IEV vs VYM
iShares Europe 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 | IEV | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.60% | 0.04% | |
| AUM | $1.7B | $81.6B | |
| Dividend Yield | 2.72% | 2.24% | |
| Holdings | 374 | 616 | |
| YTD Return | +10.43% | +14.66% | |
| 1Y Return | +19.39% | +22.16% | |
| 3Y Return (annualized) | +18.41% | +18.72% | |
| 5Y Return (annualized) | +9.92% | +12.18% | |
| Volatility (annualized) | 18.2% | 14.6% | |
| Max Drawdown | -65.6% | -58.8% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jul 25, 2000 | Nov 10, 2006 |
IEV vs VYM Performance
iShares Europe ETF (IEV) 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 IEV returned +19.39% while VYM returned +22.16%. Year to date, IEV is up 10.43% versus a gain of 14.66% for VYM.
Over three years, IEV compounded at +18.41% per year against +18.72% for VYM; over five years the annualized figures are +9.92% and +12.18% respectively. Across the full 20-year window we track, VYM has the edge at +7.01% annualized vs +3.27%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IEV has been the more volatile fund, with annualized monthly volatility of 18.2% 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 -65.6% for IEV 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 0.84. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IEV charges 0.60% per year while VYM charges 0.04%. On a $10,000 position that is $60 vs $4 annually, a gap of $56 per year that compounds over a long holding period. On income, IEV currently yields 2.72% against 2.24% for VYM.
Holdings Overlap
Frequently Asked Questions
Which is cheaper, IEV or VYM?
IEV has an expense ratio of 0.60% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $56 per year of difference.
Which performed better, IEV or VYM?
Over the past year IEV returned +19.39% vs +22.16% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), IEV annualized +3.27% vs +7.01% for VYM. Past performance does not guarantee future results.
Which is riskier, IEV or VYM?
IEV has been the more volatile fund at 18.2% annualized versus 14.6% for VYM. Worst drawdown: IEV -65.6% vs VYM -58.8%.
Should I hold both IEV and VYM?
IEV and VYM have a monthly-return correlation of 0.84, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IEV and VYM?
IEV and VYM share 2 common holdings with a 0.3% weight overlap. Combined, they hold 962 unique securities.
Which pays a higher dividend, IEV or VYM?
IEV yields 2.72% while VYM yields 2.24%, so IEV currently pays the higher dividend yield.
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