IWY vs VYM
iShares Russell Top 200 Growth 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 616 holdings.
Side-by-Side Comparison
| Metric | IWY | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.20% | 0.04% | |
| AUM | $16.5B | $81.6B | |
| Dividend Yield | 0.36% | 2.24% | |
| Holdings | 105 | 616 | |
| YTD Return | +2.69% | +15.42% | |
| 1Y Return | +10.04% | +22.36% | |
| 3Y Return (annualized) | +22.11% | +19.06% | |
| 5Y Return (annualized) | +12.69% | +12.20% | |
| Volatility (annualized) | 16.1% | 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 |
IWY vs VYM Performance
iShares Russell Top 200 Growth ETF (IWY) 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 IWY returned +10.04% while VYM returned +22.36%. Year to date, IWY is up 2.69% versus a gain of 15.42% for VYM.
Over three years, IWY compounded at +22.11% per year against +19.06% for VYM; over five years the annualized figures are +12.69% and +12.20% respectively. Across the full 17-year window we track, IWY has the edge at +15.65% annualized vs +7.04%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IWY has been the more volatile fund, with annualized monthly volatility of 16.1% 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 -32.7% for IWY 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 0.75. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IWY charges 0.20% per year while VYM charges 0.04%. On a $10,000 position that is $20 vs $4 annually, a gap of $16 per year that compounds over a long holding period. On income, IWY currently yields 0.36% against 2.24% for VYM.
Holdings Overlap
IWY and VYM share 28 holdings out of 677 unique holdings combined, representing a 12.7% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, IWY or VYM?
IWY has an expense ratio of 0.20% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $16 per year of difference.
Which performed better, IWY or VYM?
Over the past year IWY returned +10.04% vs +22.36% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (17 years), IWY annualized +15.65% vs +7.04% for VYM. Past performance does not guarantee future results.
Which is riskier, IWY or VYM?
IWY has been the more volatile fund at 16.1% annualized versus 14.6% for VYM. Worst drawdown: IWY -32.7% vs VYM -58.8%.
Should I hold both IWY and VYM?
IWY and VYM have a monthly-return correlation of 0.75, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IWY and VYM?
IWY and VYM share 28 common holdings with a 12.7% weight overlap. Combined, they hold 677 unique securities.
Which pays a higher dividend, IWY or VYM?
IWY yields 0.36% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.
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