IVV vs IYM
iShares Core S&P 500 ETF vs iShares US Basic Materials ETF
Quick Verdict
IVV has a lower expense ratio. IYM delivered stronger 1-year returns. IVV offers more diversification with 508 holdings.
Side-by-Side Comparison
| Metric | IVV | IYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.38% | |
| AUM | $907.0B | $1.0B | |
| Dividend Yield | 1.10% | 1.30% | |
| Holdings | 508 | 43 | |
| YTD Return | +13.22% | +21.90% | |
| 1Y Return | +21.62% | +32.72% | |
| 3Y Return (annualized) | +22.17% | +15.27% | |
| 5Y Return (annualized) | +13.42% | +9.85% | |
| Volatility (annualized) | 15.1% | 22.2% | |
| Max Drawdown | -56.5% | -68.1% | |
| Fund Family | iShares by BlackRock (US) | iShares by BlackRock (US) | |
| Category | Equity | Equity | |
| Inception | May 15, 2000 | Jun 12, 2000 |
IVV vs IYM Performance
iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US) and iShares US Basic Materials ETF (IYM) is a ETF from iShares by BlackRock (US). Over the past year IVV returned +21.62% while IYM returned +32.72%. Year to date, IVV is up 13.22% versus a gain of 21.90% for IYM.
Over three years, IVV compounded at +22.17% per year against +15.27% for IYM; over five years the annualized figures are +13.42% and +9.85% respectively. Across the full 26-year window we track, IYM has the edge at +7.05% annualized vs +7.02%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IYM has been the more volatile fund, with annualized monthly volatility of 22.2% compared with 15.1% for IVV. 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 -56.5% for IVV and -68.1% for IYM. 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 0.80. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IVV charges 0.03% per year while IYM charges 0.38%. On a $10,000 position that is $3 vs $38 annually, a gap of $35 per year that compounds over a long holding period. On income, IVV currently yields 1.10% against 1.30% for IYM.
Holdings Overlap
IVV and IYM share 16 holdings out of 529 unique holdings combined, representing a 1.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, IVV or IYM?
IVV has an expense ratio of 0.03% while IYM charges 0.38%. IVV is the cheaper option. On a $10,000 investment, that is $35 per year of difference.
Which performed better, IVV or IYM?
Over the past year IVV returned +21.62% vs +32.72% for IYM, so IYM leads on 1-year performance. Over the longest common window we track (26 years), IVV annualized +7.02% vs +7.05% for IYM. Past performance does not guarantee future results.
Which is riskier, IVV or IYM?
IYM has been the more volatile fund at 22.2% annualized versus 15.1% for IVV. Worst drawdown: IVV -56.5% vs IYM -68.1%.
Should I hold both IVV and IYM?
IVV and IYM have a monthly-return correlation of 0.80, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IVV and IYM?
IVV and IYM share 16 common holdings with a 1.3% weight overlap. Combined, they hold 529 unique securities.
Which pays a higher dividend, IVV or IYM?
IVV yields 1.10% while IYM yields 1.30%, so IYM currently pays the higher dividend yield.
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