IYE vs. IYM

Last updated Jun 6, 2026

IYE (iShares U.S. Energy ETF) and IYM (iShares U.S. Basic Materials ETF) are both exchange-traded funds - IYE is a Energy Equities fund tracking the Dow Jones U.S. Oil & Gas Index, while IYM is a Materials fund tracking the Dow Jones U.S. Basic Materials Index. Both are passively managed. Over the past 10 years, IYE returned 8.30%/yr vs 10.55%/yr for IYM. A 0.65 correlation means they provide meaningful diversification when combined. Both charge a 0.42% expense ratio.

Performance

IYE vs. IYM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares U.S. Energy ETF (IYE) and iShares U.S. Basic Materials ETF (IYM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, IYE achieves a 29.18% return, which is significantly higher than IYM's 18.26% return. Over the past 10 years, IYE has underperformed IYM with an annualized return of 8.30%, while IYM has yielded a comparatively higher 10.55% annualized return.

IYE

• 1D: -2.10%
• 1M: 0.88%
• YTD: 29.18%
• 6M: 26.69%
• 1Y: 43.85%
• 3Y*: 16.27%
• 5Y*: 19.02%
• 10Y*: 8.30%

IYM

• 1D: -3.21%
• 1M: -2.44%
• YTD: 18.26%
• 6M: 23.64%
• 1Y: 34.01%
• 3Y*: 14.47%
• 5Y*: 7.14%
• 10Y*: 10.55%

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

IYE vs. IYM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
IYE iShares U.S. Energy ETF	29.18%	7.33%	6.06%	-2.21%	60.21%	53.42%	-33.49%	10.03%	-19.37%	-1.80%
IYM iShares U.S. Basic Materials ETF	18.26%	20.41%	-4.54%	12.83%	-9.15%	25.62%	17.87%	19.22%	-16.63%	24.83%

Correlation

The correlation between IYE and IYM is 0.15, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.15
Correlation (3Y) Calculated over the trailing 3-year period	0.38
Correlation (5Y) Calculated over the trailing 5-year period	0.50
Correlation (10Y) Calculated over the trailing 10-year period	0.58
Correlation (All Time) Calculated using the full available price history since Jun 21, 2000	0.65

Over the past year, the correlation between IYE and IYM has dropped to 0.15 - well below their long-term average of 0.65, suggesting their price drivers have been diverging.

IYE vs. IYM - Sectors Allocation Comparison

Sectors	IYE	IYM
Energy	98.9%	-
Technology	1.1%	-
Basic Materials	-	85.4%
Communication Services	-	-
Consumer Cyclical	-	3.2%
Consumer Defensive	-	-
Financial Services	-	-
Healthcare	-	-
Industrials	-	11.4%
Real Estate	-	-
Utilities	-	-

Return for Risk

IYE vs. IYM — Risk / Return Rank

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

IYE

IYE Risk / Return Rank: 66
IYE Sharpe Ratio Rank: 70
IYE Sortino Ratio Rank: 63
IYE Omega Ratio Rank: 60
IYE Calmar Ratio Rank: 75
IYE Martin Ratio Rank: 62

IYM

IYM Risk / Return Rank: 53
IYM Sharpe Ratio Rank: 55
IYM Sortino Ratio Rank: 52
IYM Omega Ratio Rank: 51
IYM Calmar Ratio Rank: 53
IYM Martin Ratio Rank: 57

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.

IYE vs. IYM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares U.S. Energy ETF (IYE) and iShares U.S. Basic Materials ETF (IYM). 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.

	IYE	IYM	Difference
Sharpe ratio: Return per unit of total volatility	2.20	1.80	+0.40
Sortino ratio: Return per unit of downside risk	2.84	2.42	+0.42
Omega ratio: Gain probability vs. loss probability	1.36	1.30	+0.05
Calmar ratio: Return relative to maximum drawdown	3.70	2.51	+1.19
Martin ratio: Return relative to average drawdown	10.81	9.53	+1.29
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

IYE vs. IYM - Sharpe Ratio Comparison

The current IYE Sharpe Ratio is 2.20, which is comparable to the IYM Sharpe Ratio of 1.80. The chart below compares the historical Sharpe Ratios of IYE and IYM, 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

	IYE	IYM	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.20	1.80	+0.40
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.74	0.35	+0.39
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.28	0.49	-0.21
Sharpe Ratio (All Time) Calculated using the full available price history	0.26	0.33	-0.07

Drawdowns

IYE vs. IYM - Drawdown Comparison

The maximum IYE drawdown since its inception was -73.74%, which is greater than IYM's maximum drawdown of -67.78%. Use the drawdown chart below to compare losses from any high point for IYE and IYM.

Drawdown Indicators

	IYE	IYM	Difference
Max Drawdown Largest peak-to-trough decline	-73.74%	-67.78%	-5.96%
Max Drawdown (1Y) Largest decline over 1 year	-11.92%	-13.61%	+1.69%
Max Drawdown (3Y) Largest decline over 3 years	-20.37%	-23.62%	+3.25%
Max Drawdown (5Y) Largest decline over 5 years	-25.61%	-29.94%	+4.33%
Max Drawdown (10Y) Largest decline over 10 years	-68.59%	-42.76%	-25.83%
Current Drawdown Current decline from peak	-7.72%	-3.96%	-3.76%
Average Drawdown Average peak-to-trough decline	-19.36%	-11.45%	-7.91%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.07%	3.58%	+0.49%

Volatility

IYE vs. IYM - Volatility Comparison

iShares U.S. Energy ETF (IYE) and iShares U.S. Basic Materials ETF (IYM) have volatilities of 7.06% and 6.80%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IYE	IYM	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.06%	6.80%	+0.26%
Volatility (6M) Calculated over the trailing 6-month period	16.14%	15.24%	+0.90%
Volatility (1Y) Calculated over the trailing 1-year period	19.98%	18.94%	+1.04%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	25.72%	20.42%	+5.30%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	29.51%	21.72%	+7.79%

IYE vs. IYM - Expense Ratio Comparison

Both IYE and IYM have an expense ratio of 0.42%.

Dividends

IYE vs. IYM - Dividend Comparison

IYE's dividend yield for the trailing twelve months is around 2.18%, more than IYM's 1.28% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IYE iShares U.S. Energy ETF	2.18%	2.85%	2.75%	2.99%	3.37%	2.98%	4.75%	6.60%	3.16%	2.66%	2.11%	3.39%
IYM iShares U.S. Basic Materials ETF	1.28%	1.51%	1.65%	1.77%	2.14%	1.48%	1.39%	2.08%	1.68%	1.43%	1.47%	2.04%

Frequently Asked Questions

Can I hold both IYE and IYM in my portfolio?

IYE and IYM have a correlation of 0.15, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, IYE or IYM?

IYE has higher volatility (7.06%) compared to IYM (6.80%). In terms of maximum drawdown, IYE dropped -73.74% vs IYM's -67.78%.

Which ETF is better, IYE or IYM?

On 10-year performance, IYM leads with 10.55% vs 8.30% for IYE. Both ETFs have the same 0.42% expense ratio. On volatility, IYM has been the lower-risk option at 6.80%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IYE or IYM?

Over the 10-year period, IYM has performed better with a 10.55% return vs 8.30%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IYE or IYM?

IYE and IYM have the same expense ratio: 0.42% per year.

Which ETF pays a higher dividend yield, IYE or IYM?

IYE has the higher dividend yield at 2.18%, compared with 1.28% for IYM.

What is the main difference between IYE and IYM?

IYE is categorized as Energy Equities, while IYM is Materials. IYE tracks Dow Jones U.S. Oil & Gas Index, while IYM tracks Dow Jones U.S. Basic Materials Index.

Which has better risk-adjusted returns?

IYE currently has the higher Sharpe Ratio (2.20 vs 1.80), 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.