IYT vs VTI
iShares US Transportation ETF vs Vanguard Morningstar Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. IYT delivered stronger 1-year returns. VTI offers more diversification with 3,543 holdings.
Side-by-Side Comparison
| Metric | IYT | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.38% | 0.03% | |
| AUM | $2.3B | $666.9B | |
| Dividend Yield | 0.92% | 1.07% | |
| Holdings | 47 | 3,543 | |
| YTD Return | +15.97% | +13.14% | |
| 1Y Return | +24.74% | +22.35% | |
| 3Y Return (annualized) | +13.43% | +21.83% | |
| 5Y Return (annualized) | +7.68% | +12.01% | |
| Volatility (annualized) | 20.1% | 15.3% | |
| Max Drawdown | -60.7% | -56.6% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Oct 6, 2003 | May 24, 2001 |
IYT vs VTI Performance
iShares US Transportation ETF (IYT) 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 IYT returned +24.74% while VTI returned +22.35%. Year to date, IYT is up 15.97% versus a gain of 13.14% for VTI.
Over three years, IYT compounded at +13.43% per year against +21.83% for VTI; over five years the annualized figures are +7.68% and +12.01% respectively. Across the full 23-year window we track, IYT has the edge at +9.06% annualized vs +8.09%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IYT has been the more volatile fund, with annualized monthly volatility of 20.1% 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 -60.7% for IYT 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 0.85. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IYT 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, IYT currently yields 0.92% against 1.07% for VTI.
Holdings Overlap
IYT and VTI share 29 holdings out of 2802 unique holdings combined, representing a 1.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, IYT or VTI?
IYT 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, IYT or VTI?
Over the past year IYT returned +24.74% vs +22.35% for VTI, so IYT leads on 1-year performance. Over the longest common window we track (23 years), IYT annualized +9.06% vs +8.09% for VTI. Past performance does not guarantee future results.
Which is riskier, IYT or VTI?
IYT has been the more volatile fund at 20.1% annualized versus 15.3% for VTI. Worst drawdown: IYT -60.7% vs VTI -56.6%.
Should I hold both IYT and VTI?
IYT and VTI have a monthly-return correlation of 0.85, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IYT and VTI?
IYT and VTI share 29 common holdings with a 1.2% weight overlap. Combined, they hold 2802 unique securities.
Which pays a higher dividend, IYT or VTI?
IYT yields 0.92% while VTI yields 1.07%, so VTI currently pays the higher dividend yield.
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