IWB vs VYM
IWB vs VYM
iShares Russell 1000 ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. IWB offers more diversification with 884 holdings.
Side-by-Side Comparison
| Metric | IWB | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.15% | 0.04% | |
| AUM | $47.8B | $79.0B | |
| Dividend Yield | 0.92% | 2.86% | |
| Holdings | 1,029 | 568 | |
| YTD Return | +13.62% | +15.80% | |
| 1Y Return | +23.13% | +26.12% | |
| 3Y Return (annualized) | +21.12% | +18.25% | |
| 5Y Return (annualized) | +12.60% | +12.51% | |
| Volatility (annualized) | 15.3% | 14.6% | |
| Max Drawdown | -56.4% | -58.8% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | May 15, 2000 | Nov 10, 2006 |
IWB vs VYM Performance
iShares Russell 1000 ETF (IWB) is a ETF from iShares by BlackRock (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year IWB returned +23.13% while VYM returned +26.12%. Year to date, IWB is up 13.62% versus a gain of 15.80% for VYM.
Over three years, IWB compounded at +21.12% per year against +18.25% for VYM; over five years the annualized figures are +12.60% and +12.51% respectively. Across the full 20-year window we track, IWB has the edge at +7.14% annualized vs +7.07%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IWB has been the more volatile fund, with annualized monthly volatility of 15.3% 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 -56.4% for IWB and -58.8% for VYM. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.92. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
IWB charges 0.15% per year while VYM charges 0.04%. On a $10,000 position that is $15 vs $4 annually, a gap of $11 per year that compounds over a long holding period. On income, IWB currently yields 0.92% against 2.86% for VYM.
Holdings Overlap
IWB and VYM share 303 holdings out of 1139 unique holdings combined, representing a 31.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in IWB | Weight in VYM | Difference |
|---|---|---|---|
| AVGO | 2.49% | 6.47% | 3.98% |
| JPM:US | 1.29% | 3.36% | 2.07% |
| XOM | 0.81% | 2.83% | 2.02% |
| JNJ | Pro | Pro | Pro |
| WMT | Pro | Pro | Pro |
| ABBV | Pro | Pro | Pro |
| PG | Pro | Pro | Pro |
| HD | Pro | Pro | Pro |
| CAT | Pro | Pro | Pro |
| CSCO | Pro | Pro | Pro |
See all 10 holdings IWB shares with VYM Exact weights in each fund and the difference, for every overlapping position. Get FundXLS Pro: $29/moFirst 500 subscribers, then $49/mo. Cancel anytime. | |||
Frequently Asked Questions
Which is cheaper, IWB or VYM?
IWB has an expense ratio of 0.15% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $11 per year of difference.
Which performed better, IWB or VYM?
Over the past year IWB returned +23.13% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), IWB annualized +7.14% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, IWB or VYM?
IWB has been the more volatile fund at 15.3% annualized versus 14.6% for VYM. Worst drawdown: IWB -56.4% vs VYM -58.8%.
Should I hold both IWB and VYM?
IWB and VYM have a monthly-return correlation of 0.92, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between IWB and VYM?
IWB and VYM share 303 common holdings with a 31.2% weight overlap. Combined, they hold 1139 unique securities.
Which pays a higher dividend, IWB or VYM?
IWB yields 0.92% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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