IYC vs VYM

Quick Verdict

VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.

Lower Fees: VYMHigher Returns: VYMMore Diversified: VYM

Side-by-Side Comparison

MetricIYCVYMWinner
Expense Ratio0.38%0.04%
AUM$1.1B$79.0B
Dividend Yield0.51%2.86%
Holdings162568
YTD Return+0.43%+15.57%
1Y Return+4.11%+25.99%
3Y Return (annualized)+13.08%+18.02%
5Y Return (annualized)+6.44%+12.71%
Volatility (annualized)17.5%14.6%
Max Drawdown-54.0%-58.8%
Fund FamilyiShares by BlackRock (US)Vanguard (US)
CategoryEquityEquity
InceptionJun 12, 2000Nov 10, 2006

IYC vs VYM Performance

iShares U.S. Consumer Discretionary ETF (IYC) 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 IYC returned +4.11% while VYM returned +25.99%. Year to date, IYC is up 0.43% versus a gain of 15.57% for VYM.

Over three years, IYC compounded at +13.08% per year against +18.02% for VYM; over five years the annualized figures are +6.44% and +12.71% respectively. Across the full 20-year window we track, IYC has the edge at +7.81% annualized vs +7.07%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

IYC has been the more volatile fund, with annualized monthly volatility of 17.5% 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 -54.0% for IYC 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 0.83. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

IYC charges 0.38% per year while VYM charges 0.04%. On a $10,000 position that is $38 vs $4 annually, a gap of $34 per year that compounds over a long holding period. On income, IYC currently yields 0.51% against 2.86% for VYM.

Holdings Overlap

9.7%overlap

IYC and VYM share 47 holdings out of 669 unique holdings combined, representing a 9.7% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in IYCWeight in VYMDifference
WMT4.14%2.44%1.70%
HD4.21%1.66%2.55%
MCD3.26%1.07%2.19%
LOWProProPro
SBUXProProPro
TGTProProPro
NKEProProPro
FProProPro
EBAYProProPro
YUMProProPro
See all 10 holdings IYC 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, IYC or VYM?

IYC has an expense ratio of 0.38% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $34 per year of difference.

Which performed better, IYC or VYM?

Over the past year IYC returned +4.11% vs +25.99% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), IYC annualized +7.81% vs +7.07% for VYM. Past performance does not guarantee future results.

Which is riskier, IYC or VYM?

IYC has been the more volatile fund at 17.5% annualized versus 14.6% for VYM. Worst drawdown: IYC -54.0% vs VYM -58.8%.

Should I hold both IYC and VYM?

IYC and VYM have a monthly-return correlation of 0.83, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between IYC and VYM?

IYC and VYM share 47 common holdings with a 9.7% weight overlap. Combined, they hold 669 unique securities.

Which pays a higher dividend, IYC or VYM?

IYC yields 0.51% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.

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