IHE vs VYM
iShares US Pharmaceutical ETF vs Vanguard High Dividend Yield ETF
Which is better, IHE or VYM?
Large Cap Blend against Large Cap Value.
VYM has a lower expense ratio. IHE led over 1Y, 3Y, 5Y and the full window. VYM is less concentrated, with 26.1% of the fund in its ten largest positions against 75.9%.
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 | IHE | VYM |
|---|---|---|
| Expense Ratio | 0.37% | 0.04%Best |
| AUM | $1.7B | $81.6B |
| Dividend Yield | 1.43% | 2.22% |
| Holdings | 60 | 613 |
| YTD Return | +20.46%Best | +10.23% |
| 1Y Return | +46.24%Best | +14.28% |
| 3Y Return (annualized) | +20.92%Best | +17.50% |
| 5Y Return (annualized) | +12.09%Best | +11.60% |
| Volatility (annualized) | 15.8% | 14.6%Best |
| Max Drawdown | -39.6%Best | -58.8% |
| $10,000 over 5 years | $17,694Best | $17,311 |
| Top 10 Weight | 75.9% | 26.1%Best |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Value |
| Inception | May 1, 2006 | Nov 10, 2006 |
Volatility and max drawdown are measured over the window both funds cover: Nov 16, 2006 to Sep 23, 2026 (19.9 years).
IHE 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 19.9 years both funds cover.
IHE vs VYM Performance
iShares US Pharmaceutical ETF (IHE) 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 IHE returned +46.24% while VYM returned +14.28%. Year to date, IHE is up 20.46% versus a gain of 10.23% for VYM.
Over three years, IHE compounded at +20.92% per year against +17.50% for VYM; over five years the annualized figures are +12.09% and +11.60% respectively. Across the full 20-year window we track, IHE has the edge at +9.71% annualized vs +6.76%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IHE has been the more volatile fund, with annualized monthly volatility of 15.8% 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 -39.6% for IHE and -58.8% 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 0.71. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IHE 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, IHE currently yields 1.43% against 2.22% for VYM.
Holdings Overlap
50.5% of IHE's money is in holdings VYM also owns. 5.3% of VYM's money is in holdings IHE also owns.
The two portfolios partly overlap.
9 positions in common, counted across the 57 positions we hold weights for in IHE and 557 in VYM, against full books of 60 and 613.
What only one of them owns
Our book lists 519 positions for VYM that do not appear in our book for IHE (91.8% of the fund), and 46 for IHE that do not appear in VYM (47.2%).
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 IHE | Weight in VYM | Difference |
|---|---|---|---|
| JNJJohnson & Johnson - Common | 22.45% | 2.51% | 19.94% |
| MRKMerck & Company Inc | 5.00% | 1.31% | 3.69% |
| BMYBristol-Myers Squibb Co. | 4.84% | 0.54% | 4.30% |
| PFEPfizer Inc | 4.48% | 0.58% | 3.90% |
| RPRXRoyalty Pharma | 4.54% | 0.10% | 4.44% |
| VTRSViatris Inc. | 4.19% | 0.08% | 4.11% |
| ZTSZoetis Inc, Class A | 3.82% | 0.13% | 3.69% |
| OGNOrganon & Co | 0.79% | 0.01% | 0.78% |
| PRGOPerrigo Company Plc Ordinary Shares | 0.44% | 0.01% | 0.43% |
50.5% of IHE is already inside VYM.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, IHE or VYM?
IHE has an expense ratio of 0.37% while VYM charges 0.04%. VYM is the cheaper option, by $33 a year on a $10,000 investment.
Which performed better, IHE or VYM?
Over the past year IHE returned +46.24% vs +14.28% for VYM, so IHE leads on 1-year performance. Over the longest common window we track (20 years), IHE annualized +9.71% vs +6.76% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, IHE or VYM?
IHE has been the more volatile fund at 15.8% annualized versus 14.6% for VYM. Worst drawdown: IHE -39.6% vs VYM -58.8%.
Should I hold both IHE and VYM?
IHE and VYM have a monthly-return correlation of 0.71, 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 IHE and VYM?
50.5% of IHE's money is in holdings VYM also owns. 5.3% of VYM's is in holdings IHE also owns. They hold 9 positions in common, counted across the 57 positions we hold weights for in IHE and 557 in VYM.
Which pays a higher dividend, IHE or VYM?
IHE yields 1.43% while VYM yields 2.22%, so VYM currently pays the higher dividend yield.
Is VYM better than IHE?
VYM has a lower expense ratio. IHE led over 1Y, 3Y, 5Y and the full window. VYM is less concentrated, with 26.1% of the fund in its ten largest positions against 75.9%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.