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IWC vs. VYM
Performance
Return for Risk
Drawdowns
Volatility
Dividends

IWC vs. VYM

Last updated Aug 2, 2026
Documentation

IWC (iShares Micro-Cap ETF) and VYM (Vanguard High Dividend Yield ETF) are both exchange-traded funds - IWC is a Small Cap Blend Equities fund tracking the Russell Microcap Index, while VYM is a Dividend fund tracking the FTSE High Dividend Yield Index. Both are passively managed. Over the past 10 years, IWC returned 11.12%/yr vs 11.71%/yr for VYM. Their 0.76 correlation means they have sometimes moved together and sometimes differently. IWC charges 0.60%/yr vs 0.04%/yr for VYM.

Performance

IWC vs. VYM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Micro-Cap ETF (IWC) and Vanguard High Dividend Yield ETF (VYM). The values are adjusted to include any dividend payments, if applicable.

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Returns By Period

In the year-to-date period, IWC achieves a 19.50% return, which is significantly higher than VYM's 14.21% return. Over the past 10 years, IWC has underperformed VYM with an annualized return of 11.12%, while VYM has yielded a comparatively higher 11.71% annualized return.

IWC

1D
-0.70%
1M
-5.03%
6M
12.92%
YTD
19.50%
1Y
48.46%
3Y*
19.06%
5Y*
6.69%
10Y*
11.12%
ALL TIME*
7.67%

VYM

1D
0.00%
1M
1.56%
6M
9.31%
YTD
14.21%
1Y
24.90%
3Y*
16.96%
5Y*
12.20%
10Y*
11.71%
ALL TIME*
9.38%
*Multi-year figures are annualized to reflect compound growth (CAGR)

Liquidity Comparison

PositionAvg. Volume Value (2W)Avg. Volume Value (1M)Avg. Volume Value (3M)

IWC

iShares Micro-Cap ETF
$9.94M$13.29M$20.50M

VYM

Vanguard High Dividend Yield ETF
$195.34M$198.02M$200.78M

IWC vs. VYM - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
IWC
iShares Micro-Cap ETF		19.50%22.45%13.63%8.99%-21.93%18.67%20.88%22.20%-13.13%12.79%
VYM
Vanguard High Dividend Yield ETF		14.21%15.42%17.60%6.57%-0.43%26.20%1.15%24.06%-5.92%16.42%

Correlation

The correlation between IWC and VYM is 0.58, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.

Correlation
Correlation (1Y)
Focuses on recent behavior, but can change the most.

0.58

Correlation (3Y)
Balances recent behavior with more history.

0.69

Correlation (5Y)
Shows whether the relationship held over a longer period.

0.71

Correlation (10Y)
Provides a long-term view across more market conditions.

0.70

Correlation (All Time)
Calculated using the full available price history since Nov 16, 2006

0.76

The correlation between IWC and VYM shifts across timeframes, from 0.58 (1 year) to 0.76 (all time), reflecting how their relationship changes across market environments.

IWC vs. VYM - Sectors Allocation Comparison

Sectors
IWC
VYM

Healthcare

25.8%
13.2%

Financial Services

24.1%
21.0%

Industrials

12.3%
12.6%

Technology

12.3%
17.8%

Consumer Cyclical

7.7%
6.8%

Basic Materials

4.3%
3.3%

Real Estate

4.0%
0.0%

Energy

3.1%
8.6%

Communication Services

3.0%
3.0%

Consumer Defensive

2.4%
8.1%

Utilities

0.7%
5.7%

Healthcare

IWC
25.8%
VYM
13.2%

Financial Services

IWC
24.1%
VYM
21.0%

Industrials

IWC
12.3%
VYM
12.6%

Technology

IWC
12.3%
VYM
17.8%

Consumer Cyclical

IWC
7.7%
VYM
6.8%

Basic Materials

IWC
4.3%
VYM
3.3%

Real Estate

IWC
4.0%
VYM
0.0%

Energy

IWC
3.1%
VYM
8.6%

Communication Services

IWC
3.0%
VYM
3.0%

Consumer Defensive

IWC
2.4%
VYM
8.1%

Utilities

IWC
0.7%
VYM
5.7%

Compare stocks, funds, or ETFs

Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.

iShares Micro-Cap ETF

Vanguard High Dividend Yield ETF

Often compared with IWC:
IWC vs. IWMIWC vs. FDMIWC vs. SPYIWC vs. IWXIWC vs. PVIVXIWC vs. VOOIWC vs. VT
Often compared with VYM:
VYM vs. SCHDVYM vs. VIGVYM vs. VYMIVYM vs. FDVVVYM vs. VOOVYM vs. VTIVYM vs. DGRO

Return for Risk

IWC vs. VYM — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.
IWC
IWC Risk / Return Rank: 8181
Overall Rank
IWC Sharpe Ratio Rank: 8282
Sharpe Ratio Rank
IWC Sortino Ratio Rank: 7979
Sortino Ratio Rank
IWC Omega Ratio Rank: 7373
Omega Ratio Rank
IWC Calmar Ratio Rank: 8989
Calmar Ratio Rank
IWC Martin Ratio Rank: 8484
Martin Ratio Rank
VYM
VYM Risk / Return Rank: 9090
Overall Rank
VYM Sharpe Ratio Rank: 9292
Sharpe Ratio Rank
VYM Sortino Ratio Rank: 9292
Sortino Ratio Rank
VYM Omega Ratio Rank: 9191
Omega Ratio Rank
VYM Calmar Ratio Rank: 8888
Calmar Ratio Rank
VYM Martin Ratio Rank: 8888
Martin Ratio Rank
The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

IWC vs. VYM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Micro-Cap ETF (IWC) 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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

IWCVYMDifference
Sharpe ratioReturn per unit of total volatility
1.89
2.34

-0.45

Sortino ratioReturn per unit of downside risk
2.56
3.35

-0.79

Omega ratioGain probability vs. loss probability

1.30

1.43

-0.12

Calmar ratioReturn relative to maximum drawdown

3.67

3.56

+0.10

Martin ratioReturn relative to average drawdown

11.65

13.40

-1.75

IWC vs. VYM - Sharpe Ratio Comparison

The current IWC Sharpe Ratio is 1.89, which is comparable to the VYM Sharpe Ratio of 2.34. The chart below compares the historical Sharpe Ratios of IWC and VYM, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

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Drawdowns

IWC vs. VYM - Drawdown Comparison

The maximum IWC drawdown since its inception was -64.61%, which is greater than VYM's maximum drawdown of -56.98%. Use the drawdown chart below to compare losses from any high point for IWC and VYM.

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Drawdown Indicators

IWCVYMDifference

Max Drawdown

Largest peak-to-trough decline

-64.61%

-56.98%

-7.63%

Max Drawdown (1Y)

Largest decline over 1 year

-12.43%

-6.69%

-5.74%

Max Drawdown (3Y)

Largest decline over 3 years

-29.46%

-14.46%

-15.00%

Max Drawdown (5Y)

Largest decline over 5 years

-40.61%

-15.84%

-24.77%

Max Drawdown (10Y)

Largest decline over 10 years

-47.21%

-35.21%

-12.00%

Current Drawdown

Current decline from peak

-6.31%

-1.15%

-5.16%

Average Drawdown

Average peak-to-trough decline

-15.18%

-7.14%

-8.04%

Ulcer Index

Depth and duration of drawdowns from previous peaks

3.91%

1.78%

+2.13%

Volatility

IWC vs. VYM - Volatility Comparison

iShares Micro-Cap ETF (IWC) has a higher volatility of 4.63% compared to Vanguard High Dividend Yield ETF (VYM) at 2.46%. This indicates that IWC'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.

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Volatility by Period

IWCVYMDifference

Volatility (1M)

Calculated over the trailing 1-month period

4.63%

2.46%

+2.17%

Volatility (6M)

Calculated over the trailing 6-month period

18.22%

7.42%

+10.80%

Volatility (1Y)

Calculated over the trailing 1-year period

24.13%

10.29%

+13.84%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

24.46%

13.87%

+10.59%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

24.48%

16.29%

+8.19%

IWC vs. VYM - Expense Ratio Comparison

IWC has a 0.60% expense ratio, which is higher than VYM's 0.04% expense ratio.

Dividends

IWC vs. VYM - Dividend Comparison

IWC's dividend yield for the trailing twelve months is around 1.01%, less than VYM's 2.24% yield.

PositionTTM20252024202320222021202020192018201720162015
IWC
iShares Micro-Cap ETF		1.01%1.10%1.06%1.17%1.18%0.78%0.98%1.19%1.01%1.09%1.16%1.49%
VYM
Vanguard High Dividend Yield ETF		2.24%2.44%2.74%3.12%3.01%2.76%3.18%3.03%3.40%2.80%2.91%3.22%

Frequently Asked Questions

IWC and VYM have a correlation of 0.58, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

IWC has higher volatility (4.63%) compared to VYM (2.46%). In terms of maximum drawdown, IWC dropped -64.61% vs VYM's -56.98%.

On 10-year performance, VYM leads with 11.71% vs 11.12% for IWC. On fees, VYM is cheaper at 0.04% per year. On volatility, VYM has been the lower-risk option at 2.46%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, VYM has performed better with a 11.71% return vs 11.12%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

VYM is cheaper with a 0.04% expense ratio, compared with 0.60% for IWC.

VYM has the higher dividend yield at 2.24%, compared with 1.01% for IWC.

IWC is categorized as Small Cap Blend Equities, while VYM is Dividend. IWC tracks Russell Microcap Index, while VYM tracks FTSE High Dividend Yield Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.60% for IWC and 0.04% for VYM.

VYM currently has the higher Sharpe Ratio (2.34 vs 1.89), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.

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