IETC vs VYM

IETC vs VYM

Which is better, IETC or VYM?

Large Cap Growth against Large Cap Value.

VYM has a lower expense ratio. IETC led over 3Y, 5Y and the full window, VYM over 1Y. VYM is less concentrated, with 26.1% of the fund in its ten largest positions against 49.4%.

Lower Fees: VYMHigher Returns: splitLess Concentrated: VYM

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

MetricIETCVYM
Expense Ratio0.18%0.04%Best
AUM$686M$81.6B
Dividend Yield0.38%2.22%
Holdings106613
YTD Return+6.58%+11.71%Best
1Y Return+5.14%+16.24%Best
3Y Return (annualized)+25.22%Best+17.24%
5Y Return (annualized)+13.45%Best+11.86%
Volatility (annualized)21.5%15.1%Best
Max Drawdown-38.5%-35.7%Best
$10,000 over 5 years$18,794Best$17,514
Top 10 Weight49.4%26.1%Best
Fund FamilyiShares by BlackRock (US)Vanguard (US)
CategoryEquityEquity
StyleLarge Cap GrowthLarge Cap Value
InceptionMar 21, 2018Nov 10, 2006

Volatility and max drawdown are measured over the window both funds cover: Mar 23, 2018 to Sep 16, 2026 (8.5 years).

IETC 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 8.5 years both funds cover.

IETC vs VYM Performance

iShares US Tech Independence Focused ETF (IETC) 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 IETC returned +5.14% while VYM returned +16.24%. Year to date, IETC is up 6.58% versus a gain of 11.71% for VYM.

Over three years, IETC compounded at +25.22% per year against +17.24% for VYM; over five years the annualized figures are +13.45% and +11.86% respectively. Across the full 9-year window we track, IETC has the edge at +19.70% annualized vs +10.40%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

IETC has been the more volatile fund, with annualized monthly volatility of 21.5% compared with 15.1% 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 -38.5% for IETC and -35.7% 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 0.60. They move together some of the time, and apart the rest.

Fees and Cost Over Time

IETC charges 0.18% per year while VYM charges 0.04%. On a $10,000 position that is $18 vs $4 annually, a gap of $14 per year that compounds over a long holding period. On income, IETC currently yields 0.38% against 2.22% for VYM.

Holdings Overlap

IETC already in VYM19.5%
VYM already in IETC14.4%

19.5% of IETC's money is in holdings VYM also owns. 14.4% of VYM's money is in holdings IETC also owns.

IETC and VYM share little of their money.

19 positions in common, counted across the 109 positions we hold weights for in IETC and 557 in VYM, against full books of 106 and 613.

What only one of them owns

Our book lists 509 positions for VYM that do not appear in our book for IETC (82.7% of the fund), and 81 for IETC that do not appear in VYM (79.8%).

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

StockWeight in IETCWeight in VYMDifference
AVGOBroadcom Inc8.06%7.35%0.71%
CSCOCisco Systems Inc. - Ordinary Shares2.26%1.86%0.40%
ORCLOracle Corp - Common2.11%0.90%1.21%
IBMInternational Business Machines Corp.1.62%0.85%0.77%
VRSNVerisign Inc.1.55%0.10%1.45%
TXNTexas Instrument Inc0.27%1.02%0.75%
QCOMQualcomm Inc.0.36%0.63%0.27%
DELLDell Technologies Inc0.33%0.50%0.17%
SSNCSs&C Technologies Holdings Inc.0.75%0.06%0.69%
NTAPNetapp Inc0.54%0.14%0.40%

You are not choosing between two funds in isolation.

Whichever of IETC and VYM you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.

IETCVYM

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, IETC or VYM?

IETC has an expense ratio of 0.18% while VYM charges 0.04%. VYM is the cheaper option, by $14 a year on a $10,000 investment.

Which performed better, IETC or VYM?

Over the past year IETC returned +5.14% vs +16.24% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (9 years), IETC annualized +19.70% vs +10.40% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, IETC or VYM?

IETC has been the more volatile fund at 21.5% annualized versus 15.1% for VYM. Worst drawdown: IETC -38.5% vs VYM -35.7%.

Should I hold both IETC and VYM?

IETC and VYM have a monthly-return correlation of 0.60, 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 IETC and VYM?

19.5% of IETC's money is in holdings VYM also owns. 14.4% of VYM's is in holdings IETC also owns. They hold 19 positions in common, counted across the 109 positions we hold weights for in IETC and 557 in VYM.

Which pays a higher dividend, IETC or VYM?

IETC yields 0.38% while VYM yields 2.22%, so VYM currently pays the higher dividend yield.

Is VYM better than IETC?

VYM has a lower expense ratio. IETC led over 3Y, 5Y and the full window, VYM over 1Y. VYM is less concentrated, with 26.1% of the fund in its ten largest positions against 49.4%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.