IYE vs VYM
iShares US Energy ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. IYE delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | IYE | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.38% | 0.04% | |
| AUM | $1.7B | $79.0B | |
| Dividend Yield | 2.36% | 2.86% | |
| Holdings | 44 | 568 | |
| YTD Return | +34.83% | +16.53% | |
| 1Y Return | +47.47% | +25.03% | |
| 3Y Return (annualized) | +14.17% | +18.54% | |
| 5Y Return (annualized) | +22.73% | +12.25% | |
| Volatility (annualized) | 24.8% | 14.6% | |
| Max Drawdown | -78.1% | -58.8% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jun 12, 2000 | Nov 10, 2006 |
IYE vs VYM Performance
iShares US Energy ETF (IYE) 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 IYE returned +47.47% while VYM returned +25.03%. Year to date, IYE is up 34.83% versus a gain of 16.53% for VYM.
Over three years, IYE compounded at +14.17% per year against +18.54% for VYM; over five years the annualized figures are +22.73% and +12.25% respectively. Across the full 20-year window we track, VYM has the edge at +7.10% annualized vs +5.85%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IYE has been the more volatile fund, with annualized monthly volatility of 24.8% 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 -78.1% for IYE 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 0.69. They move independently enough that combining them can meaningfully diversify a portfolio.
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 2.36% against 2.86% for VYM.
Holdings Overlap
IYE and VYM share 30 holdings out of 569 unique holdings combined, representing a 9.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
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. On a $10,000 investment, that is $34 per year of difference.
Which performed better, IYE or VYM?
Over the past year IYE returned +47.47% vs +25.03% for VYM, so IYE leads on 1-year performance. Over the longest common window we track (20 years), IYE annualized +5.85% vs +7.10% for VYM. Past performance does not guarantee future results.
Which is riskier, IYE or VYM?
IYE has been the more volatile fund at 24.8% annualized versus 14.6% 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 combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IYE and VYM?
IYE and VYM share 30 common holdings with a 9.1% weight overlap. Combined, they hold 569 unique securities.
Which pays a higher dividend, IYE or VYM?
IYE yields 2.36% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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