IXJ vs VYM
IXJ vs VYM
iShares Global Healthcare ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | IXJ | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.40% | 0.04% | |
| AUM | $4.1B | $79.0B | |
| Dividend Yield | 1.47% | 2.86% | |
| Holdings | 125 | 568 | |
| YTD Return | +4.35% | +15.45% | |
| 1Y Return | +21.59% | +26.05% | |
| 3Y Return (annualized) | +7.37% | +17.96% | |
| 5Y Return (annualized) | +4.48% | +12.54% | |
| Volatility (annualized) | 13.2% | 14.6% | |
| Max Drawdown | -42.8% | -58.8% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Nov 13, 2001 | Nov 10, 2006 |
IXJ vs VYM Performance
iShares Global Healthcare ETF (IXJ) 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 IXJ returned +21.59% while VYM returned +26.05%. Year to date, IXJ is up 4.35% versus a gain of 15.45% for VYM.
Over three years, IXJ compounded at +7.37% per year against +17.96% for VYM; over five years the annualized figures are +4.48% and +12.54% respectively. Across the full 20-year window we track, VYM has the edge at +7.06% annualized vs +6.07%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 13.2% for IXJ. 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 -42.8% for IXJ 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 0.77. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IXJ charges 0.40% per year while VYM charges 0.04%. On a $10,000 position that is $40 vs $4 annually, a gap of $36 per year that compounds over a long holding period. On income, IXJ currently yields 1.47% against 2.86% for VYM.
Holdings Overlap
IXJ and VYM share 19 holdings out of 648 unique holdings combined, representing a 13.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in IXJ | Weight in VYM | Difference |
|---|---|---|---|
| JNJ | 7.07% | 2.62% | 4.45% |
| ABBV | 5.10% | 1.80% | 3.30% |
| UNH | 4.34% | 1.17% | 3.17% |
| MRK | Pro | Pro | Pro |
| AMGN | Pro | Pro | Pro |
| ABT | Pro | Pro | Pro |
| GILD | Pro | Pro | Pro |
| PFE | Pro | Pro | Pro |
| CVS | Pro | Pro | Pro |
| BMY | Pro | Pro | Pro |
See all 10 holdings IXJ 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, IXJ or VYM?
IXJ has an expense ratio of 0.40% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $36 per year of difference.
Which performed better, IXJ or VYM?
Over the past year IXJ returned +21.59% vs +26.05% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), IXJ annualized +6.07% vs +7.06% for VYM. Past performance does not guarantee future results.
Which is riskier, IXJ or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 13.2% for IXJ. Worst drawdown: IXJ -42.8% vs VYM -58.8%.
Should I hold both IXJ and VYM?
IXJ and VYM have a monthly-return correlation of 0.77, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IXJ and VYM?
IXJ and VYM share 19 common holdings with a 13.1% weight overlap. Combined, they hold 648 unique securities.
Which pays a higher dividend, IXJ or VYM?
IXJ yields 1.47% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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