ITB vs VYM
iShares US Home Construction ETF vs Vanguard High Dividend Yield ETF
Which is better, ITB or VYM?
Mid Cap Blend against Large Cap Value.
VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window. VYM is less concentrated, with 25.9% of the fund in its ten largest positions against 67.8%.
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 | ITB | VYM |
|---|---|---|
| Expense Ratio | 0.37% | 0.04%Best |
| AUM | $2.4B | $81.6B |
| Dividend Yield | 0.67% | 2.24% |
| Holdings | 47 | 613 |
| YTD Return | -3.49% | +14.82%Best |
| 1Y Return | -17.35% | +20.84%Best |
| 3Y Return (annualized) | +5.04% | +18.64%Best |
| 5Y Return (annualized) | +6.34% | +12.28%Best |
| Volatility (annualized) | 31.2% | 14.5%Best |
| Max Drawdown | -85.4% | -58.8%Best |
| $10,000 over 5 years | $13,598 | $17,845Best |
| Top 10 Weight | 67.8% | 25.9%Best |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Mid 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 4, 2026 (19.8 years).
ITB 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 19.8 years both funds cover.
ITB vs VYM Performance
iShares US Home Construction ETF (ITB) 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 ITB returned -17.35% while VYM returned +20.84%. Year to date, ITB is down 3.49% versus a gain of 14.82% for VYM.
Over three years, ITB compounded at +5.04% per year against +18.64% for VYM; over five years the annualized figures are +6.34% and +12.28% respectively. Across the full 20-year window we track, VYM has the edge at +7.00% annualized vs +4.64%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
ITB has been the more volatile fund, with annualized monthly volatility of 31.2% compared with 14.5% 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 -85.4% for ITB 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 0.68. They move together some of the time, and apart the rest.
Fees and Cost Over Time
ITB 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, ITB currently yields 0.67% against 2.24% for VYM.
Holdings Overlap
31.5% of ITB's money is in holdings VYM also owns. 2.3% of VYM's money is in holdings ITB also owns.
The two portfolios partly overlap.
13 positions in common, counted across the 44 positions we hold weights for in ITB and 602 in VYM, against full books of 47 and 613.
What only one of them owns
Measured across the 44 and 602 positions we hold weights for.
VYM holds 556 positions ITB does not, 94.9% of the fund.
Largest: AVGO 7.29%, JPM 3.38%, JNJ 2.54%, XOM 2.36%, CAT 2.01%
Top Shared Holdings
| Stock | Weight in ITB | Weight in VYM | Difference |
|---|---|---|---|
| LENLennar Corporation Class B | 7.74% | 0.08% | 7.66% |
| HDHome Depot Inc/The | 4.94% | 1.46% | 3.48% |
| LOWLowe'S Companies Inc | 4.56% | 0.51% | 4.05% |
| MASMasco Corp. | 3.23% | 0.07% | 3.16% |
| OCOwens Corning | 2.44% | 0.05% | 2.39% |
| IBPInstalled Building Products Inc | 2.25% | 0.02% | 2.23% |
| KBHKb Home | 1.53% | 0.02% | 1.51% |
| FBINFortune Brands Innovations Inc | 1.31% | 0.03% | 1.28% |
| UFPIUniversal Forest Products Inc | 1.09% | 0.02% | 1.07% |
| LPXLouisiana-Pacific Corpcommon Stock | 1.02% | 0.02% | 1.00% |
31.5% of ITB 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, ITB or VYM?
ITB 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, ITB or VYM?
Over the past year ITB returned -17.35% vs +20.84% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), ITB annualized +4.64% vs +7.00% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, ITB or VYM?
ITB has been the more volatile fund at 31.2% annualized versus 14.5% for VYM. Worst drawdown: ITB -85.4% vs VYM -58.8%.
Should I hold both ITB and VYM?
ITB and VYM have a monthly-return correlation of 0.68, 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 ITB and VYM?
31.5% of ITB's money is in holdings VYM also owns. 2.3% of VYM's is in holdings ITB also owns. They hold 13 positions in common, counted across the 44 positions we hold weights for in ITB and 602 in VYM.
Which pays a higher dividend, ITB or VYM?
ITB yields 0.67% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.
Is VYM better than ITB?
VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window. VYM is less concentrated, with 25.9% of the fund in its ten largest positions against 67.8%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.