IYE vs VYM
iShares US Energy ETF vs Vanguard High Dividend Yield ETF
Which is better, IYE or VYM?
Each has led over a different period.
VYM has a lower expense ratio. IYE led over 1Y and 5Y, VYM over 3Y and the full window. VYM is less concentrated, with 25.9% of the fund in its ten largest positions against 70.5%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | IYE | VYM |
|---|---|---|
| Expense Ratio | 0.38% | 0.04%Best |
| AUM | $1.9B | $81.6B |
| Dividend Yield | 1.98% | 2.22% |
| Holdings | 44 | 613 |
| YTD Return | +43.19%Best | +13.91% |
| 1Y Return | +48.77%Best | +17.57% |
| 3Y Return (annualized) | +15.22% | +18.12%Best |
| 5Y Return (annualized) | +24.57%Best | +12.17% |
| Volatility (annualized) | 26.1% | 14.5%Best |
| Max Drawdown | -78.1% | -58.8%Best |
| $10,000 over 5 years | $29,996Best | $17,758 |
| Top 10 Weight | 70.5% | 25.9%Best |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Value | Large Cap Value |
| Inception | Jun 12, 2000 | Nov 10, 2006 |
Volatility and max drawdown are measured over the window both funds cover: Nov 16, 2006 to Sep 11, 2026 (19.8 years).
IYE vs VYM growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 19.8 years both funds cover.
IYE vs VYM Performance
iShares US Energy ETF (IYE) is an ETF from iShares by BlackRock (US) and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year IYE returned +48.77% while VYM returned +17.57%. Year to date, IYE is up 43.19% versus a gain of 13.91% for VYM.
Over three years, IYE compounded at +15.22% per year against +18.12% for VYM; over five years the annualized figures are +24.57% and +12.17% respectively. Across the full 20-year window we track, VYM has the edge at +6.95% annualized vs +4.69%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IYE has been the more volatile fund, with annualized monthly volatility of 26.1% compared with 14.5% 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 -78.1% for IYE and -58.8% for VYM. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.69. They move together some of the time, and apart the rest.
Fees and Cost Over Time
IYE charges 0.38% per year while VYM charges 0.04%. On a $10,000 position that is $38 vs $4 annually, a gap of $34 per year that compounds over a long holding period. On income, IYE currently yields 1.98% against 2.22% for VYM.
Holdings Overlap
92.8% of IYE's money is in holdings VYM also owns. 8.3% of VYM's money is in holdings IYE also owns.
Most of IYE is already inside VYM. Owning both mostly buys the same companies twice.
The two holdings books were reported 62 days apart, IYE as of Aug 31, 2026 and VYM as of Jun 30, 2026, so some of the difference between them is the time between the two reports rather than the funds.
31 positions in common, counted across the 41 positions we hold weights for in IYE and 603 in VYM, against full books of 44 and 613.
What only one of them owns
Our book lists 539 positions for VYM that do not appear in our book for IYE (89.3% of the fund), and 9 for IYE that do not appear in VYM (5.5%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in IYE | Weight in VYM | Difference |
|---|---|---|---|
| XOMExxon Mobil Corp. | 22.02% | 2.36% | 19.66% |
| CVXChevron Corp. | 15.69% | 1.28% | 14.41% |
| COPConocophillips Co | 6.63% | 0.53% | 6.10% |
| MPCMarathon Petroleum Corp. | 4.51% | 0.31% | 4.20% |
| VLOValero Energy Corp. | 4.36% | 0.32% | 4.04% |
| PSXPhillips 66 | 4.06% | 0.28% | 3.78% |
| WMBWilliams Cos. Inc. | 3.75% | 0.38% | 3.37% |
| SLBSchlumberger Nv. | 3.69% | 0.29% | 3.40% |
| EOGEog Resources Inc | 3.18% | 0.29% | 2.89% |
| KMIKinder Morgan Inc./de | 2.57% | 0.26% | 2.31% |
92.8% of IYE is already inside VYM.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, IYE or VYM?
IYE has an expense ratio of 0.38% while VYM charges 0.04%. VYM is the cheaper option, by $34 a year on a $10,000 investment.
Which performed better, IYE or VYM?
Over the past year IYE returned +48.77% vs +17.57% for VYM, so IYE leads on 1-year performance. Over the longest common window we track (20 years), IYE annualized +4.69% vs +6.95% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, IYE or VYM?
IYE has been the more volatile fund at 26.1% annualized versus 14.5% for VYM. Worst drawdown: IYE -78.1% vs VYM -58.8%.
Should I hold both IYE and VYM?
IYE and VYM have a monthly-return correlation of 0.69, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between IYE and VYM?
92.8% of IYE's money is in holdings VYM also owns. 8.3% of VYM's is in holdings IYE also owns. They hold 31 positions in common, counted across the 41 positions we hold weights for in IYE and 603 in VYM.
Which pays a higher dividend, IYE or VYM?
IYE yields 1.98% while VYM yields 2.22%, so VYM currently pays the higher dividend yield.
Is VYM better than IYE?
VYM has a lower expense ratio. IYE led over 1Y and 5Y, VYM over 3Y and the full window. VYM is less concentrated, with 25.9% of the fund in its ten largest positions against 70.5%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.