IBB vs VYM
iShares Biotechnology ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. IBB delivered stronger 1-year returns. VYM offers more diversification with 568 holdings.
Side-by-Side Comparison
| Metric | IBB | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.44% | 0.04% | |
| AUM | $9.4B | $79.0B | |
| Dividend Yield | 0.22% | 2.86% | |
| Holdings | 253 | 568 | |
| YTD Return | +17.82% | +16.78% | |
| 1Y Return | +45.39% | +24.43% | |
| 3Y Return (annualized) | +16.02% | +18.60% | |
| 5Y Return (annualized) | +3.53% | +12.30% | |
| Volatility (annualized) | 22.0% | 14.6% | |
| Max Drawdown | -62.9% | -58.8% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Feb 5, 2001 | Nov 10, 2006 |
IBB vs VYM Performance
iShares Biotechnology ETF (IBB) 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 IBB returned +45.39% while VYM returned +24.43%. Year to date, IBB is up 17.82% versus a gain of 16.78% for VYM.
Over three years, IBB compounded at +16.02% per year against +18.60% for VYM; over five years the annualized figures are +3.53% and +12.30% respectively. Across the full 20-year window we track, IBB has the edge at +7.27% annualized vs +7.11%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IBB has been the more volatile fund, with annualized monthly volatility of 22.0% 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 -62.9% for IBB 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 0.57. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IBB charges 0.44% per year while VYM charges 0.04%. On a $10,000 position that is $44 vs $4 annually, a gap of $40 per year that compounds over a long holding period. On income, IBB currently yields 0.22% against 2.86% for VYM.
Holdings Overlap
Frequently Asked Questions
Which is cheaper, IBB or VYM?
IBB has an expense ratio of 0.44% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $40 per year of difference.
Which performed better, IBB or VYM?
Over the past year IBB returned +45.39% vs +24.43% for VYM, so IBB leads on 1-year performance. Over the longest common window we track (20 years), IBB annualized +7.27% vs +7.11% for VYM. Past performance does not guarantee future results.
Which is riskier, IBB or VYM?
IBB has been the more volatile fund at 22.0% annualized versus 14.6% for VYM. Worst drawdown: IBB -62.9% vs VYM -58.8%.
Should I hold both IBB and VYM?
IBB and VYM have a monthly-return correlation of 0.57, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IBB and VYM?
IBB and VYM share 2 common holdings with a 1.6% weight overlap. Combined, they hold 797 unique securities.
Which pays a higher dividend, IBB or VYM?
IBB yields 0.22% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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