IBD vs VYM
Inspire Corporate Bond ETF vs Vanguard High Dividend Yield ETF
Which is better, IBD or VYM?
VYM has been ahead.
VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window. IBD is less concentrated, with 23.5% of the fund in its ten largest positions against 26.1%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | IBD | VYM |
|---|---|---|
| Expense Ratio | 0.41% | 0.04%Best |
| AUM | $502M | $81.6B |
| Dividend Yield | 4.32% | 2.22% |
| Holdings | 248 | 613 |
| YTD Return | -0.98% | +11.47%Best |
| 1Y Return | +0.58% | +15.94%Best |
| 3Y Return (annualized) | +4.89% | +18.03%Best |
| 5Y Return (annualized) | +0.89% | +12.35%Best |
| Volatility (annualized) | 5.0%Best | 14.8% |
| Max Drawdown | -16.3%Best | -35.7% |
| $10,000 over 5 years | $10,453 | $17,901Best |
| Top 10 Weight | 23.5%Best | 26.1% |
| Fund Family | Inspire ETFs | Vanguard (US) |
| Category | Fixed Income | Equity |
| Style | - | Large Cap Value |
| Inception | Jul 10, 2017 | Nov 10, 2006 |
Volatility and max drawdown are measured over the window both funds cover: Jul 11, 2017 to Sep 21, 2026 (9.2 years).
IBD vs VYM growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 9.2 years both funds cover.
IBD vs VYM Performance
Inspire Corporate Bond ETF (IBD) is an ETF from Inspire ETFs and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year IBD returned +0.58% while VYM returned +15.94%. Year to date, IBD is down 0.98% versus a gain of 11.47% for VYM.
Over three years, IBD compounded at +4.89% per year against +18.03% for VYM; over five years the annualized figures are +0.89% and +12.35% respectively. Across the full 9-year window we track, VYM has the edge at +9.98% annualized vs +1.05%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.8% compared with 5.0% for IBD. 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 -16.3% for IBD and -35.7% for VYM. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.53. They move together some of the time, and apart the rest.
Fees and Cost Over Time
IBD charges 0.41% per year while VYM charges 0.04%. On a $10,000 position that is $41 vs $4 annually, a gap of $37 per year that compounds over a long holding period. On income, IBD currently yields 4.32% against 2.22% for VYM.
Holdings Overlap
We hold position weights for 238 holdings in IBD and 557 in VYM, totalling 97.7% and 99.2% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 238 positions we hold weights for in IBD and 557 in VYM, against full books of 248 and 613.
What only one of them owns
Measured across the 238 and 557 positions we hold weights for.
VYM holds 525 positions IBD does not, 97.1% of the fund.
Largest: AVGO 7.35%, JPM 3.82%, XOM 2.63%, JNJ 2.51%, CSCO 1.86%
You are not choosing between two funds in isolation.
Whichever of IBD and VYM you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, IBD or VYM?
IBD has an expense ratio of 0.41% while VYM charges 0.04%. VYM is the cheaper option, by $37 a year on a $10,000 investment.
Which performed better, IBD or VYM?
Over the past year IBD returned +0.58% vs +15.94% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (9 years), IBD annualized +1.05% vs +9.98% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, IBD or VYM?
VYM has been the more volatile fund at 14.8% annualized versus 5.0% for IBD. Worst drawdown: IBD -16.3% vs VYM -35.7%.
Should I hold both IBD and VYM?
IBD and VYM have a monthly-return correlation of 0.53, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, IBD or VYM?
IBD yields 4.32% while VYM yields 2.22%, so IBD currently pays the higher dividend yield.
Is VYM better than IBD?
VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window. IBD is less concentrated, with 23.5% of the fund in its ten largest positions against 26.1%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.