IXP vs VYM

Quick Verdict

VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.

Lower Fees: VYMHigher Returns: VYMMore Diversified: VYM

Side-by-Side Comparison

MetricIXPVYMWinner
Expense Ratio0.40%0.04%
AUM$522M$79.0B
Dividend Yield3.48%2.86%
Holdings86568
YTD Return-1.86%+16.10%
1Y Return+5.28%+25.99%
3Y Return (annualized)+21.37%+18.29%
5Y Return (annualized)+8.17%+12.35%
Volatility (annualized)16.6%14.6%
Max Drawdown-53.1%-58.8%
Fund FamilyiShares by BlackRock (US)Vanguard (US)
CategoryEquityEquity
InceptionNov 12, 2001Nov 10, 2006

IXP vs VYM Performance

iShares Global Comm Services ETF (IXP) 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 IXP returned +5.28% while VYM returned +25.99%. Year to date, IXP is down 1.86% versus a gain of 16.10% for VYM.

Over three years, IXP compounded at +21.37% per year against +18.29% for VYM; over five years the annualized figures are +8.17% and +12.35% respectively. Across the full 20-year window we track, VYM has the edge at +7.08% annualized vs +3.65%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

IXP has been the more volatile fund, with annualized monthly volatility of 16.6% 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 -53.1% for IXP 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 0.73. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

IXP charges 0.40% per year while VYM charges 0.04%. On a $10,000 position that is $40 vs $4 annually, a gap of $36 per year that compounds over a long holding period. On income, IXP currently yields 3.48% against 2.86% for VYM.

Holdings Overlap

2.5%overlap

IXP and VYM share 6 holdings out of 617 unique holdings combined, representing a 2.5% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in IXPWeight in VYMDifference
VZ4.09%0.93%3.16%
T3.79%0.85%2.94%
CMCSA2.21%0.49%1.72%
OMCProProPro
FOXAProProPro
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Frequently Asked Questions

Which is cheaper, IXP or VYM?

IXP has an expense ratio of 0.40% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $36 per year of difference.

Which performed better, IXP or VYM?

Over the past year IXP returned +5.28% vs +25.99% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), IXP annualized +3.65% vs +7.08% for VYM. Past performance does not guarantee future results.

Which is riskier, IXP or VYM?

IXP has been the more volatile fund at 16.6% annualized versus 14.6% for VYM. Worst drawdown: IXP -53.1% vs VYM -58.8%.

Should I hold both IXP and VYM?

IXP and VYM have a monthly-return correlation of 0.73, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between IXP and VYM?

IXP and VYM share 6 common holdings with a 2.5% weight overlap. Combined, they hold 617 unique securities.

Which pays a higher dividend, IXP or VYM?

IXP yields 3.48% while VYM yields 2.86%, so IXP currently pays the higher dividend yield.

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