IYH vs SPY
iShares US Healthcare ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. IYH delivered stronger 1-year returns. SPY offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | IYH | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.38% | 0.09% | |
| AUM | $3.7B | $821.1B | |
| Dividend Yield | 1.16% | 1.01% | |
| Holdings | 104 | 505 | |
| YTD Return | +13.69% | +12.68% | |
| 1Y Return | +29.73% | +21.82% | |
| 3Y Return (annualized) | +11.05% | +21.98% | |
| 5Y Return (annualized) | +5.94% | +12.89% | |
| Volatility (annualized) | 13.8% | 15.3% | |
| Max Drawdown | -43.5% | -56.5% | |
| Fund Family | iShares by BlackRock (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Jun 12, 2000 | Jan 22, 1993 |
IYH vs SPY Performance
iShares US Healthcare ETF (IYH) is a ETF from iShares by BlackRock (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year IYH returned +29.73% while SPY returned +21.82%. Year to date, IYH is up 13.69% versus a gain of 12.68% for SPY.
Over three years, IYH compounded at +11.05% per year against +21.98% for SPY; over five years the annualized figures are +5.94% and +12.89% respectively. Across the full 26-year window we track, SPY has the edge at +8.81% annualized vs +7.24%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 13.8% for IYH. 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 -43.5% for IYH and -56.5% for SPY. 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 0.71. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IYH charges 0.38% per year while SPY charges 0.09%. On a $10,000 position that is $38 vs $9 annually, a gap of $29 per year that compounds over a long holding period. On income, IYH currently yields 1.16% against 1.01% for SPY.
Holdings Overlap
IYH and SPY share 55 holdings out of 550 unique holdings combined, representing a 8.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, IYH or SPY?
IYH has an expense ratio of 0.38% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $29 per year of difference.
Which performed better, IYH or SPY?
Over the past year IYH returned +29.73% vs +21.82% for SPY, so IYH leads on 1-year performance. Over the longest common window we track (26 years), IYH annualized +7.24% vs +8.81% for SPY. Past performance does not guarantee future results.
Which is riskier, IYH or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 13.8% for IYH. Worst drawdown: IYH -43.5% vs SPY -56.5%.
Should I hold both IYH and SPY?
IYH and SPY have a monthly-return correlation of 0.71, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IYH and SPY?
IYH and SPY share 55 common holdings with a 8.2% weight overlap. Combined, they hold 550 unique securities.
Which pays a higher dividend, IYH or SPY?
IYH yields 1.16% while SPY yields 1.01%, so IYH currently pays the higher dividend yield.
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