IYM vs. IYW
IYM (iShares U.S. Basic Materials ETF) and IYW (iShares U.S. Technology ETF) are both exchange-traded funds - IYM is a Materials fund tracking the Dow Jones U.S. Basic Materials Index, while IYW is a Technology Equities fund tracking the Russell 1000 Technology RIC 22.5/45 Capped Index. Both are passively managed. Over the past 10 years, IYM returned 11.23%/yr vs 25.63%/yr for IYW. A 0.58 correlation means they provide meaningful diversification when combined. IYM charges 0.42%/yr vs 0.38%/yr for IYW.
Performance
IYM vs. IYW - Performance Comparison
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Returns By Period
The year-to-date returns for both investments are quite close, with IYM having a 22.39% return and IYW slightly higher at 22.66%. Over the past 10 years, IYM has underperformed IYW with an annualized return of 11.23%, while IYW has yielded a comparatively higher 25.63% 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%
IYW
- 1D
- 0.61%
- 1M
- 0.73%
- YTD
- 22.66%
- 6M
- 23.40%
- 1Y
- 50.17%
- 3Y*
- 32.06%
- 5Y*
- 21.19%
- 10Y*
- 25.63%
IYM vs. IYW - 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% |
IYW iShares U.S. Technology ETF | 22.66% | 25.38% | 30.25% | 65.44% | -34.83% | 35.44% | 47.45% | 46.64% | -0.93% | 36.60% |
Correlation
The correlation between IYM and IYW is 0.41, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.41 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.44 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.52 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.54 |
Correlation (All Time) Calculated using the full available price history since Jun 20, 2000 | 0.58 |
The correlation between IYM and IYW shifts across timeframes, from 0.41 (1 year) to 0.58 (all time), reflecting how their relationship changes across market environments.
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Return for Risk
IYM vs. IYW — Risk / Return Rank
IYM
IYW
IYM vs. IYW - 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. Technology ETF (IYW). 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 | IYW | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.34 | ||
| Sortino ratioReturn per unit of downside risk | -0.27 | ||
| Omega ratioGain probability vs. loss probability | 1.32 | 1.38 | -0.06 |
| Calmar ratioReturn relative to maximum drawdown | 2.74 | 2.70 | +0.03 |
| Martin ratioReturn relative to average drawdown | 10.29 | 8.68 | +1.60 |
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Drawdowns
IYM vs. IYW - Drawdown Comparison
The maximum IYM drawdown since its inception was -67.78%, smaller than the maximum IYW drawdown of -81.90%. Use the drawdown chart below to compare losses from any high point for IYM and IYW.
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Drawdown Indicators
| IYM | IYW | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -67.78% | -81.90% | +14.12% |
Max Drawdown (1Y)Largest decline over 1 year | -13.61% | -17.81% | +4.20% |
Max Drawdown (3Y)Largest decline over 3 years | -23.62% | -26.47% | +2.85% |
Max Drawdown (5Y)Largest decline over 5 years | -29.94% | -39.44% | +9.50% |
Max Drawdown (10Y)Largest decline over 10 years | -42.76% | -39.44% | -3.32% |
Current DrawdownCurrent decline from peak | -0.61% | -5.81% | +5.20% |
Average DrawdownAverage peak-to-trough decline | -11.45% | -34.62% | +23.17% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.61% | 5.54% | -1.93% |
Volatility
IYM vs. IYW - Volatility Comparison
The current volatility for iShares U.S. Basic Materials ETF (IYM) is 8.10%, while iShares U.S. Technology ETF (IYW) has a volatility of 9.41%. This indicates that IYM experiences smaller price fluctuations and is considered to be less risky than IYW based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| IYM | IYW | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 8.10% | 9.41% | -1.31% |
Volatility (6M)Calculated over the trailing 6-month period | 15.79% | 17.67% | -1.88% |
Volatility (1Y)Calculated over the trailing 1-year period | 19.55% | 21.47% | -1.92% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 20.53% | 26.07% | -5.54% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 21.77% | 25.20% | -3.43% |
IYM vs. IYW - Expense Ratio Comparison
IYM has a 0.42% expense ratio, which is higher than IYW's 0.38% expense ratio.
Dividends
IYM vs. IYW - Dividend Comparison
IYM's dividend yield for the trailing twelve months is around 1.23%, more than IYW's 0.11% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
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% |
IYW iShares U.S. Technology ETF | 0.11% | 0.14% | 0.21% | 0.34% | 0.50% | 0.31% | 0.56% | 0.72% | 0.92% | 0.82% | 1.14% | 1.12% |
Frequently Asked Questions
IYM and IYW have a correlation of 0.41, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
IYW has higher volatility (9.41%) compared to IYM (8.10%). In terms of maximum drawdown, IYM dropped -67.78% vs IYW's -81.90%.
On 10-year performance, IYW leads with 25.63% vs 11.23% for IYM. On fees, IYW is cheaper at 0.38% per year. On volatility, IYM has been the lower-risk option at 8.10%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, IYW has performed better with a 25.63% return vs 11.23%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
IYW 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 0.11% for IYW.
IYM is categorized as Materials, while IYW is Technology Equities. IYM tracks Dow Jones U.S. Basic Materials Index, while IYW tracks Russell 1000 Technology RIC 22.5/45 Capped Index. Their fees differ too: 0.42% for IYM and 0.38% for IYW.
IYW currently has the higher Sharpe Ratio (2.24 vs 1.90), 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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