IAT vs VYM
iShares US Regional Banks ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. IAT delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | IAT | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.38% | 0.04% | |
| AUM | $666M | $79.0B | |
| Dividend Yield | 2.60% | 2.86% | |
| Holdings | 35 | 568 | |
| YTD Return | +18.05% | +16.53% | |
| 1Y Return | +31.35% | +25.03% | |
| 3Y Return (annualized) | +24.40% | +18.54% | |
| 5Y Return (annualized) | +4.94% | +12.25% | |
| Volatility (annualized) | 25.5% | 14.6% | |
| Max Drawdown | -78.8% | -58.8% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | May 1, 2006 | Nov 10, 2006 |
IAT vs VYM Performance
iShares US Regional Banks ETF (IAT) 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 IAT returned +31.35% while VYM returned +25.03%. Year to date, IAT is up 18.05% versus a gain of 16.53% for VYM.
Over three years, IAT compounded at +24.40% per year against +18.54% for VYM; over five years the annualized figures are +4.94% and +12.25% respectively. Across the full 20-year window we track, VYM has the edge at +7.10% annualized vs +2.09%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IAT has been the more volatile fund, with annualized monthly volatility of 25.5% 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 -78.8% for IAT 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 0.75. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IAT 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, IAT currently yields 2.60% against 2.86% for VYM.
Holdings Overlap
IAT and VYM share 26 holdings out of 564 unique holdings combined, representing a 2.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, IAT or VYM?
IAT 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, IAT or VYM?
Over the past year IAT returned +31.35% vs +25.03% for VYM, so IAT leads on 1-year performance. Over the longest common window we track (20 years), IAT annualized +2.09% vs +7.10% for VYM. Past performance does not guarantee future results.
Which is riskier, IAT or VYM?
IAT has been the more volatile fund at 25.5% annualized versus 14.6% for VYM. Worst drawdown: IAT -78.8% vs VYM -58.8%.
Should I hold both IAT and VYM?
IAT and VYM have a monthly-return correlation of 0.75, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IAT and VYM?
IAT and VYM share 26 common holdings with a 2.4% weight overlap. Combined, they hold 564 unique securities.
Which pays a higher dividend, IAT or VYM?
IAT yields 2.60% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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