IBCA vs VYM
iShares iBonds Dec 2035 Term Corporate ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | IBCA | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.10% | 0.04% | |
| AUM | $373M | $79.0B | |
| Dividend Yield | 4.65% | 2.86% | |
| Holdings | 417 | 568 | |
| YTD Return | -0.58% | +15.80% | |
| 1Y Return | +2.29% | +26.12% | |
| 3Y Return (annualized) | - | +18.25% | |
| 5Y Return (annualized) | - | +12.51% | |
| Volatility (annualized) | 3.7% | 14.6% | |
| Max Drawdown | -3.5% | -58.8% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Mar 25, 2025 | Nov 10, 2006 |
IBCA vs VYM Performance
iShares iBonds Dec 2035 Term Corporate ETF (IBCA) is a ETF from iShares by BlackRock (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year IBCA returned +2.29% while VYM returned +26.12%. Year to date, IBCA is down 0.58% versus a gain of 15.80% for VYM.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 3.7% for IBCA. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -3.5% for IBCA and -58.8% for VYM. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.50. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IBCA charges 0.10% per year while VYM charges 0.04%. On a $10,000 position that is $10 vs $4 annually, a gap of $6 per year that compounds over a long holding period. On income, IBCA currently yields 4.65% against 2.86% for VYM.
Holdings Overlap
IBCA and VYM share 0 holdings out of 894 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, IBCA or VYM?
IBCA has an expense ratio of 0.10% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $6 per year of difference.
Which performed better, IBCA or VYM?
Over the past year IBCA returned +2.29% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (1 years), IBCA annualized +4.65% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, IBCA or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 3.7% for IBCA. Worst drawdown: IBCA -3.5% vs VYM -58.8%.
Should I hold both IBCA and VYM?
IBCA and VYM have a monthly-return correlation of 0.50, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IBCA and VYM?
IBCA and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 894 unique securities.
Which pays a higher dividend, IBCA or VYM?
IBCA yields 4.65% while VYM yields 2.86%, so IBCA currently pays the higher dividend yield.
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