ILCB vs VYM
iShares Morningstar US Equity ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
ILCB has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 616 holdings.
Side-by-Side Comparison
| Metric | ILCB | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.04% | |
| AUM | $1.3B | $81.6B | |
| Dividend Yield | 0.99% | 2.24% | |
| Holdings | 533 | 616 | |
| YTD Return | +13.33% | +14.84% | |
| 1Y Return | +19.64% | +20.88% | |
| 3Y Return (annualized) | +21.42% | +18.34% | |
| 5Y Return (annualized) | +12.29% | +12.04% | |
| Volatility (annualized) | 14.7% | 14.6% | |
| Max Drawdown | -52.8% | -58.8% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jun 28, 2004 | Nov 10, 2006 |
ILCB vs VYM Performance
iShares Morningstar US Equity ETF (ILCB) 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 ILCB returned +19.64% while VYM returned +20.88%. Year to date, ILCB is up 13.33% versus a gain of 14.84% for VYM.
Over three years, ILCB compounded at +21.42% per year against +18.34% for VYM; over five years the annualized figures are +12.29% and +12.04% respectively. Across the full 20-year window we track, ILCB has the edge at +9.65% annualized vs +7.01%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
ILCB has been the more volatile fund, with annualized monthly volatility of 14.7% 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 -52.8% for ILCB 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 0.91. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
ILCB charges 0.03% per year while VYM charges 0.04%. On a $10,000 position that is $3 vs $4 annually, a gap of $1 per year that compounds over a long holding period. On income, ILCB currently yields 0.99% against 2.24% for VYM.
Holdings Overlap
ILCB and VYM share 218 holdings out of 884 unique holdings combined, representing a 32.6% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, ILCB or VYM?
ILCB has an expense ratio of 0.03% while VYM charges 0.04%. ILCB is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, ILCB or VYM?
Over the past year ILCB returned +19.64% vs +20.88% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), ILCB annualized +9.65% vs +7.01% for VYM. Past performance does not guarantee future results.
Which is riskier, ILCB or VYM?
ILCB has been the more volatile fund at 14.7% annualized versus 14.6% for VYM. Worst drawdown: ILCB -52.8% vs VYM -58.8%.
Should I hold both ILCB and VYM?
ILCB and VYM have a monthly-return correlation of 0.91, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between ILCB and VYM?
ILCB and VYM share 218 common holdings with a 32.6% weight overlap. Combined, they hold 884 unique securities.
Which pays a higher dividend, ILCB or VYM?
ILCB yields 0.99% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.
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