IDU vs VYM
iShares US Utilities 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 616 holdings.
Side-by-Side Comparison
| Metric | IDU | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.38% | 0.04% | |
| AUM | $1.4B | $81.6B | |
| Dividend Yield | 2.22% | 2.24% | |
| Holdings | 49 | 616 | |
| YTD Return | +3.07% | +15.75% | |
| 1Y Return | +5.16% | +23.85% | |
| 3Y Return (annualized) | +15.36% | +19.14% | |
| 5Y Return (annualized) | +8.26% | +12.45% | |
| Volatility (annualized) | 15.0% | 14.6% | |
| Max Drawdown | -56.4% | -58.8% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jun 12, 2000 | Nov 10, 2006 |
IDU vs VYM Performance
iShares US Utilities ETF (IDU) 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 IDU returned +5.16% while VYM returned +23.85%. Year to date, IDU is up 3.07% versus a gain of 15.75% for VYM.
Over three years, IDU compounded at +15.36% per year against +19.14% for VYM; over five years the annualized figures are +8.26% and +12.45% respectively. Across the full 20-year window we track, VYM has the edge at +7.06% annualized vs +5.15%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IDU has been the more volatile fund, with annualized monthly volatility of 15.0% 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 -56.4% for IDU 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
IDU 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, IDU currently yields 2.22% against 2.24% for VYM.
Holdings Overlap
IDU and VYM share 36 holdings out of 613 unique holdings combined, representing a 5.7% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, IDU or VYM?
IDU 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, IDU or VYM?
Over the past year IDU returned +5.16% vs +23.85% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), IDU annualized +5.15% vs +7.06% for VYM. Past performance does not guarantee future results.
Which is riskier, IDU or VYM?
IDU has been the more volatile fund at 15.0% annualized versus 14.6% for VYM. Worst drawdown: IDU -56.4% vs VYM -58.8%.
Should I hold both IDU and VYM?
IDU 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 IDU and VYM?
IDU and VYM share 36 common holdings with a 5.7% weight overlap. Combined, they hold 613 unique securities.
Which pays a higher dividend, IDU or VYM?
IDU yields 2.22% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.
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