IWFS.L vs. VHYG.L

Last updated Jun 5, 2026

IWFS.L (iShares Edge MSCI World Size Factor UCITS ETF) and VHYG.L (Vanguard FTSE All-World High Dividend Yield UCITS ETF) are both Global Equities funds - IWFS.L tracks the MSCI ACWI NR USD while VHYG.L tracks the MSCI World High Dividend Yield NR USD. Both are passively managed. Over the past 5 years, IWFS.L returned 6.56%/yr vs 11.68%/yr for VHYG.L. Their correlation of 0.84 suggests significant overlap in exposure. IWFS.L charges 0.30%/yr vs 0.29%/yr for VHYG.L.

Performance

IWFS.L vs. VHYG.L - Performance Comparison

The chart below illustrates the hypothetical performance of a £10,000 investment in iShares Edge MSCI World Size Factor UCITS ETF (IWFS.L) and Vanguard FTSE All-World High Dividend Yield UCITS ETF (VHYG.L). The values are adjusted to include any dividend payments, if applicable.

Different Trading Currencies

IWFS.L is traded in GBp, while VHYG.L is traded in GBP. To make them comparable, the VHYG.L values have been converted to GBp using the latest available exchange rates.

Returns By Period

In the year-to-date period, IWFS.L achieves a 6.39% return, which is significantly lower than VHYG.L's 11.62% return.

IWFS.L

• 1D: 0.39%
• 1M: 2.27%
• YTD: 6.39%
• 6M: 7.47%
• 1Y: 18.20%
• 3Y*: 11.67%
• 5Y*: 6.56%
• 10Y*: 9.00%

VHYG.L

• 1D: 0.37%
• 1M: 3.93%
• YTD: 11.62%
• 6M: 13.20%
• 1Y: 28.51%
• 3Y*: 15.99%
• 5Y*: 11.68%
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

IWFS.L vs. VHYG.L - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
IWFS.L iShares Edge MSCI World Size Factor UCITS ETF	6.39%	13.13%	7.64%	9.74%	-8.21%	13.88%	7.33%	1.05%
VHYG.L Vanguard FTSE All-World High Dividend Yield UCITS ETF	11.62%	18.36%	10.99%	5.01%	6.20%	19.28%	-3.61%	-18.20%

Correlation

The correlation between IWFS.L and VHYG.L is 0.70, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.70
Correlation (3Y) Calculated over the trailing 3-year period	0.78
Correlation (5Y) Calculated over the trailing 5-year period	0.81
Correlation (All Time) Calculated using the full available price history since Sep 25, 2019	0.84

The correlation between IWFS.L and VHYG.L shifts across timeframes, from 0.70 (1 year) to 0.84 (all time), reflecting how their relationship changes across market environments.

IWFS.L vs. VHYG.L - Sectors Allocation Comparison

Sectors	IWFS.L	VHYG.L
Industrials	21.4%	12.3%
Financial Services	14.2%	28.6%
Technology	12.0%	7.7%
Consumer Cyclical	9.7%	7.0%
Healthcare	7.4%	11.2%
Basic Materials	7.1%	5.1%
Real Estate	6.9%	0.9%
Consumer Defensive	6.6%	8.7%
Utilities	6.3%	5.7%
Communication Services	4.8%	3.5%
Energy	3.5%	9.4%

Return for Risk

IWFS.L vs. VHYG.L — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

IWFS.L

IWFS.L Risk / Return Rank: 50
IWFS.L Sharpe Ratio Rank: 53
IWFS.L Sortino Ratio Rank: 52
IWFS.L Omega Ratio Rank: 52
IWFS.L Calmar Ratio Rank: 44
IWFS.L Martin Ratio Rank: 47

VHYG.L

VHYG.L Risk / Return Rank: 86
VHYG.L Sharpe Ratio Rank: 90
VHYG.L Sortino Ratio Rank: 90
VHYG.L Omega Ratio Rank: 90
VHYG.L Calmar Ratio Rank: 80
VHYG.L Martin Ratio Rank: 78

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

IWFS.L vs. VHYG.L - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Edge MSCI World Size Factor UCITS ETF (IWFS.L) and Vanguard FTSE All-World High Dividend Yield UCITS ETF (VHYG.L). 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.

	IWFS.L	VHYG.L	Difference
Sharpe ratio: Return per unit of total volatility	1.77	3.10	-1.33
Sortino ratio: Return per unit of downside risk	2.49	4.11	-1.62
Omega ratio: Gain probability vs. loss probability	1.32	1.58	-0.26
Calmar ratio: Return relative to maximum drawdown	2.18	4.10	-1.92
Martin ratio: Return relative to average drawdown	7.72	14.82	-7.10
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

IWFS.L vs. VHYG.L - Sharpe Ratio Comparison

The current IWFS.L Sharpe Ratio is 1.77, which is lower than the VHYG.L Sharpe Ratio of 3.10. The chart below compares the historical Sharpe Ratios of IWFS.L and VHYG.L, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	IWFS.L	VHYG.L	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.77	3.10	-1.33
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.51	1.05	-0.54
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.63	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.63	0.42	+0.21

Drawdowns

IWFS.L vs. VHYG.L - Drawdown Comparison

The maximum IWFS.L drawdown since its inception was -29.90%, smaller than the maximum VHYG.L drawdown of -39.81%. Use the drawdown chart below to compare losses from any high point for IWFS.L and VHYG.L.

Drawdown Indicators

	IWFS.L	VHYG.L	Difference
Max Drawdown Largest peak-to-trough decline	-29.90%	-39.81%	+9.91%
Max Drawdown (1Y) Largest decline over 1 year	-8.31%	-6.93%	-1.38%
Max Drawdown (3Y) Largest decline over 3 years	-14.42%	-12.76%	-1.66%
Max Drawdown (5Y) Largest decline over 5 years	-17.33%	-12.76%	-4.57%
Max Drawdown (10Y) Largest decline over 10 years	-29.90%	—	—
Current Drawdown Current decline from peak	-0.80%	0.00%	-0.80%
Average Drawdown Average peak-to-trough decline	-4.67%	-8.23%	+3.56%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.35%	1.92%	+0.43%

Volatility

IWFS.L vs. VHYG.L - Volatility Comparison

iShares Edge MSCI World Size Factor UCITS ETF (IWFS.L) has a higher volatility of 2.53% compared to Vanguard FTSE All-World High Dividend Yield UCITS ETF (VHYG.L) at 2.27%. This indicates that IWFS.L's price experiences larger fluctuations and is considered to be riskier than VHYG.L based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IWFS.L	VHYG.L	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.53%	2.27%	+0.26%
Volatility (6M) Calculated over the trailing 6-month period	7.92%	7.12%	+0.80%
Volatility (1Y) Calculated over the trailing 1-year period	10.23%	9.16%	+1.07%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	12.96%	11.12%	+1.84%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	14.39%	15.91%	-1.52%

IWFS.L vs. VHYG.L - Expense Ratio Comparison

IWFS.L has a 0.30% expense ratio, which is higher than VHYG.L's 0.29% expense ratio.

Dividends

IWFS.L vs. VHYG.L - Dividend Comparison

Neither IWFS.L nor VHYG.L has paid dividends to shareholders.

Tickers have no history of dividend payments

Frequently Asked Questions

Can I hold both IWFS.L and VHYG.L in my portfolio?

IWFS.L and VHYG.L have a correlation of 0.70, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, IWFS.L or VHYG.L?

On fees, VHYG.L is cheaper at 0.29% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, IWFS.L or VHYG.L?

VHYG.L is cheaper with a 0.29% expense ratio, compared with 0.30% for IWFS.L.

What is the main difference between IWFS.L and VHYG.L?

IWFS.L tracks MSCI ACWI NR USD, while VHYG.L tracks MSCI World High Dividend Yield NR USD. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.30% for IWFS.L and 0.29% for VHYG.L.