IYH vs VYM
iShares US Healthcare ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. IYH delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | IYH | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.38% | 0.04% | |
| AUM | $3.4B | $79.0B | |
| Dividend Yield | 1.19% | 2.86% | |
| Holdings | 104 | 568 | |
| YTD Return | +9.41% | +16.78% | |
| 1Y Return | +28.11% | +24.43% | |
| 3Y Return (annualized) | +8.95% | +18.60% | |
| 5Y Return (annualized) | +5.49% | +12.30% | |
| Volatility (annualized) | 13.8% | 14.6% | |
| Max Drawdown | -43.5% | -58.8% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jun 12, 2000 | Nov 10, 2006 |
IYH vs VYM Performance
iShares US Healthcare ETF (IYH) 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 IYH returned +28.11% while VYM returned +24.43%. Year to date, IYH is up 9.41% versus a gain of 16.78% for VYM.
Over three years, IYH compounded at +8.95% per year against +18.60% for VYM; over five years the annualized figures are +5.49% and +12.30% respectively. Across the full 20-year window we track, VYM has the edge at +7.11% annualized vs +7.09%. 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 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 -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 0.76. 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 1.19% against 2.86% for VYM.
Holdings Overlap
IYH and VYM share 17 holdings out of 642 unique holdings combined, representing a 12.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
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. On a $10,000 investment, that is $34 per year of difference.
Which performed better, IYH or VYM?
Over the past year IYH returned +28.11% vs +24.43% for VYM, so IYH leads on 1-year performance. Over the longest common window we track (20 years), IYH annualized +7.09% vs +7.11% for VYM. Past performance does not guarantee future results.
Which is riskier, IYH or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 13.8% for IYH. Worst drawdown: IYH -43.5% vs VYM -58.8%.
Should I hold both IYH and VYM?
IYH and VYM have a monthly-return correlation of 0.76, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IYH and VYM?
IYH and VYM share 17 common holdings with a 12.4% weight overlap. Combined, they hold 642 unique securities.
Which pays a higher dividend, IYH or VYM?
IYH yields 1.19% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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