IEO vs VYM
iShares US Oil & Gas Exploration & Production ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. IEO delivered stronger 1-year returns. VYM offers more diversification with 616 holdings.
Side-by-Side Comparison
| Metric | IEO | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.37% | 0.04% | |
| AUM | $589M | $81.6B | |
| Dividend Yield | 1.87% | 2.24% | |
| Holdings | 50 | 616 | |
| YTD Return | +49.99% | +14.66% | |
| 1Y Return | +57.00% | +22.16% | |
| 3Y Return (annualized) | +14.38% | +18.72% | |
| 5Y Return (annualized) | +27.39% | +12.18% | |
| Volatility (annualized) | 32.2% | 14.6% | |
| Max Drawdown | -80.7% | -58.8% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | May 1, 2006 | Nov 10, 2006 |
IEO vs VYM Performance
iShares US Oil & Gas Exploration & Production ETF (IEO) 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 IEO returned +57.00% while VYM returned +22.16%. Year to date, IEO is up 49.99% versus a gain of 14.66% for VYM.
Over three years, IEO compounded at +14.38% per year against +18.72% for VYM; over five years the annualized figures are +27.39% and +12.18% respectively. Across the full 20-year window we track, VYM has the edge at +7.01% annualized vs +5.73%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IEO has been the more volatile fund, with annualized monthly volatility of 32.2% 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 -80.7% for IEO 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 0.63. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IEO charges 0.37% per year while VYM charges 0.04%. On a $10,000 position that is $37 vs $4 annually, a gap of $33 per year that compounds over a long holding period. On income, IEO currently yields 1.87% against 2.24% for VYM.
Holdings Overlap
IEO and VYM share 25 holdings out of 625 unique holdings combined, representing a 2.8% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, IEO or VYM?
IEO has an expense ratio of 0.37% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $33 per year of difference.
Which performed better, IEO or VYM?
Over the past year IEO returned +57.00% vs +22.16% for VYM, so IEO leads on 1-year performance. Over the longest common window we track (20 years), IEO annualized +5.73% vs +7.01% for VYM. Past performance does not guarantee future results.
Which is riskier, IEO or VYM?
IEO has been the more volatile fund at 32.2% annualized versus 14.6% for VYM. Worst drawdown: IEO -80.7% vs VYM -58.8%.
Should I hold both IEO and VYM?
IEO and VYM have a monthly-return correlation of 0.63, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IEO and VYM?
IEO and VYM share 25 common holdings with a 2.8% weight overlap. Combined, they hold 625 unique securities.
Which pays a higher dividend, IEO or VYM?
IEO yields 1.87% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.
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