IYM vs VYM
iShares US Basic Materials ETF vs Vanguard High Dividend Yield ETF
Which is better, IYM or VYM?
Large Cap Blend against Large Cap Value.
VYM has a lower expense ratio. IYM led over 1Y, VYM over 3Y, 5Y and the full window. VYM is less concentrated, with 25.8% of the fund in its ten largest positions against 67.7%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | IYM | VYM |
|---|---|---|
| Expense Ratio | 0.37% | 0.04%Best |
| AUM | $1.3B | $78.9B |
| Dividend Yield | 1.29% | 2.37% |
| Holdings | 43 | 608 |
| YTD Return | +16.09%Best | +11.83% |
| 1Y Return | +22.49%Best | +15.96% |
| 3Y Return (annualized) | +14.44% | +18.60%Best |
| 5Y Return (annualized) | +8.07% | +11.51%Best |
| Volatility (annualized) | 22.8% | 14.6%Best |
| Max Drawdown | -68.1% | -58.8%Best |
| $10,000 over 5 years | $14,741 | $17,241Best |
| Top 10 Weight | 67.7% | 25.8%Best |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Value |
| Inception | Jun 12, 2000 | Nov 10, 2006 |
Volatility and max drawdown are measured over the window both funds cover: Nov 16, 2006 to Oct 14, 2026 (19.9 years).
IYM vs VYM growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 19.9 years both funds cover.
IYM vs VYM Performance
iShares US Basic Materials ETF (IYM) is an ETF from iShares by BlackRock (US) and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year IYM returned +22.49% while VYM returned +15.96%. Year to date, IYM is up 16.09% versus a gain of 11.83% for VYM.
Over three years, IYM compounded at +14.44% per year against +18.60% for VYM; over five years the annualized figures are +8.07% and +11.51% respectively. Across the full 20-year window we track, VYM has the edge at +6.82% annualized vs +6.41%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IYM has been the more volatile fund, with annualized monthly volatility of 22.8% compared with 14.6% for VYM. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -68.1% for IYM and -58.8% for VYM. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.81. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IYM charges 0.37% per year while VYM charges 0.04%. On a $10,000 position that is $37 vs $4 annually, a gap of $33 per year that compounds over a long holding period. On income, IYM currently yields 1.29% against 2.37% for VYM.
Holdings Overlap
41.8% of IYM's money is in holdings VYM also owns. 2.0% of VYM's money is in holdings IYM also owns.
The two portfolios partly overlap.
19 positions in common, counted across the 40 positions we hold weights for in IYM and 602 in VYM, against full books of 43 and 608.
What only one of them owns
Our book lists 552 positions for VYM that do not appear in our book for IYM (95.9% of the fund), and 15 for IYM that do not appear in VYM (34.1%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in IYM | Weight in VYM | Difference |
|---|---|---|---|
| NEMNewmont Goldcorp Corp.(nem) | 10.99% | 0.54% | 10.45% |
| FASTFastenal | 4.48% | 0.23% | 4.25% |
| APDAir Products & Chemicals In | 4.44% | 0.27% | 4.17% |
| NUENucor Corp. | 4.02% | 0.22% | 3.80% |
| IFFInternational Flavors & Fragrances Inc. | 2.26% | 0.09% | 2.17% |
| RSReliance Steel & Aluminum Co. | 2.13% | 0.08% | 2.05% |
| SCCOSouthern Copper Corp | 1.97% | 0.08% | 1.89% |
| CFCf Industries Holdings Inc. | 1.87% | 0.08% | 1.79% |
| IPInternational Paper Co. | 1.81% | 0.08% | 1.73% |
| LYBLyondellbasell Industries Nv Class | 1.58% | 0.07% | 1.51% |
41.8% of IYM is already inside VYM.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, IYM or VYM?
IYM has an expense ratio of 0.37% while VYM charges 0.04%. VYM is the cheaper option, by $33 a year on a $10,000 investment.
Which performed better, IYM or VYM?
Over the past year IYM returned +22.49% vs +15.96% for VYM, so IYM leads on 1-year performance. Over the longest common window we track (20 years), IYM annualized +6.41% vs +6.82% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, IYM or VYM?
IYM has been the more volatile fund at 22.8% annualized versus 14.6% for VYM. Worst drawdown: IYM -68.1% vs VYM -58.8%.
Should I hold both IYM and VYM?
IYM and VYM have a monthly-return correlation of 0.81, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between IYM and VYM?
41.8% of IYM's money is in holdings VYM also owns. 2.0% of VYM's is in holdings IYM also owns. They hold 19 positions in common, counted across the 40 positions we hold weights for in IYM and 602 in VYM.
Which pays a higher dividend, IYM or VYM?
IYM yields 1.29% while VYM yields 2.37%, so VYM currently pays the higher dividend yield.
Is VYM better than IYM?
VYM has a lower expense ratio. IYM led over 1Y, VYM over 3Y, 5Y and the full window. VYM is less concentrated, with 25.8% of the fund in its ten largest positions against 67.7%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.