IDEF vs VYM
iShares Defense Industrials and Tech Active ETF vs Vanguard High Dividend Yield ETF
Which is better, IDEF or VYM?
Large Cap Blend against Large Cap Value.
VYM has a lower expense ratio. VYM led over 1Y and the full window. VYM is less concentrated, with 26.1% of the fund in its ten largest positions against 38.1%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | IDEF | VYM |
|---|---|---|
| Expense Ratio | 0.55% | 0.04%Best |
| AUM | $4.3B | $81.6B |
| Dividend Yield | 0.32% | 2.22% |
| Holdings | 131 | 613 |
| YTD Return | +0.66% | +11.35%Best |
| 1Y Return | +4.38% | +15.34%Best |
| 3Y Return (annualized) | - | +17.22% |
| 5Y Return (annualized) | - | +12.30% |
| Volatility (annualized) | 20.7% | 9.4%Best |
| Max Drawdown | -15.8% | -6.7%Best |
| $10,000 over 1.3 years | $12,658 | $12,794Best |
| Top 10 Weight | 38.1% | 26.1%Best |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Value |
| Inception | May 19, 2025 | Nov 10, 2006 |
Volatility and max drawdown, and the $10,000 over 1.3 years row, are measured over the window both funds cover: May 21, 2025 to Sep 18, 2026 (1.3 years).
IDEF vs VYM growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 1.3 years both funds cover.
IDEF vs VYM Performance
iShares Defense Industrials and Tech Active ETF (IDEF) is an ETF from iShares by BlackRock (US) and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year IDEF returned +4.38% while VYM returned +15.34%. Year to date, IDEF is up 0.66% versus a gain of 11.35% for VYM.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IDEF has been the more volatile fund, with annualized monthly volatility of 20.7% compared with 9.4% 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 -6.7% for VYM. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.52. They move together some of the time, and apart the rest.
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 0.32% against 2.22% for VYM.
Holdings Overlap
18.1% of IDEF's money is in holdings VYM also owns. 2.9% of VYM's money is in holdings IDEF also owns.
IDEF and VYM share little of their money.
8 positions in common, counted across the 130 positions we hold weights for in IDEF and 557 in VYM, against full books of 131 and 613.
What only one of them owns
Our book lists 521 positions for VYM that do not appear in our book for IDEF (95.3% of the fund), and 66 for IDEF that do not appear in VYM (33.0%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in IDEF | Weight in VYM | Difference |
|---|---|---|---|
| RTX:MXUnited Technologies Corp. | 7.04% | 1.18% | 5.86% |
| LMTLockheed Martin Corp | 3.94% | 0.48% | 3.46% |
| GDGeneral Dynamics Corp. | 3.20% | 0.40% | 2.80% |
| NOCNorthrop Grumman Corp. | 2.72% | 0.29% | 2.43% |
| LHXL3Harris Technologies Inc. | 0.53% | 0.21% | 0.32% |
| HONAHoneywell Aerospace Inc | 0.24% | 0.27% | 0.03% |
| HIIHuntington Ingalls Industries Inc. | 0.37% | 0.05% | 0.32% |
| IRDMIridium Communications Inc | 0.11% | 0.02% | 0.09% |
You are not choosing between two funds in isolation.
Whichever of IDEF and VYM you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
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, by $51 a year on a $10,000 investment.
Which performed better, IDEF or VYM?
Over the past year IDEF returned +4.38% vs +15.34% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (1 years), IDEF annualized +19.88% vs +20.87% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, IDEF or VYM?
IDEF has been the more volatile fund at 20.7% annualized versus 9.4% for VYM. Worst drawdown: IDEF -15.8% vs VYM -6.7%.
Should I hold both IDEF and VYM?
IDEF and VYM have a monthly-return correlation of 0.52, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between IDEF and VYM?
18.1% of IDEF's money is in holdings VYM also owns. 2.9% of VYM's is in holdings IDEF also owns. They hold 8 positions in common, counted across the 130 positions we hold weights for in IDEF and 557 in VYM.
Which pays a higher dividend, IDEF or VYM?
IDEF yields 0.32% while VYM yields 2.22%, so VYM currently pays the higher dividend yield.
Is VYM better than IDEF?
VYM has a lower expense ratio. VYM led over 1Y and the full window. VYM is less concentrated, with 26.1% of the fund in its ten largest positions against 38.1%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.