IYJ vs. IYM

Last updated Jun 14, 2026

IYJ (iShares U.S. Industrials ETF) and IYM (iShares U.S. Basic Materials ETF) are both exchange-traded funds - IYJ is a Industrials Equities fund tracking the Dow Jones U.S. Industrials 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, IYJ returned 12.54%/yr vs 11.23%/yr for IYM. A 0.79 correlation means they provide meaningful diversification when combined. IYJ charges 0.38%/yr vs 0.42%/yr for IYM.

Performance

IYJ vs. IYM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares U.S. Industrials ETF (IYJ) 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, IYJ achieves a 7.60% return, which is significantly lower than IYM's 22.39% return. Over the past 10 years, IYJ has outperformed IYM with an annualized return of 12.54%, while IYM has yielded a comparatively lower 11.23% annualized return.

IYJ

• 1D: 0.68%
• 1M: 1.18%
• YTD: 7.60%
• 6M: 6.77%
• 1Y: 16.22%
• 3Y*: 16.65%
• 5Y*: 8.44%
• 10Y*: 12.54%

IYM

• 1D: 1.70%
• 1M: 1.07%
• YTD: 22.39%
• 6M: 23.93%
• 1Y: 37.90%
• 3Y*: 14.64%
• 5Y*: 8.31%
• 10Y*: 11.23%

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

IYJ vs. IYM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
IYJ iShares U.S. Industrials ETF	7.60%	11.94%	17.82%	19.94%	-13.53%	17.02%	17.37%	32.27%	-11.69%	23.98%
IYM iShares U.S. Basic Materials ETF	22.39%	20.41%	-4.54%	12.83%	-9.15%	25.62%	17.87%	19.22%	-16.63%	24.83%

Correlation

The correlation between IYJ and IYM is 0.69, 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	0.69
Correlation (3Y) Calculated over the trailing 3-year period	0.74
Correlation (5Y) Calculated over the trailing 5-year period	0.78
Correlation (10Y) Calculated over the trailing 10-year period	0.80
Correlation (All Time) Calculated using the full available price history since Jul 14, 2000	0.79

The correlation between IYJ and IYM shifts across timeframes, from 0.69 (1 year) to 0.80 (10 years), reflecting how their relationship changes across market environments.

IYJ vs. IYM - Sectors Allocation Comparison

Sectors	IYJ	IYM
Industrials	69.0%	11.9%
Financial Services	17.0%	-
Technology	7.8%	-
Basic Materials	4.1%	84.5%
Utilities	3.4%	-
Consumer Cyclical	1.6%	3.3%
Healthcare	0.4%	-
Communication Services	-	-
Consumer Defensive	-	-
Energy	-	-
Real Estate	-	-

Return for Risk

IYJ vs. IYM — Risk / Return Rank

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

IYJ

IYJ Risk / Return Rank: 29
IYJ Sharpe Ratio Rank: 28
IYJ Sortino Ratio Rank: 28
IYJ Omega Ratio Rank: 25
IYJ Calmar Ratio Rank: 28
IYJ Martin Ratio Rank: 33

IYM

IYM Risk / Return Rank: 63
IYM Sharpe Ratio Rank: 67
IYM Sortino Ratio Rank: 62
IYM Omega Ratio Rank: 60
IYM Calmar Ratio Rank: 62
IYM Martin Ratio Rank: 65

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.

IYJ vs. IYM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares U.S. Industrials ETF (IYJ) 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.

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.

	IYJ	IYM	Difference
Sharpe ratio: Return per unit of total volatility	0.90	1.90	-1.01
Sortino ratio: Return per unit of downside risk	1.37	2.55	-1.18
Omega ratio: Gain probability vs. loss probability	1.16	1.32	-0.16
Calmar ratio: Return relative to maximum drawdown	1.24	2.74	-1.50
Martin ratio: Return relative to average drawdown	4.44	10.29	-5.85

IYJ vs. IYM - Sharpe Ratio Comparison

The current IYJ Sharpe Ratio is 0.90, which is lower than the IYM Sharpe Ratio of 1.90. The chart below compares the historical Sharpe Ratios of IYJ 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.

Drawdowns

IYJ vs. IYM - Drawdown Comparison

The maximum IYJ drawdown since its inception was -61.97%, smaller than the maximum IYM drawdown of -67.78%. Use the drawdown chart below to compare losses from any high point for IYJ and IYM.

Drawdown Indicators

	IYJ	IYM	Difference
Max Drawdown Largest peak-to-trough decline	-61.97%	-67.78%	+5.81%
Max Drawdown (1Y) Largest decline over 1 year	-11.39%	-13.61%	+2.22%
Max Drawdown (3Y) Largest decline over 3 years	-19.67%	-23.62%	+3.95%
Max Drawdown (5Y) Largest decline over 5 years	-26.24%	-29.94%	+3.70%
Max Drawdown (10Y) Largest decline over 10 years	-40.20%	-42.76%	+2.56%
Current Drawdown Current decline from peak	-1.61%	-0.61%	-1.00%
Average Drawdown Average peak-to-trough decline	-11.20%	-11.45%	+0.25%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.17%	3.61%	-0.44%

Volatility

IYJ vs. IYM - Volatility Comparison

The current volatility for iShares U.S. Industrials ETF (IYJ) is 5.76%, while iShares U.S. Basic Materials ETF (IYM) has a volatility of 8.10%. This indicates that IYJ experiences smaller price fluctuations and is considered to be less risky than IYM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IYJ	IYM	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.76%	8.10%	-2.34%
Volatility (6M) Calculated over the trailing 6-month period	12.57%	15.79%	-3.22%
Volatility (1Y) Calculated over the trailing 1-year period	15.71%	19.55%	-3.84%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.14%	20.53%	-2.39%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.91%	21.77%	-1.86%

IYJ vs. IYM - Expense Ratio Comparison

IYJ has a 0.38% expense ratio, which is lower than IYM's 0.42% expense ratio.

Dividends

IYJ vs. IYM - Dividend Comparison

IYJ's dividend yield for the trailing twelve months is around 0.77%, less than IYM's 1.23% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IYJ iShares U.S. Industrials ETF	0.77%	0.83%	0.88%	1.05%	1.05%	0.76%	1.01%	1.32%	1.43%	1.29%	1.38%	1.53%
IYM iShares U.S. Basic Materials ETF	1.23%	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 IYJ and IYM in my portfolio?

IYJ and IYM have a correlation of 0.69, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, IYJ or IYM?

IYM has higher volatility (8.10%) compared to IYJ (5.76%). In terms of maximum drawdown, IYJ dropped -61.97% vs IYM's -67.78%.

Which ETF is better, IYJ or IYM?

On 10-year performance, IYJ leads with 12.54% vs 11.23% for IYM. On fees, IYJ is cheaper at 0.38% per year. On volatility, IYJ has been the lower-risk option at 5.76%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IYJ or IYM?

Over the 10-year period, IYJ has performed better with a 12.54% return vs 11.23%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IYJ or IYM?

IYJ is cheaper with a 0.38% expense ratio, compared with 0.42% for IYM.

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

IYM has the higher dividend yield at 1.23%, compared with 0.77% for IYJ.

What is the main difference between IYJ and IYM?

IYJ is categorized as Industrials Equities, while IYM is Materials. IYJ tracks Dow Jones U.S. Industrials Index, while IYM tracks Dow Jones U.S. Basic Materials Index. Their fees differ too: 0.38% for IYJ and 0.42% for IYM.

Which has better risk-adjusted returns?

IYM currently has the higher Sharpe Ratio (1.90 vs 0.90), 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.