IYT vs VYM
iShares US Transportation ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. IYT delivered stronger 1-year returns. VYM offers more diversification with 616 holdings.
Side-by-Side Comparison
| Metric | IYT | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.38% | 0.04% | |
| AUM | $2.3B | $81.6B | |
| Dividend Yield | 0.92% | 2.24% | |
| Holdings | 47 | 616 | |
| YTD Return | +16.50% | +16.42% | |
| 1Y Return | +25.46% | +24.22% | |
| 3Y Return (annualized) | +12.77% | +19.03% | |
| 5Y Return (annualized) | +7.43% | +12.21% | |
| Volatility (annualized) | 20.1% | 14.6% | |
| Max Drawdown | -60.7% | -58.8% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Oct 6, 2003 | Nov 10, 2006 |
IYT vs VYM Performance
iShares US Transportation ETF (IYT) is a ETF from iShares by BlackRock (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year IYT returned +25.46% while VYM returned +24.22%. Year to date, IYT is up 16.50% versus a gain of 16.42% for VYM.
Over three years, IYT compounded at +12.77% per year against +19.03% for VYM; over five years the annualized figures are +7.43% and +12.21% respectively. Across the full 20-year window we track, IYT has the edge at +9.09% annualized vs +7.10%. 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 14.6% 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 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
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
IYT and VYM share 12 holdings out of 635 unique holdings combined, representing a 1.9% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
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. On a $10,000 investment, that is $34 per year of difference.
Which performed better, IYT or VYM?
Over the past year IYT returned +25.46% vs +24.22% for VYM, so IYT leads on 1-year performance. Over the longest common window we track (20 years), IYT annualized +9.09% vs +7.10% for VYM. Past performance does not guarantee future results.
Which is riskier, IYT or VYM?
IYT has been the more volatile fund at 20.1% annualized versus 14.6% 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 combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IYT and VYM?
IYT and VYM share 12 common holdings with a 1.9% weight overlap. Combined, they hold 635 unique securities.
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.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.