PortfoliosLab logoPortfoliosLab logo

Documentation

Upgrade your plan
IYH vs. VWO
Performance
Return for Risk
Drawdowns
Volatility
Dividends

IYH vs. VWO

Last updated Jun 16, 2026

IYH (iShares U.S. Healthcare ETF) and VWO (Vanguard FTSE Emerging Markets ETF) are both exchange-traded funds - IYH is a Health & Biotech Equities fund tracking the Dow Jones U.S. Health Care Index, while VWO is a Emerging Markets Equities fund tracking the FTSE Emerging Index. Both are passively managed. Over the past 10 years, IYH returned 9.63%/yr vs 9.11%/yr for VWO. A 0.53 correlation means they provide meaningful diversification when combined. IYH charges 0.43%/yr vs 0.08%/yr for VWO.

Performance

IYH vs. VWO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares U.S. Healthcare ETF (IYH) and Vanguard FTSE Emerging Markets ETF (VWO). The values are adjusted to include any dividend payments, if applicable.

Loading charts...

Returns By Period

In the year-to-date period, IYH achieves a -1.10% return, which is significantly lower than VWO's 13.17% return. Over the past 10 years, IYH has outperformed VWO with an annualized return of 9.63%, while VWO has yielded a comparatively lower 9.11% annualized return.

IYH

1D
-0.46%
1M
5.37%
YTD
-1.10%
6M
-1.60%
1Y
14.30%
3Y*
6.09%
5Y*
4.89%
10Y*
9.63%

VWO

1D
2.17%
1M
4.11%
YTD
13.17%
6M
15.35%
1Y
29.26%
3Y*
16.84%
5Y*
5.83%
10Y*
9.11%
*Multi-year figures are annualized to reflect compound growth (CAGR)

IYH vs. VWO - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
IYH
iShares U.S. Healthcare ETF		-1.10%13.16%2.99%2.14%-4.46%23.41%15.56%20.80%5.80%22.27%
VWO
Vanguard FTSE Emerging Markets ETF		13.17%25.60%10.59%9.25%-17.98%1.26%15.17%20.75%-14.76%31.49%

Correlation

The correlation between IYH and VWO is 0.27, which is low. Their price movements are largely independent, making them effective diversification partners.

Correlation
Correlation (1Y)
Calculated over the trailing 1-year period

0.27

Correlation (3Y)
Calculated over the trailing 3-year period

0.29

Correlation (5Y)
Calculated over the trailing 5-year period

0.36

Correlation (10Y)
Calculated over the trailing 10-year period

0.44

Correlation (All Time)
Calculated using the full available price history since Mar 10, 2005

0.53

Over the past year, the correlation between IYH and VWO has dropped to 0.27 - well below their long-term average of 0.53, suggesting their price drivers have been diverging.

IYH vs. VWO - Sectors Allocation Comparison

Sectors
IYH
VWO

Healthcare

100.0%
3.9%

Basic Materials

-

8.0%

Communication Services

-

7.1%

Consumer Cyclical

-

10.7%

Consumer Defensive

-

3.7%

Energy

-

4.6%

Financial Services

-

19.5%

Industrials

-

8.0%

Real Estate

-

2.2%

Technology

-

29.6%

Utilities

-

2.9%

Healthcare

IYH
100.0%
VWO
3.9%

Basic Materials

IYH

-

VWO
8.0%

Communication Services

IYH

-

VWO
7.1%

Consumer Cyclical

IYH

-

VWO
10.7%

Consumer Defensive

IYH

-

VWO
3.7%

Energy

IYH

-

VWO
4.6%

Financial Services

IYH

-

VWO
19.5%

Industrials

IYH

-

VWO
8.0%

Real Estate

IYH

-

VWO
2.2%

Technology

IYH

-

VWO
29.6%

Utilities

IYH

-

VWO
2.9%

Compare stocks, funds, or ETFs

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

iShares U.S. Healthcare ETF

Vanguard FTSE Emerging Markets ETF

Often compared with IYH:
IYH vs. VHTIYH vs. XLVIYH vs. SPYIYH vs. IYEIYH vs. IFRAIYH vs. BMEDIYH vs. IBB
Often compared with VWO:
VWO vs. VEAVWO vs. IEMGVWO vs. VXUSVWO vs. EEMVWO vs. VOOVWO vs. VTIVWO vs. VEMAX

Return for Risk

IYH vs. VWO — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
IYH
IYH Risk / Return Rank: 2929
Overall Rank
IYH Sharpe Ratio Rank: 2929
Sharpe Ratio Rank
IYH Sortino Ratio Rank: 3030
Sortino Ratio Rank
IYH Omega Ratio Rank: 2727
Omega Ratio Rank
IYH Calmar Ratio Rank: 3030
Calmar Ratio Rank
IYH Martin Ratio Rank: 2626
Martin Ratio Rank
VWO
VWO Risk / Return Rank: 5858
Overall Rank
VWO Sharpe Ratio Rank: 5858
Sharpe Ratio Rank
VWO Sortino Ratio Rank: 5757
Sortino Ratio Rank
VWO Omega Ratio Rank: 6060
Omega Ratio Rank
VWO Calmar Ratio Rank: 5959
Calmar Ratio Rank
VWO Martin Ratio Rank: 5858
Martin Ratio Rank
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.

IYH vs. VWO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares U.S. Healthcare ETF (IYH) and Vanguard FTSE Emerging Markets ETF (VWO). 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.

IYHVWODifference
Sharpe ratioReturn per unit of total volatility
0.95
1.77

-0.82

Sortino ratioReturn per unit of downside risk
1.53
2.45

-0.92

Omega ratioGain probability vs. loss probability

1.17

1.33

-0.16

Calmar ratioReturn relative to maximum drawdown

1.35

2.63

-1.28

Martin ratioReturn relative to average drawdown

3.21

9.28

-6.06

IYH vs. VWO - Sharpe Ratio Comparison

The current IYH Sharpe Ratio is 0.95, which is lower than the VWO Sharpe Ratio of 1.77. The chart below compares the historical Sharpe Ratios of IYH and VWO, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Loading charts...

Drawdowns

IYH vs. VWO - Drawdown Comparison

The maximum IYH drawdown since its inception was -43.12%, smaller than the maximum VWO drawdown of -67.68%. Use the drawdown chart below to compare losses from any high point for IYH and VWO.

Loading charts...

Drawdown Indicators

IYHVWODifference

Max Drawdown

Largest peak-to-trough decline

-43.12%

-67.68%

+24.56%

Max Drawdown (1Y)

Largest decline over 1 year

-10.64%

-11.17%

+0.53%

Max Drawdown (3Y)

Largest decline over 3 years

-17.91%

-17.37%

-0.54%

Max Drawdown (5Y)

Largest decline over 5 years

-17.91%

-32.60%

+14.69%

Max Drawdown (10Y)

Largest decline over 10 years

-28.40%

-36.39%

+7.99%

Current Drawdown

Current decline from peak

-4.38%

-0.57%

-3.81%

Average Drawdown

Average peak-to-trough decline

-8.96%

-15.80%

+6.84%

Ulcer Index

Depth and duration of drawdowns from previous peaks

4.46%

3.16%

+1.30%

Volatility

IYH vs. VWO - Volatility Comparison

The current volatility for iShares U.S. Healthcare ETF (IYH) is 4.97%, while Vanguard FTSE Emerging Markets ETF (VWO) has a volatility of 6.98%. This indicates that IYH experiences smaller price fluctuations and is considered to be less risky than VWO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Loading charts...

Volatility by Period

IYHVWODifference

Volatility (1M)

Calculated over the trailing 1-month period

4.97%

6.98%

-2.01%

Volatility (6M)

Calculated over the trailing 6-month period

10.61%

14.18%

-3.57%

Volatility (1Y)

Calculated over the trailing 1-year period

15.11%

16.62%

-1.51%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

14.97%

17.51%

-2.54%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

16.75%

19.24%

-2.49%

IYH vs. VWO - Expense Ratio Comparison

IYH has a 0.43% expense ratio, which is higher than VWO's 0.08% expense ratio.

Dividends

IYH vs. VWO - Dividend Comparison

IYH's dividend yield for the trailing twelve months is around 1.51%, less than VWO's 2.38% yield.

PositionTTM20252024202320222021202020192018201720162015
IYH
iShares U.S. Healthcare ETF		1.51%1.19%1.25%1.18%1.10%0.94%1.16%1.14%1.95%1.10%1.29%2.02%
VWO
Vanguard FTSE Emerging Markets ETF		2.38%2.79%3.20%3.52%4.11%2.63%1.91%3.23%2.88%2.30%2.52%3.26%

Frequently Asked Questions

IYH and VWO have a correlation of 0.27, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

VWO has higher volatility (6.98%) compared to IYH (4.97%). In terms of maximum drawdown, IYH dropped -43.12% vs VWO's -67.68%.

On 10-year performance, IYH leads with 9.63% vs 9.11% for VWO. On fees, VWO is cheaper at 0.08% per year. On volatility, IYH has been the lower-risk option at 4.97%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, IYH has performed better with a 9.63% return vs 9.11%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

VWO is cheaper with a 0.08% expense ratio, compared with 0.43% for IYH.

VWO has the higher dividend yield at 2.38%, compared with 1.51% for IYH.

IYH is categorized as Health & Biotech Equities, while VWO is Emerging Markets Equities. IYH tracks Dow Jones U.S. Health Care Index, while VWO tracks FTSE Emerging Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.43% for IYH and 0.08% for VWO.

VWO currently has the higher Sharpe Ratio (1.77 vs 0.95), 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.

Portfolio Optimizer

Find the right allocation for IYH and VWO

Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.

Open Portfolio Optimizer