IBD vs VYM
Inspire Corporate Bond 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 | IBD | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.43% | 0.04% | |
| AUM | $485M | $79.0B | |
| Dividend Yield | 4.26% | 2.86% | |
| Holdings | 251 | 568 | |
| YTD Return | -0.13% | +15.80% | |
| 1Y Return | +2.47% | +26.12% | |
| 3Y Return (annualized) | +4.83% | +18.25% | |
| 5Y Return (annualized) | +1.03% | +12.51% | |
| Volatility (annualized) | 5.0% | 14.6% | |
| Max Drawdown | -16.3% | -58.8% | |
| Fund Family | Inspire ETFs | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jul 10, 2017 | Nov 10, 2006 |
IBD vs VYM Performance
Inspire Corporate Bond ETF (IBD) is a ETF from Inspire ETFs and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year IBD returned +2.47% while VYM returned +26.12%. Year to date, IBD is down 0.13% versus a gain of 15.80% for VYM.
Over three years, IBD compounded at +4.83% per year against +18.25% for VYM; over five years the annualized figures are +1.03% and +12.51% respectively. Across the full 9-year window we track, VYM has the edge at +7.07% annualized vs +1.16%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% 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 -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 0.53. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IBD charges 0.43% per year while VYM charges 0.04%. On a $10,000 position that is $43 vs $4 annually, a gap of $39 per year that compounds over a long holding period. On income, IBD currently yields 4.26% against 2.86% for VYM.
Holdings Overlap
IBD and VYM share 0 holdings out of 805 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, IBD or VYM?
IBD has an expense ratio of 0.43% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $39 per year of difference.
Which performed better, IBD or VYM?
Over the past year IBD returned +2.47% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (9 years), IBD annualized +1.16% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, IBD or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 5.0% for IBD. Worst drawdown: IBD -16.3% vs VYM -58.8%.
Should I hold both IBD and VYM?
IBD and VYM have a monthly-return correlation of 0.53, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IBD and VYM?
IBD and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 805 unique securities.
Which pays a higher dividend, IBD or VYM?
IBD yields 4.26% while VYM yields 2.86%, so IBD currently pays the higher dividend yield.
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