IHE vs. VYM
Compare and contrast key facts about iShares U.S. Pharmaceuticals ETF (IHE) and Vanguard High Dividend Yield ETF (VYM).
IHE and VYM are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. IHE is a passively managed fund by iShares that tracks the performance of the Dow Jones U.S. Select Pharmaceuticals Index. It was launched on May 5, 2006. VYM is a passively managed fund by Vanguard that tracks the performance of the FTSE High Dividend Yield Index. It was launched on Nov 10, 2006. Both IHE and VYM are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: IHE or VYM.
Key characteristics
| IHE | VYM | |
|---|---|---|
| YTD Return | 6.78% | 8.37% |
| 1Y Return | 14.77% | 19.83% |
| 3Y Return (Ann) | 7.34% | 7.11% |
| 5Y Return (Ann) | 10.97% | 10.34% |
| 10Y Return (Ann) | 9.13% | 9.89% |
| Sharpe Ratio | 1.06 | 1.92 |
| Daily Std Dev | 13.52% | 10.51% |
| Max Drawdown | -35.30% | -56.98% |
| Current Drawdown | -5.12% | -0.57% |
Correlation
The correlation between IHE and VYM is 0.69, which is considered to be moderate. This suggests that the two assets have some degree of positive relationship in their price movements. Moderate correlation can be acceptable for portfolio diversification, offering a balance between risk and potential returns.
Performance
IHE vs. VYM - Performance Comparison
In the year-to-date period, IHE achieves a 6.78% return, which is significantly lower than VYM's 8.37% return. Over the past 10 years, IHE has underperformed VYM with an annualized return of 9.13%, while VYM has yielded a comparatively higher 9.89% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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IHE vs. VYM - Expense Ratio Comparison
IHE has a 0.42% expense ratio, which is higher than VYM's 0.06% expense ratio.
Risk-Adjusted Performance
IHE vs. VYM - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares U.S. Pharmaceuticals ETF (IHE) and Vanguard High Dividend Yield ETF (VYM). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
Dividends
IHE vs. VYM - Dividend Comparison
IHE's dividend yield for the trailing twelve months is around 3.30%, more than VYM's 2.84% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IHE iShares U.S. Pharmaceuticals ETF | 3.30% | 4.16% | 6.02% | 4.48% | 3.57% | 4.19% | 3.76% | 4.08% | 2.75% | 5.78% | 3.60% | 3.19% |
VYM Vanguard High Dividend Yield ETF | 2.84% | 3.12% | 3.01% | 2.76% | 3.18% | 3.03% | 3.40% | 2.80% | 2.91% | 3.22% | 2.78% | 2.81% |
Drawdowns
IHE vs. VYM - Drawdown Comparison
The maximum IHE drawdown since its inception was -35.30%, smaller than the maximum VYM drawdown of -56.98%. Use the drawdown chart below to compare losses from any high point for IHE and VYM. For additional features, visit the drawdowns tool.
Volatility
IHE vs. VYM - Volatility Comparison
iShares U.S. Pharmaceuticals ETF (IHE) has a higher volatility of 3.21% compared to Vanguard High Dividend Yield ETF (VYM) at 2.42%. This indicates that IHE's price experiences larger fluctuations and is considered to be riskier than VYM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.