IYK vs VYM

IYK vs VYM

Which is better, IYK or VYM?

Each has led over a different period.

VYM has a lower expense ratio. IYK led over the full window, VYM over 1Y, 3Y and 5Y. VYM is less concentrated, with 25.9% of the fund in its ten largest positions against 66.0%.

Lower Fees: VYMHigher Returns: splitLess Concentrated: VYM

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

MetricIYKVYM
Expense Ratio0.38%0.04%Best
AUM$1.4B$81.6B
Dividend Yield2.52%2.24%
Holdings57613
YTD Return+12.79%+14.82%Best
1Y Return+9.41%+20.84%Best
3Y Return (annualized)+7.78%+18.64%Best
5Y Return (annualized)+6.31%+12.28%Best
Volatility (annualized)13.8%Best14.5%
Max Drawdown-44.1%Best-58.8%
$10,000 over 5 years$13,579$17,845Best
Top 10 Weight66.0%25.9%Best
Fund FamilyiShares by BlackRock (US)Vanguard (US)
CategoryEquityEquity
StyleLarge Cap ValueLarge Cap Value
InceptionJun 12, 2000Nov 10, 2006

Volatility and max drawdown are measured over the window both funds cover: Nov 16, 2006 to Sep 4, 2026 (19.8 years).

IYK 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.

IYK vs VYM Performance

iShares US Consumer Staples ETF (IYK) 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 IYK returned +9.41% while VYM returned +20.84%. Year to date, IYK is up 12.79% versus a gain of 14.82% for VYM.

Over three years, IYK compounded at +7.78% per year against +18.64% for VYM; over five years the annualized figures are +6.31% and +12.28% respectively. Across the full 20-year window we track, IYK has the edge at +7.62% annualized vs +7.00%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VYM has been the more volatile fund, with annualized monthly volatility of 14.5% compared with 13.8% for IYK. 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 -44.1% for IYK 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 0.85. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

IYK 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, IYK currently yields 2.52% against 2.24% for VYM.

Holdings Overlap

IYK already in VYM81.2%
VYM already in IYK8.3%

81.2% of IYK's money is in holdings VYM also owns. 8.3% of VYM's money is in holdings IYK also owns.

Most of IYK is already inside VYM. Owning both mostly buys the same companies twice.

34 positions in common, counted across the 54 positions we hold weights for in IYK and 603 in VYM, against full books of 57 and 613.

What only one of them owns

Our book lists 537 positions for VYM that do not appear in our book for IYK (89.1% of the fund), and 19 for IYK that do not appear in VYM (18.5%).

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

StockWeight in IYKWeight in VYMDifference
PGProcter & Gamble Company13.01%1.42%11.59%
KOCoca Cola Co.12.86%1.31%11.55%
PMPhilip Morris International Inc.11.27%1.17%10.10%
PEPPepsico Inc.7.35%0.77%6.58%
CVSCvs Health Corp.4.34%0.55%3.79%
MOAltria Group Inc4.01%0.50%3.51%
MDLZMondelez International Inc Com A Npv3.22%0.31%2.91%
CLColgate-Palmolive Co3.07%0.30%2.77%
CAHCardinal Health Inc.2.54%0.23%2.31%
SYYSysco Corp1.83%0.17%1.66%

81.2% of IYK 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.

IYKVYM

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Frequently Asked Questions

Which is cheaper, IYK or VYM?

IYK 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, IYK or VYM?

Over the past year IYK returned +9.41% vs +20.84% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), IYK annualized +7.62% vs +7.00% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, IYK or VYM?

VYM has been the more volatile fund at 14.5% annualized versus 13.8% for IYK. Worst drawdown: IYK -44.1% vs VYM -58.8%.

Should I hold both IYK and VYM?

IYK and VYM have a monthly-return correlation of 0.85, 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 IYK and VYM?

81.2% of IYK's money is in holdings VYM also owns. 8.3% of VYM's is in holdings IYK also owns. They hold 34 positions in common, counted across the 54 positions we hold weights for in IYK and 603 in VYM.

Which pays a higher dividend, IYK or VYM?

IYK yields 2.52% while VYM yields 2.24%, so IYK currently pays the higher dividend yield.

Is VYM better than IYK?

VYM has a lower expense ratio. IYK led over the full window, VYM over 1Y, 3Y and 5Y. VYM is less concentrated, with 25.9% of the fund in its ten largest positions against 66.0%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.