IBAT vs VYM

Quick Verdict

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

Lower Fees: VYMHigher Returns: IBATMore Diversified: VYM

Side-by-Side Comparison

MetricIBATVYMWinner
Expense Ratio0.47%0.04%
AUM$68M$79.0B
Dividend Yield0.68%2.86%
Holdings99568
YTD Return+43.12%+16.53%
1Y Return+71.27%+25.03%
3Y Return (annualized)-+18.54%
5Y Return (annualized)-+12.25%
Volatility (annualized)30.3%14.6%
Max Drawdown-27.9%-58.8%
Fund FamilyiShares by BlackRock (US)Vanguard (US)
CategoryEquityEquity
InceptionMar 19, 2024Nov 10, 2006

IBAT vs VYM Performance

iShares Energy Storage & Materials ETF (IBAT) 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 IBAT returned +71.27% while VYM returned +25.03%. Year to date, IBAT is up 43.12% versus a gain of 16.53% for VYM.

Risk: Volatility and Drawdowns

IBAT has been the more volatile fund, with annualized monthly volatility of 30.3% 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 -27.9% for IBAT 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 0.52. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

IBAT charges 0.47% per year while VYM charges 0.04%. On a $10,000 position that is $47 vs $4 annually, a gap of $43 per year that compounds over a long holding period. On income, IBAT currently yields 0.68% against 2.86% for VYM.

Holdings Overlap

1.0%overlap

IBAT and VYM share 3 holdings out of 638 unique holdings combined, representing a 1.0% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in IBATWeight in VYMDifference
APD6.54%0.27%6.27%
ETN3.38%0.65%2.73%
DOW0.47%0.10%0.37%

Frequently Asked Questions

Which is cheaper, IBAT or VYM?

IBAT has an expense ratio of 0.47% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $43 per year of difference.

Which performed better, IBAT or VYM?

Over the past year IBAT returned +71.27% vs +25.03% for VYM, so IBAT leads on 1-year performance. Over the longest common window we track (2 years), IBAT annualized +25.32% vs +7.10% for VYM. Past performance does not guarantee future results.

Which is riskier, IBAT or VYM?

IBAT has been the more volatile fund at 30.3% annualized versus 14.6% for VYM. Worst drawdown: IBAT -27.9% vs VYM -58.8%.

Should I hold both IBAT and VYM?

IBAT and VYM have a monthly-return correlation of 0.52, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between IBAT and VYM?

IBAT and VYM share 3 common holdings with a 1.0% weight overlap. Combined, they hold 638 unique securities.

Which pays a higher dividend, IBAT or VYM?

IBAT yields 0.68% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.

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