IYZ vs VYM
iShares US Telecommunications ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. IYZ delivered stronger 1-year returns. VYM offers more diversification with 616 holdings.
Side-by-Side Comparison
| Metric | IYZ | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.37% | 0.04% | |
| AUM | $1.3B | $81.6B | |
| Dividend Yield | 1.74% | 2.24% | |
| Holdings | 28 | 616 | |
| YTD Return | +25.47% | +14.66% | |
| 1Y Return | +42.13% | +22.16% | |
| 3Y Return (annualized) | +27.15% | +18.72% | |
| 5Y Return (annualized) | +6.81% | +12.18% | |
| Volatility (annualized) | 19.4% | 14.6% | |
| Max Drawdown | -72.5% | -58.8% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | May 22, 2000 | Nov 10, 2006 |
IYZ vs VYM Performance
iShares US Telecommunications ETF (IYZ) 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 IYZ returned +42.13% while VYM returned +22.16%. Year to date, IYZ is up 25.47% versus a gain of 14.66% for VYM.
Over three years, IYZ compounded at +27.15% per year against +18.72% for VYM; over five years the annualized figures are +6.81% and +12.18% respectively. Across the full 20-year window we track, VYM has the edge at +7.01% annualized vs +0.80%. 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 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 -72.5% for IYZ 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 0.74. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IYZ charges 0.37% per year while VYM charges 0.04%. On a $10,000 position that is $37 vs $4 annually, a gap of $33 per year that compounds over a long holding period. On income, IYZ currently yields 1.74% against 2.24% for VYM.
Holdings Overlap
IYZ and VYM share 6 holdings out of 622 unique holdings combined, representing a 4.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, IYZ or VYM?
IYZ has an expense ratio of 0.37% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $33 per year of difference.
Which performed better, IYZ or VYM?
Over the past year IYZ returned +42.13% vs +22.16% for VYM, so IYZ leads on 1-year performance. Over the longest common window we track (20 years), IYZ annualized +0.80% vs +7.01% for VYM. Past performance does not guarantee future results.
Which is riskier, IYZ or VYM?
IYZ has been the more volatile fund at 19.4% annualized versus 14.6% for VYM. Worst drawdown: IYZ -72.5% vs VYM -58.8%.
Should I hold both IYZ and VYM?
IYZ and VYM have a monthly-return correlation of 0.74, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IYZ and VYM?
IYZ and VYM share 6 common holdings with a 4.0% weight overlap. Combined, they hold 622 unique securities.
Which pays a higher dividend, IYZ or VYM?
IYZ yields 1.74% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.
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