IYM vs. IYF
IYM (iShares U.S. Basic Materials ETF) and IYF (iShares U.S. Financials ETF) are both exchange-traded funds - IYM is a Materials fund tracking the Dow Jones U.S. Basic Materials Index, while IYF is a Financials Equities fund tracking the Dow Jones U.S. Financials Index. Both are passively managed. Over the past 10 years, IYM returned 11.23%/yr vs 13.53%/yr for IYF. A 0.67 correlation means they provide meaningful diversification when combined. Both charge a 0.42% expense ratio.
Performance
IYM vs. IYF - Performance Comparison
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Returns By Period
In the year-to-date period, IYM achieves a 22.39% return, which is significantly higher than IYF's -0.19% return. Over the past 10 years, IYM has underperformed IYF with an annualized return of 11.23%, while IYF has yielded a comparatively higher 13.53% annualized return.
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%
IYF
- 1D
- 1.38%
- 1M
- 4.53%
- YTD
- -0.19%
- 6M
- -0.21%
- 1Y
- 13.73%
- 3Y*
- 21.71%
- 5Y*
- 10.87%
- 10Y*
- 13.53%
IYM vs. IYF - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
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% |
IYF iShares U.S. Financials ETF | -0.19% | 18.25% | 31.30% | 15.32% | -11.33% | 31.60% | -1.00% | 31.86% | -9.39% | 19.58% |
Correlation
The correlation between IYM and IYF is 0.48, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.48 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.59 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.68 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.71 |
Correlation (All Time) Calculated using the full available price history since Jun 20, 2000 | 0.67 |
The correlation between IYM and IYF shifts across timeframes, from 0.48 (1 year) to 0.71 (10 years), reflecting how their relationship changes across market environments.
IYM vs. IYF - Sectors Allocation Comparison
Sectors
IYM
IYF
Basic Materials
-
Industrials
-
Consumer Cyclical
-
Communication Services
-
-
Consumer Defensive
-
-
Energy
-
-
Financial Services
-
Healthcare
-
-
Real Estate
-
Technology
-
Utilities
-
-
Basic Materials
IYM
IYF
-
Industrials
IYM
IYF
-
Consumer Cyclical
IYM
IYF
-
Communication Services
IYM
-
IYF
-
Consumer Defensive
IYM
-
IYF
-
Energy
IYM
-
IYF
-
Financial Services
IYM
-
IYF
Healthcare
IYM
-
IYF
-
Real Estate
IYM
-
IYF
Technology
IYM
-
IYF
Utilities
IYM
-
IYF
-
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Return for Risk
IYM vs. IYF — Risk / Return Rank
IYM
IYF
IYM vs. IYF - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares U.S. Basic Materials ETF (IYM) and iShares U.S. Financials ETF (IYF). 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.
| IYM | IYF | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.07 | ||
| Sortino ratioReturn per unit of downside risk | +1.34 | ||
| Omega ratioGain probability vs. loss probability | 1.32 | 1.15 | +0.17 |
| Calmar ratioReturn relative to maximum drawdown | 2.74 | 0.88 | +1.85 |
| Martin ratioReturn relative to average drawdown | 10.29 | 2.38 | +7.90 |
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Drawdowns
IYM vs. IYF - Drawdown Comparison
The maximum IYM drawdown since its inception was -67.78%, smaller than the maximum IYF drawdown of -79.09%. Use the drawdown chart below to compare losses from any high point for IYM and IYF.
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Drawdown Indicators
| IYM | IYF | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -67.78% | -79.09% | +11.31% |
Max Drawdown (1Y)Largest decline over 1 year | -13.61% | -13.88% | +0.27% |
Max Drawdown (3Y)Largest decline over 3 years | -23.62% | -16.60% | -7.02% |
Max Drawdown (5Y)Largest decline over 5 years | -29.94% | -25.06% | -4.88% |
Max Drawdown (10Y)Largest decline over 10 years | -42.76% | -42.57% | -0.19% |
Current DrawdownCurrent decline from peak | -0.61% | -3.25% | +2.64% |
Average DrawdownAverage peak-to-trough decline | -11.45% | -17.59% | +6.14% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.61% | 5.13% | -1.52% |
Volatility
IYM vs. IYF - Volatility Comparison
iShares U.S. Basic Materials ETF (IYM) has a higher volatility of 8.10% compared to iShares U.S. Financials ETF (IYF) at 4.27%. This indicates that IYM's price experiences larger fluctuations and is considered to be riskier than IYF based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| IYM | IYF | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 8.10% | 4.27% | +3.83% |
Volatility (6M)Calculated over the trailing 6-month period | 15.79% | 11.12% | +4.67% |
Volatility (1Y)Calculated over the trailing 1-year period | 19.55% | 14.58% | +4.97% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 20.53% | 19.04% | +1.49% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 21.77% | 20.90% | +0.87% |
IYM vs. IYF - Expense Ratio Comparison
Both IYM and IYF have an expense ratio of 0.42%.
Dividends
IYM vs. IYF - Dividend Comparison
IYM's dividend yield for the trailing twelve months is around 1.23%, less than IYF's 1.49% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IYF iShares U.S. Financials ETF | 1.49% | 1.32% | 1.29% | 1.67% | 1.86% | 1.27% | 1.72% | 1.64% | 1.90% | 1.46% | 1.67% | 1.66% |
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
IYM and IYF have a correlation of 0.48, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
IYM has higher volatility (8.10%) compared to IYF (4.27%). In terms of maximum drawdown, IYM dropped -67.78% vs IYF's -79.09%.
On 10-year performance, IYF leads with 13.53% vs 11.23% for IYM. Both ETFs have the same 0.42% expense ratio. On volatility, IYF has been the lower-risk option at 4.27%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, IYF has performed better with a 13.53% return vs 11.23%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
IYM and IYF have the same expense ratio: 0.42% per year.
IYF has the higher dividend yield at 1.49%, compared with 1.23% for IYM.
IYM is categorized as Materials, while IYF is Financials Equities. IYM tracks Dow Jones U.S. Basic Materials Index, while IYF tracks Dow Jones U.S. Financials Index.
IYM currently has the higher Sharpe Ratio (1.90 vs 0.84), 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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