IAK vs VYM
iShares US Insurance 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 | IAK | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.38% | 0.04% | |
| AUM | $514M | $79.0B | |
| Dividend Yield | 2.54% | 2.86% | |
| Holdings | 61 | 568 | |
| YTD Return | +11.68% | +15.80% | |
| 1Y Return | +17.97% | +26.12% | |
| 3Y Return (annualized) | +19.65% | +18.25% | |
| 5Y Return (annualized) | +15.26% | +12.51% | |
| Volatility (annualized) | 20.3% | 14.6% | |
| Max Drawdown | -78.0% | -58.8% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | May 1, 2006 | Nov 10, 2006 |
IAK vs VYM Performance
iShares US Insurance ETF (IAK) 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 IAK returned +17.97% while VYM returned +26.12%. Year to date, IAK is up 11.68% versus a gain of 15.80% for VYM.
Over three years, IAK compounded at +19.65% per year against +18.25% for VYM; over five years the annualized figures are +15.26% and +12.51% respectively. Across the full 20-year window we track, VYM has the edge at +7.07% annualized vs +6.02%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IAK has been the more volatile fund, with annualized monthly volatility of 20.3% 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 -78.0% for IAK 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 0.86. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IAK 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, IAK currently yields 2.54% against 2.86% for VYM.
Holdings Overlap
IAK and VYM share 5 holdings out of 558 unique holdings combined, representing a 0.8% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, IAK or VYM?
IAK 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, IAK or VYM?
Over the past year IAK returned +17.97% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), IAK annualized +6.02% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, IAK or VYM?
IAK has been the more volatile fund at 20.3% annualized versus 14.6% for VYM. Worst drawdown: IAK -78.0% vs VYM -58.8%.
Should I hold both IAK and VYM?
IAK and VYM have a monthly-return correlation of 0.86, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IAK and VYM?
IAK and VYM share 5 common holdings with a 0.8% weight overlap. Combined, they hold 558 unique securities.
Which pays a higher dividend, IAK or VYM?
IAK yields 2.54% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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