IYZ vs VTI
iShares US Telecommunications ETF vs Vanguard Morningstar Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. IYZ delivered stronger 1-year returns. VTI offers more diversification with 3,543 holdings.
Side-by-Side Comparison
| Metric | IYZ | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.37% | 0.03% | |
| AUM | $1.3B | $666.9B | |
| Dividend Yield | 1.74% | 1.07% | |
| Holdings | 28 | 3,543 | |
| YTD Return | +26.88% | +13.14% | |
| 1Y Return | +43.21% | +22.35% | |
| 3Y Return (annualized) | +27.68% | +21.83% | |
| 5Y Return (annualized) | +6.94% | +12.01% | |
| Volatility (annualized) | 19.4% | 15.3% | |
| Max Drawdown | -72.5% | -56.6% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | May 22, 2000 | May 24, 2001 |
IYZ vs VTI Performance
iShares US Telecommunications ETF (IYZ) 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 IYZ returned +43.21% while VTI returned +22.35%. Year to date, IYZ is up 26.88% versus a gain of 13.14% for VTI.
Over three years, IYZ compounded at +27.68% per year against +21.83% for VTI; over five years the annualized figures are +6.94% and +12.01% respectively. Across the full 25-year window we track, VTI has the edge at +8.09% annualized vs +0.84%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IYZ has been the more volatile fund, with annualized monthly volatility of 19.4% 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 -72.5% for IYZ 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 0.73. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IYZ charges 0.37% per year while VTI charges 0.03%. On a $10,000 position that is $37 vs $3 annually, a gap of $34 per year that compounds over a long holding period. On income, IYZ currently yields 1.74% against 1.07% for VTI.
Holdings Overlap
IYZ and VTI share 19 holdings out of 2793 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, IYZ or VTI?
IYZ has an expense ratio of 0.37% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $34 per year of difference.
Which performed better, IYZ or VTI?
Over the past year IYZ returned +43.21% vs +22.35% for VTI, so IYZ leads on 1-year performance. Over the longest common window we track (25 years), IYZ annualized +0.84% vs +8.09% for VTI. Past performance does not guarantee future results.
Which is riskier, IYZ or VTI?
IYZ has been the more volatile fund at 19.4% annualized versus 15.3% for VTI. Worst drawdown: IYZ -72.5% vs VTI -56.6%.
Should I hold both IYZ and VTI?
IYZ and VTI have a monthly-return correlation of 0.73, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IYZ and VTI?
IYZ and VTI share 19 common holdings with a 1.9% weight overlap. Combined, they hold 2793 unique securities.
Which pays a higher dividend, IYZ or VTI?
IYZ yields 1.74% while VTI yields 1.07%, so IYZ currently pays the higher dividend yield.
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