IDEF vs VYM
iShares Defense Industrials Active 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 | IDEF | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.55% | 0.04% | |
| AUM | $4.2B | $79.0B | |
| Dividend Yield | 0.34% | 2.86% | |
| Holdings | 131 | 568 | |
| YTD Return | +10.63% | +15.80% | |
| 1Y Return | +19.63% | +26.12% | |
| 3Y Return (annualized) | - | +18.25% | |
| 5Y Return (annualized) | - | +12.51% | |
| Volatility (annualized) | 21.6% | 14.6% | |
| Max Drawdown | -15.8% | -58.8% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | May 19, 2025 | Nov 10, 2006 |
IDEF vs VYM Performance
iShares Defense Industrials Active ETF (IDEF) 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 IDEF returned +19.63% while VYM returned +26.12%. Year to date, IDEF is up 10.63% versus a gain of 15.80% for VYM.
Risk: Volatility and Drawdowns
IDEF has been the more volatile fund, with annualized monthly volatility of 21.6% 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 -15.8% for IDEF 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 0.47. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IDEF charges 0.55% per year while VYM charges 0.04%. On a $10,000 position that is $55 vs $4 annually, a gap of $51 per year that compounds over a long holding period. On income, IDEF currently yields 0.34% against 2.86% for VYM.
Holdings Overlap
IDEF and VYM share 7 holdings out of 667 unique holdings combined, representing a 3.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, IDEF or VYM?
IDEF has an expense ratio of 0.55% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $51 per year of difference.
Which performed better, IDEF or VYM?
Over the past year IDEF returned +19.63% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (1 years), IDEF annualized +31.83% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, IDEF or VYM?
IDEF has been the more volatile fund at 21.6% annualized versus 14.6% for VYM. Worst drawdown: IDEF -15.8% vs VYM -58.8%.
Should I hold both IDEF and VYM?
IDEF and VYM have a monthly-return correlation of 0.47, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IDEF and VYM?
IDEF and VYM share 7 common holdings with a 3.0% weight overlap. Combined, they hold 667 unique securities.
Which pays a higher dividend, IDEF or VYM?
IDEF yields 0.34% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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