IYLD vs VYM
IYLD vs VYM
iShares Morningstar Multi-Asset Income ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. IYLD offers more diversification with 771 holdings.
Side-by-Side Comparison
| Metric | IYLD | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.50% | 0.04% | |
| AUM | $125M | $79.0B | |
| Dividend Yield | 4.60% | 2.86% | |
| Holdings | 19,236 | 568 | |
| YTD Return | +3.30% | +13.82% | |
| 1Y Return | +9.60% | +24.08% | |
| 3Y Return (annualized) | +8.97% | +17.72% | |
| 5Y Return (annualized) | +2.51% | +12.13% | |
| Volatility (annualized) | 9.3% | 14.6% | |
| Max Drawdown | -30.2% | -58.8% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Allocation/Balanced | Equity | |
| Inception | Apr 3, 2012 | Nov 10, 2006 |
IYLD vs VYM Performance
iShares Morningstar Multi-Asset Income ETF (IYLD) 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 IYLD returned +9.60% while VYM returned +24.08%. Year to date, IYLD is up 3.30% versus a gain of 13.82% for VYM.
Over three years, IYLD compounded at +8.97% per year against +17.72% for VYM; over five years the annualized figures are +2.51% and +12.13% respectively. Across the full 14-year window we track, VYM has the edge at +6.98% annualized vs +3.99%. 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 9.3% for IYLD. 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 -30.2% for IYLD 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 0.74. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IYLD charges 0.50% per year while VYM charges 0.04%. On a $10,000 position that is $50 vs $4 annually, a gap of $46 per year that compounds over a long holding period. On income, IYLD currently yields 4.60% against 2.86% for VYM.
Holdings Overlap
IYLD and VYM share 2 holdings out of 1327 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, IYLD or VYM?
IYLD has an expense ratio of 0.50% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $46 per year of difference.
Which performed better, IYLD or VYM?
Over the past year IYLD returned +9.60% vs +24.08% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (14 years), IYLD annualized +3.99% vs +6.98% for VYM. Past performance does not guarantee future results.
Which is riskier, IYLD or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 9.3% for IYLD. Worst drawdown: IYLD -30.2% vs VYM -58.8%.
Should I hold both IYLD and VYM?
IYLD and VYM have a monthly-return correlation of 0.74, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IYLD and VYM?
IYLD and VYM share 2 common holdings with a 0.1% weight overlap. Combined, they hold 1327 unique securities.
Which pays a higher dividend, IYLD or VYM?
IYLD yields 4.60% while VYM yields 2.86%, so IYLD currently pays the higher dividend yield.
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