IYZ vs VYM
iShares US Telecommunications ETF vs Vanguard High Dividend Yield ETF
Which is better, IYZ or VYM?
Each has led over a different period.
VYM has a lower expense ratio. IYZ led over 1Y and 3Y, VYM over 5Y and the full window. VYM is less concentrated, with 25.9% of the fund in its ten largest positions against 74.5%.
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 | IYZ | VYM |
|---|---|---|
| Expense Ratio | 0.37% | 0.04%Best |
| AUM | $1.2B | $81.6B |
| Dividend Yield | 1.63% | 2.22% |
| Holdings | 28 | 613 |
| YTD Return | +24.26%Best | +13.15% |
| 1Y Return | +33.77%Best | +17.82% |
| 3Y Return (annualized) | +26.07%Best | +17.99% |
| 5Y Return (annualized) | +6.75% | +12.16%Best |
| Volatility (annualized) | 17.7% | 14.5%Best |
| Max Drawdown | -62.8% | -58.8%Best |
| $10,000 over 5 years | $13,862 | $17,750Best |
| Top 10 Weight | 74.5% | 25.9%Best |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Value | Large Cap Value |
| Inception | May 22, 2000 | Nov 10, 2006 |
Volatility and max drawdown are measured over the window both funds cover: Nov 16, 2006 to Sep 10, 2026 (19.8 years).
IYZ 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.
IYZ vs VYM Performance
iShares US Telecommunications ETF (IYZ) 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 IYZ returned +33.77% while VYM returned +17.82%. Year to date, IYZ is up 24.26% versus a gain of 13.15% for VYM.
Over three years, IYZ compounded at +26.07% per year against +17.99% for VYM; over five years the annualized figures are +6.75% and +12.16% respectively. Across the full 20-year window we track, VYM has the edge at +6.91% annualized vs +2.66%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IYZ has been the more volatile fund, with annualized monthly volatility of 17.7% 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 -62.8% for IYZ 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 0.74. 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 1.63% against 2.22% for VYM.
Holdings Overlap
49.8% of IYZ's money is in holdings VYM also owns. 4.0% of VYM's money is in holdings IYZ also owns.
The two portfolios partly overlap.
The two holdings books were reported 62 days apart, IYZ as of Aug 31, 2026 and VYM as of Jun 30, 2026, so some of the difference between them is the time between the two reports rather than the funds.
6 positions in common, counted across the 23 positions we hold weights for in IYZ and 603 in VYM, against full books of 28 and 613.
What only one of them owns
Our book lists 562 positions for VYM that do not appear in our book for IYZ (93.5% of the fund), and 15 for IYZ that do not appear in VYM (46.3%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in IYZ | Weight in VYM | Difference |
|---|---|---|---|
| CSCOCisco Systems Inc. - Ordinary Shares | 21.31% | 1.93% | 19.38% |
| VZVerizon Communications, Inc. | 13.00% | 0.74% | 12.26% |
| TAt&t, Inc. | 5.22% | 0.58% | 4.64% |
| CMCSAComcast Corp. Class A | 4.12% | 0.36% | 3.76% |
| TMUST-Mobile Usa Inc Esrw Usd Npv Ref Sm#585558 | 3.60% | 0.34% | 3.26% |
| IRDMIridium Communications Inc | 2.53% | 0.02% | 2.51% |
49.8% of IYZ 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, IYZ or VYM?
IYZ has an expense ratio of 0.37% while VYM charges 0.04%. VYM is the cheaper option, by $33 a year on a $10,000 investment.
Which performed better, IYZ or VYM?
Over the past year IYZ returned +33.77% vs +17.82% for VYM, so IYZ leads on 1-year performance. Over the longest common window we track (20 years), IYZ annualized +2.66% vs +6.91% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, IYZ or VYM?
IYZ has been the more volatile fund at 17.7% annualized versus 14.5% for VYM. Worst drawdown: IYZ -62.8% vs VYM -58.8%.
Should I hold both IYZ and VYM?
IYZ and VYM have a monthly-return correlation of 0.74, 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 IYZ and VYM?
49.8% of IYZ's money is in holdings VYM also owns. 4.0% of VYM's is in holdings IYZ also owns. They hold 6 positions in common, counted across the 23 positions we hold weights for in IYZ and 603 in VYM.
Which pays a higher dividend, IYZ or VYM?
IYZ yields 1.63% while VYM yields 2.22%, so VYM currently pays the higher dividend yield.
Is VYM better than IYZ?
VYM has a lower expense ratio. IYZ led over 1Y and 3Y, VYM over 5Y and the full window. VYM is less concentrated, with 25.9% of the fund in its ten largest positions against 74.5%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.