IYM vs VOO
iShares US Basic Materials ETF vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. IYM delivered stronger 1-year returns. VOO offers more diversification with 509 holdings.
Side-by-Side Comparison
| Metric | IYM | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.38% | 0.03% | |
| AUM | $1.0B | $997.4B | |
| Dividend Yield | 1.30% | 1.08% | |
| Holdings | 43 | 509 | |
| YTD Return | +21.90% | +13.20% | |
| 1Y Return | +32.72% | +21.62% | |
| 3Y Return (annualized) | +15.27% | +22.16% | |
| 5Y Return (annualized) | +9.85% | +13.42% | |
| Volatility (annualized) | 22.2% | 14.1% | |
| Max Drawdown | -68.1% | -34.3% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jun 12, 2000 | Sep 7, 2010 |
IYM vs VOO Performance
iShares US Basic Materials ETF (IYM) is a ETF from iShares by BlackRock (US) and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year IYM returned +32.72% while VOO returned +21.62%. Year to date, IYM is up 21.90% versus a gain of 13.20% for VOO.
Over three years, IYM compounded at +15.27% per year against +22.16% for VOO; over five years the annualized figures are +9.85% and +13.42% respectively. Across the full 16-year window we track, VOO has the edge at +13.51% annualized vs +7.05%. 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 14.1% for VOO. 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 -34.3% for VOO. 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 0.81. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IYM charges 0.38% per year while VOO charges 0.03%. On a $10,000 position that is $38 vs $3 annually, a gap of $35 per year that compounds over a long holding period. On income, IYM currently yields 1.30% against 1.08% for VOO.
Holdings Overlap
IYM and VOO share 15 holdings out of 530 unique holdings combined, representing a 1.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, IYM or VOO?
IYM has an expense ratio of 0.38% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $35 per year of difference.
Which performed better, IYM or VOO?
Over the past year IYM returned +32.72% vs +21.62% for VOO, so IYM leads on 1-year performance. Over the longest common window we track (16 years), IYM annualized +7.05% vs +13.51% for VOO. Past performance does not guarantee future results.
Which is riskier, IYM or VOO?
IYM has been the more volatile fund at 22.2% annualized versus 14.1% for VOO. Worst drawdown: IYM -68.1% vs VOO -34.3%.
Should I hold both IYM and VOO?
IYM and VOO have a monthly-return correlation of 0.81, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IYM and VOO?
IYM and VOO share 15 common holdings with a 1.3% weight overlap. Combined, they hold 530 unique securities.
Which pays a higher dividend, IYM or VOO?
IYM yields 1.30% while VOO yields 1.08%, so IYM currently pays the higher dividend yield.
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