VYM vs. IYW
VYM (Vanguard High Dividend Yield ETF) and IYW (iShares U.S. Technology ETF) are both exchange-traded funds - VYM is a Dividend fund tracking the FTSE High Dividend Yield 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, VYM returned 11.36%/yr vs 24.67%/yr for IYW. A 0.67 correlation means they provide meaningful diversification when combined. VYM charges 0.04%/yr vs 0.38%/yr for IYW.
Performance
VYM vs. IYW - Performance Comparison
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Returns By Period
In the year-to-date period, VYM achieves a 12.42% return, which is significantly lower than IYW's 20.26% return. Over the past 10 years, VYM has underperformed IYW with an annualized return of 11.36%, while IYW has yielded a comparatively higher 24.67% annualized return.
VYM
- 1D
- -0.47%
- 1M
- 0.76%
- 6M
- 8.38%
- YTD
- 12.42%
- 1Y
- 21.30%
- 3Y*
- 16.51%
- 5Y*
- 11.99%
- 10Y*
- 11.36%
- ALL TIME*
- 9.30%
IYW
- 1D
- 0.31%
- 1M
- -5.36%
- 6M
- 20.13%
- YTD
- 20.26%
- 1Y
- 34.44%
- 3Y*
- 29.86%
- 5Y*
- 19.12%
- 10Y*
- 24.67%
- ALL TIME*
- 9.20%
VYM vs. IYW - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VYM Vanguard High Dividend Yield ETF | 12.42% | 15.42% | 17.60% | 6.57% | -0.43% | 26.20% | 1.15% | 24.06% | -5.92% | 16.42% |
IYW iShares U.S. Technology ETF | 20.26% | 25.38% | 30.25% | 65.44% | -34.83% | 35.44% | 47.45% | 46.64% | -0.93% | 36.60% |
Correlation
The correlation between VYM 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 | 0.45 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.54 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.56 |
Correlation (All Time) Calculated using the full available price history since Nov 16, 2006 | 0.67 |
Over the past year, the correlation between VYM and IYW has dropped to 0.41 - well below their long-term average of 0.67, suggesting their price drivers have been diverging.
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Return for Risk
VYM vs. IYW — Risk / Return Rank
VYM
IYW
VYM vs. IYW - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard High Dividend Yield ETF (VYM) 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.
| VYM | IYW | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.60 | ||
| Sortino ratioReturn per unit of downside risk | +1.03 | ||
| Omega ratioGain probability vs. loss probability | 1.38 | 1.26 | +0.12 |
| Calmar ratioReturn relative to maximum drawdown | 3.20 | 1.94 | +1.25 |
| Martin ratioReturn relative to average drawdown | 11.87 | 5.97 | +5.90 |
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Drawdowns
VYM vs. IYW - Drawdown Comparison
The maximum VYM drawdown since its inception was -56.98%, smaller than the maximum IYW drawdown of -81.90%. Use the drawdown chart below to compare losses from any high point for VYM and IYW.
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Drawdown Indicators
| VYM | IYW | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -56.98% | -81.90% | +24.92% |
Max Drawdown (1Y)Largest decline over 1 year | -6.69% | -17.81% | +11.12% |
Max Drawdown (3Y)Largest decline over 3 years | -14.46% | -26.47% | +12.01% |
Max Drawdown (5Y)Largest decline over 5 years | -15.84% | -39.44% | +23.60% |
Max Drawdown (10Y)Largest decline over 10 years | -35.21% | -39.44% | +4.23% |
Current DrawdownCurrent decline from peak | -1.02% | -7.66% | +6.64% |
Average DrawdownAverage peak-to-trough decline | -7.15% | -34.51% | +27.36% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.80% | 5.78% | -3.98% |
Volatility
VYM vs. IYW - Volatility Comparison
The current volatility for Vanguard High Dividend Yield ETF (VYM) is 1.78%, while iShares U.S. Technology ETF (IYW) has a volatility of 8.60%. This indicates that VYM 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
| VYM | IYW | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.78% | 8.60% | -6.82% |
Volatility (6M)Calculated over the trailing 6-month period | 7.49% | 19.42% | -11.93% |
Volatility (1Y)Calculated over the trailing 1-year period | 10.22% | 23.17% | -12.95% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 13.87% | 26.37% | -12.50% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 16.29% | 25.30% | -9.01% |
VYM vs. IYW - Expense Ratio Comparison
VYM has a 0.04% expense ratio, which is lower than IYW's 0.38% expense ratio.
Dividends
VYM vs. IYW - Dividend Comparison
VYM's dividend yield for the trailing twelve months is around 2.28%, more than IYW's 0.11% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
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% |
VYM Vanguard High Dividend Yield ETF | 2.28% | 2.44% | 2.74% | 3.12% | 3.01% | 2.76% | 3.18% | 3.03% | 3.40% | 2.80% | 2.91% | 3.22% |
Frequently Asked Questions
VYM 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 (8.60%) compared to VYM (1.78%). In terms of maximum drawdown, VYM dropped -56.98% vs IYW's -81.90%.
On 10-year performance, IYW leads with 24.67% vs 11.36% for VYM. On fees, VYM is cheaper at 0.04% per year. On volatility, VYM has been the lower-risk option at 1.78%. 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 24.67% return vs 11.36%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VYM is cheaper with a 0.04% expense ratio, compared with 0.38% for IYW.
VYM has the higher dividend yield at 2.28%, compared with 0.11% for IYW.
VYM is categorized as Dividend, while IYW is Technology Equities. VYM tracks FTSE High Dividend Yield Index, while IYW tracks Russell 1000 Technology RIC 22.5/45 Capped Index. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.04% for VYM and 0.38% for IYW.
VYM currently has the higher Sharpe Ratio (2.10 vs 1.50), 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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