IYT vs VYM
iShares US Transportation ETF vs Vanguard High Dividend Yield ETF
Which is better, IYT or VYM?
Mid Cap Blend against Large Cap Value.
VYM has a lower expense ratio. IYT 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 72.4%.
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 | IYT | VYM |
|---|---|---|
| Expense Ratio | 0.38% | 0.04%Best |
| AUM | $2.2B | $81.6B |
| Dividend Yield | 0.92% | 2.24% |
| Holdings | 47 | 613 |
| YTD Return | +11.39% | +15.29%Best |
| 1Y Return | +19.49% | +22.23%Best |
| 3Y Return (annualized) | +12.06% | +18.81%Best |
| 5Y Return (annualized) | +6.80% | +12.14%Best |
| Volatility (annualized) | 20.8% | 14.5%Best |
| Max Drawdown | -60.7% | -58.8%Best |
| $10,000 over 5 years | $13,895 | $17,734Best |
| Top 10 Weight | 72.4% | 25.9%Best |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Mid Cap Blend | Large Cap Value |
| Inception | Oct 6, 2003 | Nov 10, 2006 |
Volatility and max drawdown are measured over the window both funds cover: Nov 16, 2006 to Sep 3, 2026 (19.8 years).
IYT 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.
IYT vs VYM Performance
iShares US Transportation ETF (IYT) 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 IYT returned +19.49% while VYM returned +22.23%. Year to date, IYT is up 11.39% versus a gain of 15.29% for VYM.
Over three years, IYT compounded at +12.06% per year against +18.81% for VYM; over five years the annualized figures are +6.80% and +12.14% respectively. Across the full 20-year window we track, IYT has the edge at +7.31% annualized vs +7.02%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IYT has been the more volatile fund, with annualized monthly volatility of 20.8% compared with 14.5% for VYM. 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 -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 0.84. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IYT 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, IYT currently yields 0.92% against 2.24% for VYM.
Holdings Overlap
42.0% of IYT's money is in holdings VYM also owns. 1.9% of VYM's money is in holdings IYT also owns.
The two portfolios partly overlap.
12 positions in common, counted across the 44 positions we hold weights for in IYT and 603 in VYM, against full books of 47 and 613.
What only one of them owns
Measured across the 44 and 603 positions we hold weights for.
VYM holds 558 positions IYT does not, 95.5% of the fund.
Largest: AVGO 7.29%, JPM 3.38%, JNJ 2.54%, XOM 2.36%, CAT 2.01%
Top Shared Holdings
| Stock | Weight in IYT | Weight in VYM | Difference |
|---|---|---|---|
| UNPUnion Pacific Corp | 17.21% | 0.67% | 16.54% |
| UPSUnited Parcel Service, Inc | 5.70% | 0.33% | 5.37% |
| NSCNorfolk Southern Corp | 4.78% | 0.29% | 4.49% |
| FDXFedex Corp | 4.20% | 0.28% | 3.92% |
| LUVSouthwest Airlines Co. | 2.98% | 0.10% | 2.88% |
| CHRWCH Robinson Worldwide | 2.26% | 0.09% | 2.17% |
| FDXFFedex Freight Holding Company Inc | 1.94% | 0.07% | 1.87% |
| RRyder System Inc | 1.28% | 0.04% | 1.24% |
| LSTRLandstar System Inc | 0.76% | 0.03% | 0.73% |
| HUBGHub Group Inc | 0.36% | 0.01% | 0.35% |
42.0% of IYT 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.
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Frequently Asked Questions
Which is cheaper, IYT or VYM?
IYT 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, IYT or VYM?
Over the past year IYT returned +19.49% vs +22.23% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), IYT annualized +7.31% vs +7.02% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, IYT or VYM?
IYT has been the more volatile fund at 20.8% annualized versus 14.5% for VYM. Worst drawdown: IYT -60.7% vs VYM -58.8%.
Should I hold both IYT and VYM?
IYT and VYM have a monthly-return correlation of 0.84, 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 IYT and VYM?
42.0% of IYT's money is in holdings VYM also owns. 1.9% of VYM's is in holdings IYT also owns. They hold 12 positions in common, counted across the 44 positions we hold weights for in IYT and 603 in VYM.
Which pays a higher dividend, IYT or VYM?
IYT yields 0.92% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.
Is VYM better than IYT?
VYM has a lower expense ratio. IYT 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 72.4%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.