IYH vs VOO
iShares US Healthcare ETF vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. IYH delivered stronger 1-year returns. VOO offers more diversification with 509 holdings.
Side-by-Side Comparison
| Metric | IYH | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.38% | 0.03% | |
| AUM | $3.7B | $997.4B | |
| Dividend Yield | 1.16% | 1.08% | |
| Holdings | 104 | 509 | |
| YTD Return | +12.29% | +12.25% | |
| 1Y Return | +27.73% | +20.92% | |
| 3Y Return (annualized) | +10.48% | +21.79% | |
| 5Y Return (annualized) | +5.71% | +13.05% | |
| Volatility (annualized) | 13.8% | 14.1% | |
| Max Drawdown | -43.5% | -34.3% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jun 12, 2000 | Sep 7, 2010 |
IYH vs VOO Performance
iShares US Healthcare ETF (IYH) is a ETF from iShares by BlackRock (US) and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year IYH returned +27.73% while VOO returned +20.92%. Year to date, IYH is up 12.29% versus a gain of 12.25% for VOO.
Over three years, IYH compounded at +10.48% per year against +21.79% for VOO; over five years the annualized figures are +5.71% and +13.05% respectively. Across the full 16-year window we track, VOO has the edge at +13.45% annualized vs +7.19%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VOO has been the more volatile fund, with annualized monthly volatility of 14.1% 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 -34.3% for VOO. 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
IYH charges 0.38% per year while VOO charges 0.03%. On a $10,000 position that is $38 vs $3 annually, a gap of $35 per year that compounds over a long holding period. On income, IYH currently yields 1.16% against 1.08% for VOO.
Holdings Overlap
IYH and VOO share 54 holdings out of 552 unique holdings combined, representing a 8.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, IYH or VOO?
IYH has an expense ratio of 0.38% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $35 per year of difference.
Which performed better, IYH or VOO?
Over the past year IYH returned +27.73% vs +20.92% for VOO, so IYH leads on 1-year performance. Over the longest common window we track (16 years), IYH annualized +7.19% vs +13.45% for VOO. Past performance does not guarantee future results.
Which is riskier, IYH or VOO?
VOO has been the more volatile fund at 14.1% annualized versus 13.8% for IYH. Worst drawdown: IYH -43.5% vs VOO -34.3%.
Should I hold both IYH and VOO?
IYH and VOO 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 IYH and VOO?
IYH and VOO share 54 common holdings with a 8.4% weight overlap. Combined, they hold 552 unique securities.
Which pays a higher dividend, IYH or VOO?
IYH yields 1.16% while VOO yields 1.08%, so IYH currently pays the higher dividend yield.
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