IHF vs VYM
iShares US Health Care Providers ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. IHF delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | IHF | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.38% | 0.04% | |
| AUM | $1.2B | $79.0B | |
| Dividend Yield | 0.95% | 2.86% | |
| Holdings | 64 | 568 | |
| YTD Return | +18.92% | +16.10% | |
| 1Y Return | +36.12% | +25.99% | |
| 3Y Return (annualized) | +4.20% | +18.29% | |
| 5Y Return (annualized) | +2.55% | +12.35% | |
| Volatility (annualized) | 19.5% | 14.6% | |
| Max Drawdown | -58.8% | -58.8% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | May 1, 2006 | Nov 10, 2006 |
IHF vs VYM Performance
iShares US Health Care Providers ETF (IHF) 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 IHF returned +36.12% while VYM returned +25.99%. Year to date, IHF is up 18.92% versus a gain of 16.10% for VYM.
Over three years, IHF compounded at +4.20% per year against +18.29% for VYM; over five years the annualized figures are +2.55% and +12.35% respectively. Across the full 20-year window we track, IHF has the edge at +9.36% annualized vs +7.08%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IHF has been the more volatile fund, with annualized monthly volatility of 19.5% 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 -58.8% for IHF 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 0.68. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IHF 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, IHF currently yields 0.95% against 2.86% for VYM.
Holdings Overlap
IHF and VYM share 5 holdings out of 614 unique holdings combined, representing a 2.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, IHF or VYM?
IHF 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, IHF or VYM?
Over the past year IHF returned +36.12% vs +25.99% for VYM, so IHF leads on 1-year performance. Over the longest common window we track (20 years), IHF annualized +9.36% vs +7.08% for VYM. Past performance does not guarantee future results.
Which is riskier, IHF or VYM?
IHF has been the more volatile fund at 19.5% annualized versus 14.6% for VYM. Worst drawdown: IHF -58.8% vs VYM -58.8%.
Should I hold both IHF and VYM?
IHF and VYM have a monthly-return correlation of 0.68, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IHF and VYM?
IHF and VYM share 5 common holdings with a 2.4% weight overlap. Combined, they hold 614 unique securities.
Which pays a higher dividend, IHF or VYM?
IHF yields 0.95% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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