IWL vs VYM
iShares Russell Top 200 ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | IWL | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.15% | 0.04% | |
| AUM | $2.2B | $79.0B | |
| Dividend Yield | 0.85% | 2.86% | |
| Holdings | 205 | 568 | |
| YTD Return | +12.24% | +16.16% | |
| 1Y Return | +21.69% | +26.05% | |
| 3Y Return (annualized) | +22.33% | +18.43% | |
| 5Y Return (annualized) | +13.73% | +12.21% | |
| Volatility (annualized) | 14.2% | 14.6% | |
| Max Drawdown | -32.7% | -58.8% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Sep 22, 2009 | Nov 10, 2006 |
IWL vs VYM Performance
iShares Russell Top 200 ETF (IWL) 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 IWL returned +21.69% while VYM returned +26.05%. Year to date, IWL is up 12.24% versus a gain of 16.16% for VYM.
Over three years, IWL compounded at +22.33% per year against +18.43% for VYM; over five years the annualized figures are +13.73% and +12.21% respectively. Across the full 17-year window we track, IWL has the edge at +13.24% annualized vs +7.09%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 14.2% for IWL. 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 -32.7% for IWL 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 0.88. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IWL charges 0.15% per year while VYM charges 0.04%. On a $10,000 position that is $15 vs $4 annually, a gap of $11 per year that compounds over a long holding period. On income, IWL currently yields 0.85% against 2.86% for VYM.
Holdings Overlap
IWL and VYM share 92 holdings out of 668 unique holdings combined, representing a 31.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, IWL or VYM?
IWL has an expense ratio of 0.15% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $11 per year of difference.
Which performed better, IWL or VYM?
Over the past year IWL returned +21.69% vs +26.05% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (17 years), IWL annualized +13.24% vs +7.09% for VYM. Past performance does not guarantee future results.
Which is riskier, IWL or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 14.2% for IWL. Worst drawdown: IWL -32.7% vs VYM -58.8%.
Should I hold both IWL and VYM?
IWL and VYM have a monthly-return correlation of 0.88, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IWL and VYM?
IWL and VYM share 92 common holdings with a 31.0% weight overlap. Combined, they hold 668 unique securities.
Which pays a higher dividend, IWL or VYM?
IWL yields 0.85% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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