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IYM vs. IYJ
Performance
Return for Risk
Drawdowns
Volatility
Dividends

IYM vs. IYJ

Last updated Jun 14, 2026

IYM (iShares U.S. Basic Materials ETF) and IYJ (iShares U.S. Industrials ETF) are both exchange-traded funds - IYM is a Materials fund tracking the Dow Jones U.S. Basic Materials Index, while IYJ is a Industrials Equities fund tracking the Dow Jones U.S. Industrials Index. Both are passively managed. Over the past 10 years, IYM returned 11.23%/yr vs 12.54%/yr for IYJ. A 0.79 correlation means they provide meaningful diversification when combined. IYM charges 0.42%/yr vs 0.38%/yr for IYJ.

Performance

IYM vs. IYJ - Performance Comparison

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

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Returns By Period

In the year-to-date period, IYM achieves a 22.39% return, which is significantly higher than IYJ's 7.60% return. Over the past 10 years, IYM has underperformed IYJ with an annualized return of 11.23%, while IYJ has yielded a comparatively higher 12.54% 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%

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

IYM vs. IYJ - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
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%
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%

Correlation

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

IYM vs. IYJ - Sectors Allocation Comparison

Sectors
IYM
IYJ

Basic Materials

84.5%
4.1%

Industrials

11.9%
69.0%

Consumer Cyclical

3.3%
1.6%

Communication Services

-

-

Consumer Defensive

-

-

Energy

-

-

Financial Services

-

17.0%

Healthcare

-

0.4%

Real Estate

-

-

Technology

-

7.8%

Utilities

-

3.4%

Basic Materials

IYM
84.5%
IYJ
4.1%

Industrials

IYM
11.9%
IYJ
69.0%

Consumer Cyclical

IYM
3.3%
IYJ
1.6%

Communication Services

IYM

-

IYJ

-

Consumer Defensive

IYM

-

IYJ

-

Energy

IYM

-

IYJ

-

Financial Services

IYM

-

IYJ
17.0%

Healthcare

IYM

-

IYJ
0.4%

Real Estate

IYM

-

IYJ

-

Technology

IYM

-

IYJ
7.8%

Utilities

IYM

-

IYJ
3.4%

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. Basic Materials ETF

iShares U.S. Industrials ETF

Often compared with IYM:
IYM vs. VAWIYM vs. MXIIYM vs. IYYIYM vs. CSDIYM vs. VTIIYM vs. IVVIYM vs. SOXX
Often compared with IYJ:
IYJ vs. XLIIYJ vs. VISIYJ vs. EXIIYJ vs. FXRIYJ vs. EFIVIYJ vs. IYKIYJ vs. FXAIX

Return for Risk

IYM vs. IYJ — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
IYM
IYM Risk / Return Rank: 6363
Overall Rank
IYM Sharpe Ratio Rank: 6767
Sharpe Ratio Rank
IYM Sortino Ratio Rank: 6262
Sortino Ratio Rank
IYM Omega Ratio Rank: 6060
Omega Ratio Rank
IYM Calmar Ratio Rank: 6262
Calmar Ratio Rank
IYM Martin Ratio Rank: 6565
Martin Ratio Rank
IYJ
IYJ Risk / Return Rank: 2929
Overall Rank
IYJ Sharpe Ratio Rank: 2828
Sharpe Ratio Rank
IYJ Sortino Ratio Rank: 2828
Sortino Ratio Rank
IYJ Omega Ratio Rank: 2525
Omega Ratio Rank
IYJ Calmar Ratio Rank: 2828
Calmar Ratio Rank
IYJ Martin Ratio Rank: 3333
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.

IYM vs. IYJ - 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. Industrials ETF (IYJ). 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.

IYMIYJDifference
Sharpe ratioReturn per unit of total volatility
1.90
0.90

+1.01

Sortino ratioReturn per unit of downside risk
2.55
1.37

+1.18

Omega ratioGain probability vs. loss probability

1.32

1.16

+0.16

Calmar ratioReturn relative to maximum drawdown

2.74

1.24

+1.50

Martin ratioReturn relative to average drawdown

10.29

4.44

+5.85

IYM vs. IYJ - Sharpe Ratio Comparison

The current IYM Sharpe Ratio is 1.90, which is higher than the IYJ Sharpe Ratio of 0.90. The chart below compares the historical Sharpe Ratios of IYM and IYJ, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

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Drawdowns

IYM vs. IYJ - Drawdown Comparison

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

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Drawdown Indicators

IYMIYJDifference

Max Drawdown

Largest peak-to-trough decline

-67.78%

-61.97%

-5.81%

Max Drawdown (1Y)

Largest decline over 1 year

-13.61%

-11.39%

-2.22%

Max Drawdown (3Y)

Largest decline over 3 years

-23.62%

-19.67%

-3.95%

Max Drawdown (5Y)

Largest decline over 5 years

-29.94%

-26.24%

-3.70%

Max Drawdown (10Y)

Largest decline over 10 years

-42.76%

-40.20%

-2.56%

Current Drawdown

Current decline from peak

-0.61%

-1.61%

+1.00%

Average Drawdown

Average peak-to-trough decline

-11.45%

-11.20%

-0.25%

Ulcer Index

Depth and duration of drawdowns from previous peaks

3.61%

3.17%

+0.44%

Volatility

IYM vs. IYJ - Volatility Comparison

iShares U.S. Basic Materials ETF (IYM) has a higher volatility of 8.10% compared to iShares U.S. Industrials ETF (IYJ) at 5.76%. This indicates that IYM's price experiences larger fluctuations and is considered to be riskier than IYJ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

IYMIYJDifference

Volatility (1M)

Calculated over the trailing 1-month period

8.10%

5.76%

+2.34%

Volatility (6M)

Calculated over the trailing 6-month period

15.79%

12.57%

+3.22%

Volatility (1Y)

Calculated over the trailing 1-year period

19.55%

15.71%

+3.84%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

20.53%

18.14%

+2.39%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

21.77%

19.91%

+1.86%

IYM vs. IYJ - Expense Ratio Comparison

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

Dividends

IYM vs. IYJ - Dividend Comparison

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

PositionTTM20252024202320222021202020192018201720162015
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

IYM and IYJ 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.

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

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.

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.

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

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

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

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.

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