IWC vs VYM
iShares Microcap ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. IWC delivered stronger 1-year returns. IWC offers more diversification with 1279 holdings.
Side-by-Side Comparison
| Metric | IWC | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.60% | 0.04% | |
| AUM | $1.4B | $79.0B | |
| Dividend Yield | 0.94% | 2.86% | |
| Holdings | 1,380 | 568 | |
| YTD Return | +24.78% | +16.10% | |
| 1Y Return | +50.84% | +25.99% | |
| 3Y Return (annualized) | +22.73% | +18.29% | |
| 5Y Return (annualized) | +7.41% | +12.35% | |
| Volatility (annualized) | 21.6% | 14.6% | |
| Max Drawdown | -65.2% | -58.8% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Aug 12, 2005 | Nov 10, 2006 |
IWC vs VYM Performance
iShares Microcap ETF (IWC) 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 IWC returned +50.84% while VYM returned +25.99%. Year to date, IWC is up 24.78% versus a gain of 16.10% for VYM.
Over three years, IWC compounded at +22.73% per year against +18.29% for VYM; over five years the annualized figures are +7.41% and +12.35% respectively. Across the full 20-year window we track, IWC has the edge at +7.08% annualized vs +7.08%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IWC has been the more volatile fund, with annualized monthly volatility of 21.6% 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 -65.2% for IWC 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 0.79. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IWC charges 0.60% per year while VYM charges 0.04%. On a $10,000 position that is $60 vs $4 annually, a gap of $56 per year that compounds over a long holding period. On income, IWC currently yields 0.94% against 2.86% for VYM.
Holdings Overlap
IWC and VYM share 0 holdings out of 1837 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, IWC or VYM?
IWC has an expense ratio of 0.60% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $56 per year of difference.
Which performed better, IWC or VYM?
Over the past year IWC returned +50.84% vs +25.99% for VYM, so IWC leads on 1-year performance. Over the longest common window we track (20 years), IWC annualized +7.08% vs +7.08% for VYM. Past performance does not guarantee future results.
Which is riskier, IWC or VYM?
IWC has been the more volatile fund at 21.6% annualized versus 14.6% for VYM. Worst drawdown: IWC -65.2% vs VYM -58.8%.
Should I hold both IWC and VYM?
IWC and VYM have a monthly-return correlation of 0.79, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IWC and VYM?
IWC and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1837 unique securities.
Which pays a higher dividend, IWC or VYM?
IWC yields 0.94% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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