IYM vs VTI
iShares US Basic Materials ETF vs Vanguard Morningstar Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. IYM delivered stronger 1-year returns. VTI offers more diversification with 3,543 holdings.
Side-by-Side Comparison
| Metric | IYM | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.38% | 0.03% | |
| AUM | $1.0B | $666.9B | |
| Dividend Yield | 1.30% | 1.07% | |
| Holdings | 43 | 3,543 | |
| YTD Return | +22.14% | +12.65% | |
| 1Y Return | +32.52% | +21.39% | |
| 3Y Return (annualized) | +15.33% | +21.54% | |
| 5Y Return (annualized) | +9.82% | +12.11% | |
| Volatility (annualized) | 22.2% | 15.3% | |
| Max Drawdown | -68.1% | -56.6% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jun 12, 2000 | May 24, 2001 |
IYM vs VTI Performance
iShares US Basic Materials ETF (IYM) is a ETF from iShares by BlackRock (US) and Vanguard Morningstar Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year IYM returned +32.52% while VTI returned +21.39%. Year to date, IYM is up 22.14% versus a gain of 12.65% for VTI.
Over three years, IYM compounded at +15.33% per year against +21.54% for VTI; over five years the annualized figures are +9.82% and +12.11% respectively. Across the full 25-year window we track, VTI has the edge at +8.07% annualized vs +7.06%. 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 15.3% for VTI. 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 -56.6% for VTI. 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 0.84. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IYM charges 0.38% per year while VTI 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 1.07% for VTI.
Holdings Overlap
IYM and VTI share 32 holdings out of 2795 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 VTI?
IYM has an expense ratio of 0.38% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $35 per year of difference.
Which performed better, IYM or VTI?
Over the past year IYM returned +32.52% vs +21.39% for VTI, so IYM leads on 1-year performance. Over the longest common window we track (25 years), IYM annualized +7.06% vs +8.07% for VTI. Past performance does not guarantee future results.
Which is riskier, IYM or VTI?
IYM has been the more volatile fund at 22.2% annualized versus 15.3% for VTI. Worst drawdown: IYM -68.1% vs VTI -56.6%.
Should I hold both IYM and VTI?
IYM and VTI have a monthly-return correlation of 0.84, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IYM and VTI?
IYM and VTI share 32 common holdings with a 1.3% weight overlap. Combined, they hold 2795 unique securities.
Which pays a higher dividend, IYM or VTI?
IYM yields 1.30% while VTI yields 1.07%, so IYM currently pays the higher dividend yield.
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