IYH vs VTI
iShares US Healthcare ETF vs Vanguard Morningstar Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. IYH delivered stronger 1-year returns. VTI offers more diversification with 3,543 holdings.
Side-by-Side Comparison
| Metric | IYH | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.38% | 0.03% | |
| AUM | $3.7B | $666.9B | |
| Dividend Yield | 1.16% | 1.07% | |
| Holdings | 104 | 3,543 | |
| YTD Return | +8.70% | +14.82% | |
| 1Y Return | +26.70% | +22.43% | |
| 3Y Return (annualized) | +8.83% | +21.93% | |
| 5Y Return (annualized) | +5.16% | +12.34% | |
| Volatility (annualized) | 13.8% | 15.4% | |
| Max Drawdown | -43.5% | -56.6% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jun 12, 2000 | May 24, 2001 |
IYH vs VTI Performance
iShares US Healthcare ETF (IYH) is a ETF from iShares by BlackRock (US) and Vanguard Morningstar Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year IYH returned +26.70% while VTI returned +22.43%. Year to date, IYH is up 8.70% versus a gain of 14.82% for VTI.
Over three years, IYH compounded at +8.83% per year against +21.93% for VTI; over five years the annualized figures are +5.16% and +12.34% respectively. Across the full 25-year window we track, VTI has the edge at +8.16% annualized vs +7.06%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTI has been the more volatile fund, with annualized monthly volatility of 15.4% 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 -56.6% for VTI. 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 0.74. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IYH charges 0.38% per year while VTI 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 1.07% for VTI.
Holdings Overlap
IYH and VTI share 85 holdings out of 2803 unique holdings combined, representing a 7.9% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, IYH or VTI?
IYH has an expense ratio of 0.38% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $35 per year of difference.
Which performed better, IYH or VTI?
Over the past year IYH returned +26.70% vs +22.43% for VTI, so IYH leads on 1-year performance. Over the longest common window we track (25 years), IYH annualized +7.06% vs +8.16% for VTI. Past performance does not guarantee future results.
Which is riskier, IYH or VTI?
VTI has been the more volatile fund at 15.4% annualized versus 13.8% for IYH. Worst drawdown: IYH -43.5% vs VTI -56.6%.
Should I hold both IYH and VTI?
IYH and VTI have a monthly-return correlation of 0.74, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IYH and VTI?
IYH and VTI share 85 common holdings with a 7.9% weight overlap. Combined, they hold 2803 unique securities.
Which pays a higher dividend, IYH or VTI?
IYH yields 1.16% while VTI yields 1.07%, so IYH currently pays the higher dividend yield.
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