At a glance
IYM charges 0.37% a year, above the 0.33% average of the 8 funds most like it (the 5th cheapest of 9). It has $1.16B in assets, the 4th largest of that group; it paid 1.27% of its price in distributions over the past 12 months, quarterly. Over the past year it returned +24.9% with distributions reinvested (S&P 500: +11.5%), the best of those 9 funds; over three years it returned +16.2% a year. At its worst it fell 37.7% in the 2020 crash (S&P 500: 33.7%) and 29.9% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 4 months and 18 months after the lows. Its ten largest positions make up 67.5% of the fund, out of 39 in all.
The short version
The iShares U.S. Basic Materials ETF (IYM) is a BlackRock index fund that tracks the Russell 1000 Basic Materials RIC 22.5/45 Capped Index, which holds large and mid-sized U.S. materials companies. It is concentrated. As of July 31, 2026, Linde alone made up about 20% of assets and the top 10 holdings about 68%. Its 0.37% expense ratio is about four times the 0.09% charged by Vanguard Materials ETF.
Price history
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IYM +24.9% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| IYM official prospectus, to Dec 31, 2025 | — | +20.41% | — | +8.14% | +9.99% | — |
| Russell3000Index index, same period | — | +17.15% | — | +13.15% | +14.29% | — |
| Russell1000Basic Materials RIC22545Capped Index index, same period | — | +20.91% | — | +8.56% | +10.42% | — |
| IYM price data to Oct 27, 2026 | +18.9% | +24.9% | +16.2% | +8.3% | +10.8% | +8.4% |
- Over the year to Oct 27, 2026, IYM returned +24.9%, 1st of 9 among similar funds.
- Its 5-year annualized return was +8.3% and its 10-year +10.8%.
- In the 2020 COVID crash it fell 37.7% and regained its old high 3.7 months after the low.
- Its worst full calendar year was 2008 (-50.7%); its best was 2009 (+64.3%).
- The deepest fall in its price history was 67.8% (Jun 18, 2008 to Nov 20, 2008), recovered by Dec 24, 2013.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +18.9% | — |
| 2025 | +20.4% | +20.41% |
| 2024 | -4.5% | -4.53% |
| 2023 | +12.8% | +12.73% |
| 2022 | -9.1% | -9.07% |
| 2021 | +25.6% | +25.52% |
| 2020 | +17.9% | +17.83% |
| 2019 | +19.2% | +19.25% |
| 2018 | -16.6% | -16.49% |
| 2017 | +24.8% | +24.74% |
| 2016 | +19.8% | +19.74% |
| 2015 | -12.8% | — |
| 2014 | +3.0% | — |
| 2013 | +19.9% | — |
| 2012 | +9.9% | — |
| 2011 | -15.2% | — |
| 2010 | +31.0% | — |
| 2009 | +64.3% | — |
| 2008 | -50.7% | — |
| 2007 | +32.2% | — |
| 2006 | +17.1% | — |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Lost 61.1% over that stretch · deepest drop along the way 67.8%, back to its old high 61.1 months after the low |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 37.6% over that stretch · deepest drop along the way 37.7%, back to its old high 3.7 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 19.7% over that stretch · deepest drop along the way 29.9%, back to its old high 18.2 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $1.5500 | |
| 2025 | $2.3300 | +8.9% |
| 2024 | $2.1400 | -12.7% |
| 2023 | $2.4500 | -8.6% |
| 2022 | $2.6800 | +28.8% |
| 2021 | $2.0800 | +31.6% |
| 2020 | $1.5800 | -22.5% |
| 2019 | $2.0400 | +43.7% |
| 2018 | $1.4200 | -2.1% |
| 2017 | $1.4500 | +18.9% |
| 2016 | $1.2200 | -15.3% |
| 2015 | $1.4400 | -1.4% |
| 2014 | $1.4600 | +0.5% |
| 2013 | $1.4530 | +8.0% |
| 2012 | $1.3450 | -5.9% |
| 2011 | $1.4300 | +65.1% |
| 2010 | $0.8660 | +1.3% |
| 2009 | $0.8550 | -27.6% |
| 2008 | $1.1810 | +13.0% |
| 2007 | $1.0450 | -11.0% |
| 2006 | $1.1740 |
What's inside
As of Jul 31, 2026, the fund held 39 securities; the ten largest made up 67.54% of assets.
| Holding | Weight | |
|---|---|---|
| LINDE PUBLIC LIMITED COMPANY | 20.35% | |
| NEWMONT CORPORATION | 9.28% | |
| FREEPORT-MCMORAN INC. | 8.33% | |
| ECOLAB INC. | 6.44% | |
| AIR PRODUCTS AND CHEMICALS, INC. | 5.01% | |
| NUCOR CORPORATION | 4.53% | |
| FASTENAL COMPANY | 4.48% | |
| ANGLOGOLD ASHANTI PLC | 3.40% | |
| STEEL DYNAMICS, INC. | 3.13% | |
| CARPENTER TECHNOLOGY CORPORATION | 2.60% | |
| INTERNATIONAL PAPER COMPANY | 2.23% | |
| RELIANCE, INC. | 2.16% | |
| INTERNATIONAL FLAVORS & FRAGRANCES INC. | 2.11% | |
| CF INDUSTRIES HOLDINGS, INC. | 2.00% | |
| RBC BEARINGS INCORPORATED | 1.79% |
By country
United States 73.95%Ireland 20.35%United Kingdom 3.4%Netherlands 1.67%Canada 0.25%By asset type
Stocks 99.85%By sector
Sectors of the companies held, for the 40.3% of the fund in companies that have a stock page here; other holdings and cash aren't classified. Source: N-PORT holdings report as of Jul 31, 2026. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Jul 31, 2026, investors withdrew a net $320.4M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +1.81%, -2.54%, -2.15%.
How it works
IYM follows an index built by FTSE Russell, part of the London Stock Exchange Group. The index starts with the Russell 1000, about the 1,000 largest U.S. companies, and keeps only the basic materials sector. Each company is weighted by float-adjusted market value. That means bigger companies count for more, based only on shares freely available to trade.
Caps keep any one stock from taking over. At each quarterly rebalance, no single company can exceed 22.5% of the index. Together, all companies above 4.5% can't exceed 45%. Between rebalances, weights can drift past these limits as prices move. As of July 31, 2026, Linde was about 20.4% of the fund, followed by Newmont at 9.3% and Freeport-McMoRan at 8.3%.
BlackRock uses "representative sampling." It may hold a sample of index stocks that together behave like the index, rather than every one. The fund must keep at least 80% of its net assets in index components. It may use derivatives such as futures, though as of July 31, 2026, it held one futures contract worth close to 0% of assets. It may also lend up to one-third of its assets to other investors for a fee. Portfolio turnover was 18%, so trading inside the fund is modest.
What it really costs
- IYM charges 0.37% a year, versus an average of 0.33% for the similar funds below (5th of 9, cheapest first).
- Using the prospectus's standard example, $10,000 invested would cost about $38 in the first year and $468 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| IYM | $38 | $119 | $208 | $468 |
In a retirement portfolio
It is a concentrated single-sector stock fund whose deepest drop was 67.8%, so it may fit as a small add-on rather than a foundation.
IYM adds exposure to materials companies, whose results tend to follow commodity prices and industrial demand. It has fallen hard in downturns. From June 18 to November 20, 2008, it lost 67.8% and needed about 61 months, until December 2013, to recover. Its worst calendar year was 2008, down 50.7%. It fell 37.7% in the 2020 COVID crash but recovered in about four months. It dropped 29.9% in 2022 and took about 18 months to recover. Anyone forced to sell shares or draw income during a slump like that could lock in deep losses.
The trailing 12-month yield was 1.27% as of October 27, 2026, paid quarterly, so it is a modest income source. Its 0.37% fee is above the 0.33% average of similar funds. Past results don't predict future ones, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors wanting a small, targeted slice of U.S. materials stocks such as Linde, Newmont and Freeport-McMoRan, about 38% of assets as of July 31, 2026.
- Long-term holders who can ride out sharp swings, including a 67.8% drop in 2008 that took about five years to recover.
- Investors who value low trading inside the fund (18% turnover) and quarterly dividends, with a 1.27% yield as of October 27, 2026.
Look elsewhere if
- Cost-focused investors: Vanguard Materials ETF (0.09%) and Fidelity MSCI Materials Index ETF (0.084%) charge far less than IYM's 0.37%.
- Retirees who need steady income, since the 1.27% trailing yield is modest and the fund has fallen sharply in downturns.
- Investors seeking broad diversification: IYM held 39 stocks, and over the 10 years to December 31, 2025, it returned 9.99% a year versus 14.29% for the Russell 3000.
Close alternatives
Matched by holdings overlap from the latest N-PORT reports.
| Fund | Overlap | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| IYM this fund | — | 0.37% | $1.16B | +24.9% | +16.2% |
| VAW Vanguard Materials ETF | 62% | 0.09% | $4.55B | +13.9% | +13.3% |
| FMAT Fidelity MSCI Materials Index ETF | 59% | 0.084% | $578.7M | +13.8% | +13.3% |
| FXZ First Trust Materials AlphaDEX Fund | 56% | 0.61% | $368.2M | +24.0% | +10.5% |
| XLB Materials Select Sector SPDR Fund | 53% | 0.08% | $8.17B | +18.5% | -10.3% |
| PYZ Invesco Dorsey Wright Basic Materials Momen… | 38% | 0.6% | $72.1M | +6.6% | +17.0% |
| RSPM Invesco S&P 500 Equal Weight Materials ETF | 37% | 0.4% | $177.6M | +21.6% | +12.8% |
| MXI iShares Global Materials ETF | 25% | 0.42% | $339.6M | +20.2% | +15.8% |
Questions investors ask
What does IYM invest in?
IYM invests in large and mid-sized U.S. basic materials stocks by tracking the Russell 1000 Basic Materials RIC 22.5/45 Capped Index. As of July 31, 2026, it held 39 companies. The largest were Linde (about 20.4%), Newmont (9.3%), Freeport-McMoRan (8.3%), Ecolab (6.4%) and Air Products and Chemicals (5.0%). The top 10 made up about 68% of the fund. About 74% was in U.S.-based companies and about 20% in Ireland, which reflects Linde's Irish registration.
What's the difference between IYM and VAW?
The biggest difference is cost. IYM charges 0.37% a year, while Vanguard Materials ETF (VAW) charges 0.09%. The two funds overlap by about 62% in holdings, so they own many of the same companies. Over the year to October 27, 2026, IYM returned 24.9% versus 13.9% for VAW. VAW is also larger, with about $4.5 billion in net assets as of August 31, 2026, compared with about $1.2 billion for IYM as of July 31, 2026.
Does IYM pay dividends?
Yes. IYM pays dividends quarterly. Over the 12 months to October 27, 2026, it paid $2.31 per share, a trailing yield of 1.27%. The payouts come from dividends paid by the companies the fund owns, so they can rise or fall over time. With a yield that low, the fund offers modest income. Its appeal is mostly sector exposure rather than cash flow.
What is IYM's expense ratio?
IYM's expense ratio is 0.37%, according to its prospectus filed August 21, 2026. That is all management fee, with no waiver. In the SEC's standard example, $10,000 invested with a 5% yearly return would cost about $38 after one year, $208 after five years and $468 after ten years. The average for similar funds is 0.33%, and several materials index ETFs charge less than 0.10%.
Is IYM a risky ETF?
Yes. IYM is more volatile than a broad stock fund because it holds one sector, and a few companies make up much of it. Its largest drop was 67.8% from June to November 2008, and it took about 61 months to recover. It lost 50.7% in 2008 and fell 37.7% in the 2020 crash. Its worst quarter was a 29.02% loss in early 2020. Price volatility was 20% over the year to October 27, 2026.