IHE vs VYM
iShares US Pharmaceutical ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. IHE delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | IHE | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.38% | 0.04% | |
| AUM | $1.6B | $79.0B | |
| Dividend Yield | 1.48% | 2.86% | |
| Holdings | 60 | 568 | |
| YTD Return | +22.10% | +16.53% | |
| 1Y Return | +55.72% | +25.03% | |
| 3Y Return (annualized) | +18.91% | +18.54% | |
| 5Y Return (annualized) | +11.46% | +12.25% | |
| Volatility (annualized) | 15.6% | 14.6% | |
| Max Drawdown | -39.6% | -58.8% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | May 1, 2006 | Nov 10, 2006 |
IHE vs VYM Performance
iShares US Pharmaceutical ETF (IHE) 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 IHE returned +55.72% while VYM returned +25.03%. Year to date, IHE is up 22.10% versus a gain of 16.53% for VYM.
Over three years, IHE compounded at +18.91% per year against +18.54% for VYM; over five years the annualized figures are +11.46% and +12.25% respectively. Across the full 20-year window we track, IHE has the edge at +9.82% annualized vs +7.10%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IHE has been the more volatile fund, with annualized monthly volatility of 15.6% 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 worth weighing if you expect to sell during market stress rather than ride it out.
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 0.38% 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, IHE currently yields 1.48% against 2.86% for VYM.
Holdings Overlap
IHE and VYM share 8 holdings out of 607 unique holdings combined, representing a 5.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, IHE or VYM?
IHE 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, IHE or VYM?
Over the past year IHE returned +55.72% vs +25.03% for VYM, so IHE leads on 1-year performance. Over the longest common window we track (20 years), IHE annualized +9.82% vs +7.10% for VYM. Past performance does not guarantee future results.
Which is riskier, IHE or VYM?
IHE has been the more volatile fund at 15.6% 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 combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IHE and VYM?
IHE and VYM share 8 common holdings with a 5.4% weight overlap. Combined, they hold 607 unique securities.
Which pays a higher dividend, IHE or VYM?
IHE yields 1.48% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.