IYH vs VYM
iShares US Healthcare ETF vs Vanguard High Dividend Yield ETF
Which is better, IYH or VYM?
Large Cap Blend against Large Cap Value.
VYM has a lower expense ratio. IYH led over 1Y and the full window, VYM over 3Y and 5Y. VYM is less concentrated, with 26.1% of the fund in its ten largest positions against 58.4%.
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 | IYH | VYM |
|---|---|---|
| Expense Ratio | 0.38% | 0.04%Best |
| AUM | $3.9B | $81.6B |
| Dividend Yield | 1.11% | 2.22% |
| Holdings | 104 | 613 |
| YTD Return | +9.80% | +11.35%Best |
| 1Y Return | +24.40%Best | +15.34% |
| 3Y Return (annualized) | +10.11% | +17.22%Best |
| 5Y Return (annualized) | +5.86% | +12.30%Best |
| Volatility (annualized) | 14.4%Best | 14.6% |
| Max Drawdown | -39.6%Best | -58.8% |
| $10,000 over 5 years | $13,294 | $17,861Best |
| Top 10 Weight | 58.4% | 26.1%Best |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | 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 18, 2026 (19.8 years).
IYH 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.
IYH vs VYM Performance
iShares US Healthcare ETF (IYH) 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 IYH returned +24.40% while VYM returned +15.34%. Year to date, IYH is up 9.80% versus a gain of 11.35% for VYM.
Over three years, IYH compounded at +10.11% per year against +17.22% for VYM; over five years the annualized figures are +5.86% and +12.30% respectively. Across the full 20-year window we track, IYH has the edge at +9.26% annualized vs +6.82%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 14.4% 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 -39.6% for IYH 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 0.75. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IYH 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, IYH currently yields 1.11% against 2.22% for VYM.
Holdings Overlap
49.9% of IYH's money is in holdings VYM also owns. 12.3% of VYM's money is in holdings IYH also owns.
The two portfolios partly overlap.
20 positions in common, counted across the 101 positions we hold weights for in IYH and 557 in VYM, against full books of 104 and 613.
What only one of them owns
Our book lists 508 positions for VYM that do not appear in our book for IYH (84.8% of the fund), and 76 for IYH that do not appear in VYM (48.9%).
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 IYH | Weight in VYM | Difference |
|---|---|---|---|
| JNJJohnson & Johnson - Common | 10.02% | 2.51% | 7.51% |
| ABBVAbbvie Inc. | 7.10% | 1.80% | 5.30% |
| MRKMerck & Company Inc | 5.72% | 1.31% | 4.41% |
| UNHUnitedhealth Group Incorporated | 5.50% | 1.52% | 3.98% |
| AMGNAmgen Inc. | 3.63% | 0.78% | 2.85% |
| ABTAbbott Laboratories | 2.99% | 0.74% | 2.25% |
| GILDGilead Sciences | 2.84% | 0.66% | 2.18% |
| PFEPfizer Inc | 2.53% | 0.58% | 1.95% |
| BMYBristol-Myers Squibb Co. | 2.13% | 0.54% | 1.59% |
| MDTMedtronic Plc Ordinary Shares | 1.82% | 0.44% | 1.38% |
49.9% of IYH 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, IYH or VYM?
IYH 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, IYH or VYM?
Over the past year IYH returned +24.40% vs +15.34% for VYM, so IYH leads on 1-year performance. Over the longest common window we track (20 years), IYH annualized +9.26% vs +6.82% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, IYH or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 14.4% for IYH. Worst drawdown: IYH -39.6% vs VYM -58.8%.
Should I hold both IYH and VYM?
IYH and VYM have a monthly-return correlation of 0.75, 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 IYH and VYM?
49.9% of IYH's money is in holdings VYM also owns. 12.3% of VYM's is in holdings IYH also owns. They hold 20 positions in common, counted across the 101 positions we hold weights for in IYH and 557 in VYM.
Which pays a higher dividend, IYH or VYM?
IYH yields 1.11% while VYM yields 2.22%, so VYM currently pays the higher dividend yield.
Is VYM better than IYH?
VYM has a lower expense ratio. IYH led over 1Y and the full window, VYM over 3Y and 5Y. VYM is less concentrated, with 26.1% of the fund in its ten largest positions against 58.4%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.