IWD vs VYM

Quick Verdict

VYM has a lower expense ratio. IWD delivered stronger 1-year returns. IWD offers more diversification with 753 holdings.

Lower Fees: VYMHigher Returns: IWDMore Diversified: IWD

Side-by-Side Comparison

MetricIWDVYMWinner
Expense Ratio0.18%0.04%
AUM$81.3B$79.0B
Dividend Yield1.44%2.86%
Holdings874568
YTD Return+20.65%+13.82%
1Y Return+32.64%+24.08%
3Y Return (annualized)+18.82%+17.72%
5Y Return (annualized)+11.71%+12.13%
Volatility (annualized)15.1%14.6%
Max Drawdown-61.9%-58.8%
Fund FamilyiShares by BlackRock (US)Vanguard (US)
CategoryEquityEquity
InceptionMay 22, 2000Nov 10, 2006

IWD vs VYM Performance

iShares Russell 1000 Value ETF (IWD) 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 IWD returned +32.64% while VYM returned +24.08%. Year to date, IWD is up 20.65% versus a gain of 13.82% for VYM.

Over three years, IWD compounded at +18.82% per year against +17.72% for VYM; over five years the annualized figures are +11.71% and +12.13% respectively. Across the full 20-year window we track, VYM has the edge at +6.98% annualized vs +6.40%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

IWD has been the more volatile fund, with annualized monthly volatility of 15.1% 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 -61.9% for IWD 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 0.97. They move almost in lockstep, so holding both mostly duplicates the same exposure.

Fees and Cost Over Time

IWD charges 0.18% per year while VYM charges 0.04%. On a $10,000 position that is $18 vs $4 annually, a gap of $14 per year that compounds over a long holding period. On income, IWD currently yields 1.44% against 2.86% for VYM.

Holdings Overlap

48.0%overlap

IWD and VYM share 294 holdings out of 1017 unique holdings combined, representing a 48.0% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in IWDWeight in VYMDifference
JPM2.48%3.36%0.88%
XOM1.56%2.83%1.27%
JNJ1.72%2.62%0.90%
WMTProProPro
ABBVProProPro
PGProProPro
CSCOProProPro
BACProProPro
CVXProProPro
MRKProProPro
See all 10 holdings IWD shares with VYM
Exact weights in each fund and the difference, for every overlapping position.
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Frequently Asked Questions

Which is cheaper, IWD or VYM?

IWD has an expense ratio of 0.18% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $14 per year of difference.

Which performed better, IWD or VYM?

Over the past year IWD returned +32.64% vs +24.08% for VYM, so IWD leads on 1-year performance. Over the longest common window we track (20 years), IWD annualized +6.40% vs +6.98% for VYM. Past performance does not guarantee future results.

Which is riskier, IWD or VYM?

IWD has been the more volatile fund at 15.1% annualized versus 14.6% for VYM. Worst drawdown: IWD -61.9% vs VYM -58.8%.

Should I hold both IWD and VYM?

IWD and VYM have a monthly-return correlation of 0.97, 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 IWD and VYM?

IWD and VYM share 294 common holdings with a 48.0% weight overlap. Combined, they hold 1017 unique securities.

Which pays a higher dividend, IWD or VYM?

IWD yields 1.44% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.

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