IJR vs VYM
iShares Core S&P Small-Cap ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. IJR delivered stronger 1-year returns. IJR offers more diversification with 662 holdings.
Side-by-Side Comparison
| Metric | IJR | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.04% | |
| AUM | $112.9B | $81.6B | |
| Dividend Yield | 1.13% | 2.24% | |
| Holdings | 662 | 616 | |
| YTD Return | +22.44% | +15.60% | |
| 1Y Return | +30.59% | +23.48% | |
| 3Y Return (annualized) | +16.47% | +19.07% | |
| 5Y Return (annualized) | +8.40% | +12.50% | |
| Volatility (annualized) | 19.4% | 14.6% | |
| Max Drawdown | -58.9% | -58.8% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | May 22, 2000 | Nov 10, 2006 |
IJR vs VYM Performance
iShares Core S&P Small-Cap ETF (IJR) 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 IJR returned +30.59% while VYM returned +23.48%. Year to date, IJR is up 22.44% versus a gain of 15.60% for VYM.
Over three years, IJR compounded at +16.47% per year against +19.07% for VYM; over five years the annualized figures are +8.40% and +12.50% respectively. Across the full 20-year window we track, IJR has the edge at +9.21% annualized vs +7.05%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IJR has been the more volatile fund, with annualized monthly volatility of 19.4% 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 -58.9% for IJR 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 0.86. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IJR charges 0.06% per year while VYM charges 0.04%. On a $10,000 position that is $6 vs $4 annually, a gap of $2 per year that compounds over a long holding period. On income, IJR currently yields 1.13% against 2.24% for VYM.
Holdings Overlap
IJR and VYM share 150 holdings out of 1044 unique holdings combined, representing a 2.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, IJR or VYM?
IJR has an expense ratio of 0.06% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $2 per year of difference.
Which performed better, IJR or VYM?
Over the past year IJR returned +30.59% vs +23.48% for VYM, so IJR leads on 1-year performance. Over the longest common window we track (20 years), IJR annualized +9.21% vs +7.05% for VYM. Past performance does not guarantee future results.
Which is riskier, IJR or VYM?
IJR has been the more volatile fund at 19.4% annualized versus 14.6% for VYM. Worst drawdown: IJR -58.9% vs VYM -58.8%.
Should I hold both IJR and VYM?
IJR and VYM have a monthly-return correlation of 0.86, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IJR and VYM?
IJR and VYM share 150 common holdings with a 2.0% weight overlap. Combined, they hold 1044 unique securities.
Which pays a higher dividend, IJR or VYM?
IJR yields 1.13% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.
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