IYW vs VYM
IYW vs VYM
iShares US Technology ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. IYW delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | IYW | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.38% | 0.04% | |
| AUM | $23.3B | $79.0B | |
| Dividend Yield | 0.10% | 2.86% | |
| Holdings | 153 | 568 | |
| YTD Return | +25.79% | +15.45% | |
| 1Y Return | +39.93% | +26.05% | |
| 3Y Return (annualized) | +32.31% | +17.96% | |
| 5Y Return (annualized) | +19.44% | +12.54% | |
| Volatility (annualized) | 24.6% | 14.6% | |
| Max Drawdown | -81.9% | -58.8% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | May 15, 2000 | Nov 10, 2006 |
IYW vs VYM Performance
iShares US Technology ETF (IYW) 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 IYW returned +39.93% while VYM returned +26.05%. Year to date, IYW is up 25.79% versus a gain of 15.45% for VYM.
Over three years, IYW compounded at +32.31% per year against +17.96% for VYM; over five years the annualized figures are +19.44% and +12.54% respectively. Across the full 20-year window we track, IYW has the edge at +8.89% annualized vs +7.06%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IYW has been the more volatile fund, with annualized monthly volatility of 24.6% 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 -81.9% for IYW 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 0.69. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IYW 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, IYW currently yields 0.10% against 2.86% for VYM.
Holdings Overlap
IYW and VYM share 17 holdings out of 691 unique holdings combined, representing a 9.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in IYW | Weight in VYM | Difference |
|---|---|---|---|
| AVGO | 4.27% | 6.47% | 2.20% |
| IBM | 1.41% | 0.98% | 0.43% |
| TXN | 1.39% | 0.85% | 0.54% |
| ADI | Pro | Pro | Pro |
| QCOM | Pro | Pro | Pro |
| GLW | Pro | Pro | Pro |
| DELL | Pro | Pro | Pro |
| HPE | Pro | Pro | Pro |
| MCHP | Pro | Pro | Pro |
| Q | Pro | Pro | Pro |
See all 10 holdings IYW 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, IYW or VYM?
IYW 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, IYW or VYM?
Over the past year IYW returned +39.93% vs +26.05% for VYM, so IYW leads on 1-year performance. Over the longest common window we track (20 years), IYW annualized +8.89% vs +7.06% for VYM. Past performance does not guarantee future results.
Which is riskier, IYW or VYM?
IYW has been the more volatile fund at 24.6% annualized versus 14.6% for VYM. Worst drawdown: IYW -81.9% vs VYM -58.8%.
Should I hold both IYW and VYM?
IYW and VYM have a monthly-return correlation of 0.69, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IYW and VYM?
IYW and VYM share 17 common holdings with a 9.0% weight overlap. Combined, they hold 691 unique securities.
Which pays a higher dividend, IYW or VYM?
IYW yields 0.10% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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