IYJ vs VYM
iShares US Industrials ETF vs Vanguard High Dividend Yield ETF
Which is better, IYJ or VYM?
Large Cap Blend against Large Cap Value.
VYM has a lower expense ratio. IYJ led over the full window, VYM over 1Y, 3Y and 5Y. The two have moved almost in lockstep, correlation 0.92. VYM is less concentrated, with 26.1% of the fund in its ten largest positions against 36.6%.
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 | IYJ | VYM |
|---|---|---|
| Expense Ratio | 0.38% | 0.04%Best |
| AUM | $1.9B | $81.6B |
| Dividend Yield | 0.73% | 2.22% |
| Holdings | 215 | 613 |
| YTD Return | +3.68% | +11.71%Best |
| 1Y Return | +7.84% | +16.24%Best |
| 3Y Return (annualized) | +14.95% | +17.24%Best |
| 5Y Return (annualized) | +7.90% | +11.86%Best |
| Volatility (annualized) | 18.9% | 14.6%Best |
| Max Drawdown | -62.8% | -58.8%Best |
| $10,000 over 5 years | $14,625 | $17,514Best |
| Top 10 Weight | 36.6% | 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 16, 2026 (19.8 years).
IYJ 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.
IYJ vs VYM Performance
iShares US Industrials ETF (IYJ) 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 IYJ returned +7.84% while VYM returned +16.24%. Year to date, IYJ is up 3.68% versus a gain of 11.71% for VYM.
Over three years, IYJ compounded at +14.95% per year against +17.24% for VYM; over five years the annualized figures are +7.90% and +11.86% respectively. Across the full 20-year window we track, IYJ has the edge at +8.45% annualized vs +6.84%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IYJ has been the more volatile fund, with annualized monthly volatility of 18.9% compared with 14.6% for VYM. 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 -62.8% for IYJ 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 0.92. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
IYJ 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, IYJ currently yields 0.73% against 2.22% for VYM.
Holdings Overlap
38.2% of IYJ's money is in holdings VYM also owns. 13.0% of VYM's money is in holdings IYJ also owns.
The two portfolios partly overlap.
71 positions in common, counted across the 212 positions we hold weights for in IYJ and 557 in VYM, against full books of 215 and 613.
What only one of them owns
Our book lists 459 positions for VYM that do not appear in our book for IYJ (85.5% of the fund), and 136 for IYJ that do not appear in VYM (60.6%).
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 IYJ | Weight in VYM | Difference |
|---|---|---|---|
| CATCaterpillar, Inc. | 4.41% | 1.50% | 2.91% |
| RTX:MXUnited Technologies Corp. | 3.41% | 1.18% | 2.23% |
| UNPUnion Pacific Corp | 2.17% | 0.70% | 1.47% |
| ETNEaton Corp Plc | 1.90% | 0.65% | 1.25% |
| COFCapital One Financial Corp. | 1.63% | 0.53% | 1.10% |
| LMTLockheed Martin Corp | 1.39% | 0.48% | 0.91% |
| ADPAutomatic Data Processing, Inc. | 1.40% | 0.43% | 0.97% |
| GDGeneral Dynamics Corp. | 1.16% | 0.40% | 0.76% |
| MMM3M Company | 1.09% | 0.37% | 0.72% |
| JCIJohnson Controls International Plc | 1.03% | 0.36% | 0.67% |
38.2% of IYJ 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, IYJ or VYM?
IYJ 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, IYJ or VYM?
Over the past year IYJ returned +7.84% vs +16.24% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), IYJ annualized +8.45% vs +6.84% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, IYJ or VYM?
IYJ has been the more volatile fund at 18.9% annualized versus 14.6% for VYM. Worst drawdown: IYJ -62.8% vs VYM -58.8%.
Should I hold both IYJ and VYM?
IYJ and VYM have a monthly-return correlation of 0.92, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
What is the holdings overlap between IYJ and VYM?
38.2% of IYJ's money is in holdings VYM also owns. 13.0% of VYM's is in holdings IYJ also owns. They hold 71 positions in common, counted across the 212 positions we hold weights for in IYJ and 557 in VYM.
Which pays a higher dividend, IYJ or VYM?
IYJ yields 0.73% while VYM yields 2.22%, so VYM currently pays the higher dividend yield.
Is VYM better than IYJ?
VYM has a lower expense ratio. IYJ led over the full window, VYM over 1Y, 3Y and 5Y. The two have moved almost in lockstep, correlation 0.92. VYM is less concentrated, with 26.1% of the fund in its ten largest positions against 36.6%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.