IYM vs SPY
iShares US Basic Materials ETF vs State Street SPDR S&P 500 ETF Trust
Which is better, IYM or SPY?
Each has led over a different period.
SPY has a lower expense ratio. IYM led over 1Y and the full window, SPY over 3Y and 5Y. SPY is less concentrated, with 38.0% of the fund in its ten largest positions against 67.8%.
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 | IYM | SPY |
|---|---|---|
| Expense Ratio | 0.38% | 0.09%Best |
| AUM | $1.1B | $814.4B |
| Dividend Yield | 1.30% | 1.01% |
| Holdings | 43 | 505 |
| YTD Return | +22.42%Best | +12.71% |
| 1Y Return | +29.82%Best | +19.36% |
| 3Y Return (annualized) | +15.08% | +21.09%Best |
| 5Y Return (annualized) | +9.70% | +12.69%Best |
| Volatility (annualized) | 22.2% | 15.1%Best |
| Max Drawdown | -68.1% | -56.5%Best |
| $10,000 over 5 years | $15,887 | $18,173Best |
| Top 10 Weight | 67.8% | 38.0%Best |
| Fund Family | iShares by BlackRock (US) | State Street Investment Management |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Blend |
| Inception | Jun 12, 2000 | Jan 22, 1993 |
Volatility and max drawdown are measured over the window both funds cover: Jun 20, 2000 to Sep 8, 2026 (26.2 years).
IYM vs SPY 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 26.2 years both funds cover.
IYM vs SPY Performance
iShares US Basic Materials ETF (IYM) is an ETF from iShares by BlackRock (US) and State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management. Over the past year IYM returned +29.82% while SPY returned +19.36%. Year to date, IYM is up 22.42% versus a gain of 12.71% for SPY.
Over three years, IYM compounded at +15.08% per year against +21.09% for SPY; over five years the annualized figures are +9.70% and +12.69% respectively. Across the full 26-year window we track, IYM has the edge at +7.06% annualized vs +6.78%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IYM has been the more volatile fund, with annualized monthly volatility of 22.2% compared with 15.1% for SPY. 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 -68.1% for IYM and -56.5% for SPY. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.80. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IYM charges 0.38% per year while SPY charges 0.09%. On a $10,000 position that is $38 vs $9 annually, a gap of $29 per year that compounds over a long holding period. On income, IYM currently yields 1.30% against 1.01% for SPY.
Holdings Overlap
62.3% of IYM's money is in holdings SPY also owns. 1.1% of SPY's money is in holdings IYM also owns.
The two portfolios partly overlap.
13 positions in common, counted across the 40 positions we hold weights for in IYM and 503 in SPY, against full books of 43 and 505.
What only one of them owns
Our book lists 480 positions for SPY that do not appear in our book for IYM (98.3% of the fund), and 24 for IYM that do not appear in SPY (33.5%).
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
| Stock | Weight in IYM | Weight in SPY | Difference |
|---|---|---|---|
| LINLinde Plc Ordinary Shares | 19.78% | 0.34% | 19.44% |
| NEMNewmont Corp. | 9.78% | 0.16% | 9.62% |
| ECLEcolab, Inc. | 6.27% | 0.11% | 6.16% |
| APDAir Products & Chemicals In | 4.74% | 0.10% | 4.64% |
| NUENucor Corp. | 4.58% | 0.09% | 4.49% |
| FASTFastenal Co. | 4.44% | 0.09% | 4.35% |
| STLDSteel Dynamics Inc | 3.13% | 0.05% | 3.08% |
| IFFIntl Flavors & Fragrances | 2.22% | 0.03% | 2.19% |
| IPInternational Paper Co. | 2.19% | 0.03% | 2.16% |
| CFCf Industries Ho | 1.77% | 0.03% | 1.74% |
62.3% of IYM is already inside SPY.
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, IYM or SPY?
IYM has an expense ratio of 0.38% while SPY charges 0.09%. SPY is the cheaper option, by $29 a year on a $10,000 investment.
Which performed better, IYM or SPY?
Over the past year IYM returned +29.82% vs +19.36% for SPY, so IYM leads on 1-year performance. Over the longest common window we track (26 years), IYM annualized +7.06% vs +6.78% for SPY. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, IYM or SPY?
IYM has been the more volatile fund at 22.2% annualized versus 15.1% for SPY. Worst drawdown: IYM -68.1% vs SPY -56.5%.
Should I hold both IYM and SPY?
IYM and SPY have a monthly-return correlation of 0.80, 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 IYM and SPY?
62.3% of IYM's money is in holdings SPY also owns. 1.1% of SPY's is in holdings IYM also owns. They hold 13 positions in common, counted across the 40 positions we hold weights for in IYM and 503 in SPY.
Which pays a higher dividend, IYM or SPY?
IYM yields 1.30% while SPY yields 1.01%, so IYM currently pays the higher dividend yield.
Is SPY better than IYM?
SPY has a lower expense ratio. IYM led over 1Y and the full window, SPY over 3Y and 5Y. SPY is less concentrated, with 38.0% of the fund in its ten largest positions against 67.8%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.