IYZ vs. VEA
IYZ (iShares U.S. Telecommunications ETF) and VEA (Vanguard FTSE Developed Markets ETF) are both exchange-traded funds - IYZ is a Communications Equities fund tracking the Dow Jones U.S. Select Telecommunications Index, while VEA is a Foreign Large Cap Equities fund tracking the FTSE Developed All Cap ex US Index. Both are passively managed. Over the past 10 years, IYZ returned 5.94%/yr vs 10.72%/yr for VEA. A 0.66 correlation means they provide meaningful diversification when combined. IYZ charges 0.42%/yr vs 0.03%/yr for VEA.
Performance
IYZ vs. VEA - Performance Comparison
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Returns By Period
In the year-to-date period, IYZ achieves a 29.57% return, which is significantly higher than VEA's 14.73% return. Over the past 10 years, IYZ has underperformed VEA with an annualized return of 5.94%, while VEA has yielded a comparatively higher 10.72% annualized return.
IYZ
- 1D
- 1.27%
- 1M
- 2.31%
- YTD
- 29.57%
- 6M
- 32.60%
- 1Y
- 58.27%
- 3Y*
- 28.37%
- 5Y*
- 7.57%
- 10Y*
- 5.94%
VEA
- 1D
- 0.34%
- 1M
- 3.58%
- YTD
- 14.73%
- 6M
- 16.65%
- 1Y
- 31.41%
- 3Y*
- 19.03%
- 5Y*
- 9.51%
- 10Y*
- 10.72%
IYZ vs. VEA - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
IYZ iShares U.S. Telecommunications ETF | 29.57% | 29.28% | 20.53% | 3.90% | -30.29% | 11.69% | 4.13% | 16.14% | -8.59% | -11.86% |
VEA Vanguard FTSE Developed Markets ETF | 14.73% | 35.16% | 3.15% | 17.93% | -15.34% | 11.66% | 9.71% | 22.62% | -14.75% | 26.42% |
Correlation
The correlation between IYZ and VEA is 0.50, 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 | 0.50 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.53 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.61 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.61 |
Correlation (All Time) Calculated using the full available price history since Jul 26, 2007 | 0.66 |
The correlation between IYZ and VEA shifts across timeframes, from 0.50 (1 year) to 0.66 (all time), reflecting how their relationship changes across market environments.
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Return for Risk
IYZ vs. VEA — Risk / Return Rank
IYZ
VEA
IYZ vs. VEA - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares U.S. Telecommunications ETF (IYZ) and Vanguard FTSE Developed Markets ETF (VEA). 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.
| IYZ | VEA | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.21 | ||
| Sortino ratioReturn per unit of downside risk | +1.44 | ||
| Omega ratioGain probability vs. loss probability | 1.52 | 1.33 | +0.19 |
| Calmar ratioReturn relative to maximum drawdown | 6.54 | 2.58 | +3.96 |
| Martin ratioReturn relative to average drawdown | 25.99 | 9.92 | +16.07 |
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Drawdowns
IYZ vs. VEA - Drawdown Comparison
The maximum IYZ drawdown since its inception was -77.11%, which is greater than VEA's maximum drawdown of -60.68%. Use the drawdown chart below to compare losses from any high point for IYZ and VEA.
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Drawdown Indicators
| IYZ | VEA | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -77.11% | -60.68% | -16.43% |
Max Drawdown (1Y)Largest decline over 1 year | -8.62% | -11.63% | +3.01% |
Max Drawdown (3Y)Largest decline over 3 years | -13.85% | -13.45% | -0.40% |
Max Drawdown (5Y)Largest decline over 5 years | -39.74% | -29.71% | -10.03% |
Max Drawdown (10Y)Largest decline over 10 years | -39.74% | -35.73% | -4.01% |
Current DrawdownCurrent decline from peak | -4.77% | -1.06% | -3.71% |
Average DrawdownAverage peak-to-trough decline | -40.10% | -13.28% | -26.82% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.17% | 3.02% | -0.85% |
Volatility
IYZ vs. VEA - Volatility Comparison
iShares U.S. Telecommunications ETF (IYZ) has a higher volatility of 8.76% compared to Vanguard FTSE Developed Markets ETF (VEA) at 6.84%. This indicates that IYZ's price experiences larger fluctuations and is considered to be riskier than VEA based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| IYZ | VEA | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 8.76% | 6.84% | +1.92% |
Volatility (6M)Calculated over the trailing 6-month period | 15.61% | 14.38% | +1.23% |
Volatility (1Y)Calculated over the trailing 1-year period | 18.65% | 16.58% | +2.07% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 18.88% | 16.72% | +2.16% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 19.30% | 17.40% | +1.90% |
IYZ vs. VEA - Expense Ratio Comparison
IYZ has a 0.42% expense ratio, which is higher than VEA's 0.03% expense ratio.
Dividends
IYZ vs. VEA - Dividend Comparison
IYZ's dividend yield for the trailing twelve months is around 1.53%, less than VEA's 2.62% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IYZ iShares U.S. Telecommunications ETF | 1.53% | 2.04% | 1.94% | 2.27% | 2.55% | 2.51% | 2.60% | 2.36% | 2.15% | 3.54% | 2.27% | 1.98% |
VEA Vanguard FTSE Developed Markets ETF | 2.62% | 3.22% | 3.35% | 3.15% | 2.91% | 3.16% | 2.04% | 3.04% | 3.35% | 2.77% | 3.05% | 2.92% |
Frequently Asked Questions
IYZ and VEA have a correlation of 0.50, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
IYZ has higher volatility (8.76%) compared to VEA (6.84%). In terms of maximum drawdown, IYZ dropped -77.11% vs VEA's -60.68%.
On 10-year performance, VEA leads with 10.72% vs 5.94% for IYZ. On fees, VEA is cheaper at 0.03% per year. On volatility, VEA has been the lower-risk option at 6.84%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, VEA has performed better with a 10.72% return vs 5.94%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VEA is cheaper with a 0.03% expense ratio, compared with 0.42% for IYZ.
VEA has the higher dividend yield at 2.62%, compared with 1.53% for IYZ.
IYZ is categorized as Communications Equities, while VEA is Foreign Large Cap Equities. IYZ tracks Dow Jones U.S. Select Telecommunications Index, while VEA tracks FTSE Developed All Cap ex US Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.42% for IYZ and 0.03% for VEA.
IYZ currently has the higher Sharpe Ratio (3.02 vs 1.81), 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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