MXI vs VYM
iShares Global Materials ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. MXI delivered stronger 1-year returns. VYM offers more diversification with 616 holdings.
Side-by-Side Comparison
| Metric | MXI | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.37% | 0.04% | |
| AUM | $355M | $81.6B | |
| Dividend Yield | 1.70% | 2.24% | |
| Holdings | 114 | 616 | |
| YTD Return | +13.87% | +15.75% | |
| 1Y Return | +27.60% | +23.85% | |
| 3Y Return (annualized) | +14.61% | +19.14% | |
| 5Y Return (annualized) | +7.35% | +12.45% | |
| Volatility (annualized) | 22.0% | 14.6% | |
| Max Drawdown | -68.7% | -58.8% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Sep 12, 2006 | Nov 10, 2006 |
MXI vs VYM Performance
iShares Global Materials ETF (MXI) 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 MXI returned +27.60% while VYM returned +23.85%. Year to date, MXI is up 13.87% versus a gain of 15.75% for VYM.
Over three years, MXI compounded at +14.61% per year against +19.14% for VYM; over five years the annualized figures are +7.35% and +12.45% respectively. Across the full 20-year window we track, VYM has the edge at +7.06% annualized vs +5.08%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
MXI has been the more volatile fund, with annualized monthly volatility of 22.0% 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 -68.7% for MXI 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 0.77. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
MXI 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, MXI currently yields 1.70% against 2.24% for VYM.
Holdings Overlap
MXI and VYM share 18 holdings out of 678 unique holdings combined, representing a 3.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, MXI or VYM?
MXI 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, MXI or VYM?
Over the past year MXI returned +27.60% vs +23.85% for VYM, so MXI leads on 1-year performance. Over the longest common window we track (20 years), MXI annualized +5.08% vs +7.06% for VYM. Past performance does not guarantee future results.
Which is riskier, MXI or VYM?
MXI has been the more volatile fund at 22.0% annualized versus 14.6% for VYM. Worst drawdown: MXI -68.7% vs VYM -58.8%.
Should I hold both MXI and VYM?
MXI and VYM have a monthly-return correlation of 0.77, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MXI and VYM?
MXI and VYM share 18 common holdings with a 3.1% weight overlap. Combined, they hold 678 unique securities.
Which pays a higher dividend, MXI or VYM?
MXI yields 1.70% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.
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