IYM vs. VAW
Compare and contrast key facts about iShares U.S. Basic Materials ETF (IYM) and Vanguard Materials ETF (VAW).
IYM and VAW are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. IYM is a passively managed fund by iShares that tracks the performance of the Dow Jones U.S. Basic Materials Index. It was launched on Jun 20, 2000. VAW is a passively managed fund by Vanguard that tracks the performance of the MSCI US Investable Market Materials 25/50 Index. It was launched on Jan 26, 2004. Both IYM and VAW are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: IYM or VAW.
Key characteristics
| IYM | VAW | |
|---|---|---|
| YTD Return | 5.65% | 10.34% |
| 1Y Return | 18.61% | 24.56% |
| 3Y Return (Ann) | 2.51% | 3.52% |
| 5Y Return (Ann) | 10.43% | 11.57% |
| 10Y Return (Ann) | 7.32% | 8.72% |
| Sharpe Ratio | 1.25 | 1.67 |
| Sortino Ratio | 1.79 | 2.34 |
| Omega Ratio | 1.22 | 1.29 |
| Calmar Ratio | 1.07 | 1.92 |
| Martin Ratio | 5.17 | 8.20 |
| Ulcer Index | 3.55% | 2.96% |
| Daily Std Dev | 14.70% | 14.53% |
| Max Drawdown | -67.78% | -62.17% |
| Current Drawdown | -5.77% | -3.74% |
Correlation
The correlation between IYM and VAW is 0.98, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
IYM vs. VAW - Performance Comparison
In the year-to-date period, IYM achieves a 5.65% return, which is significantly lower than VAW's 10.34% return. Over the past 10 years, IYM has underperformed VAW with an annualized return of 7.32%, while VAW has yielded a comparatively higher 8.72% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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IYM vs. VAW - Expense Ratio Comparison
IYM has a 0.42% expense ratio, which is higher than VAW's 0.10% expense ratio.
Risk-Adjusted Performance
IYM vs. VAW - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares U.S. Basic Materials ETF (IYM) and Vanguard Materials ETF (VAW). 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.
Dividends
IYM vs. VAW - Dividend Comparison
IYM's dividend yield for the trailing twelve months is around 1.60%, more than VAW's 1.56% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IYM iShares U.S. Basic Materials ETF | 1.60% | 1.77% | 2.14% | 1.48% | 1.39% | 2.09% | 1.68% | 1.43% | 1.47% | 2.03% | 1.77% | 1.79% |
VAW Vanguard Materials ETF | 1.56% | 1.72% | 1.98% | 1.44% | 1.67% | 1.94% | 2.03% | 1.63% | 1.67% | 2.30% | 1.76% | 1.84% |
Drawdowns
IYM vs. VAW - Drawdown Comparison
The maximum IYM drawdown since its inception was -67.78%, which is greater than VAW's maximum drawdown of -62.17%. Use the drawdown chart below to compare losses from any high point for IYM and VAW. For additional features, visit the drawdowns tool.
Volatility
IYM vs. VAW - Volatility Comparison
iShares U.S. Basic Materials ETF (IYM) and Vanguard Materials ETF (VAW) have volatilities of 4.00% and 4.01%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.