IBDQ vs VYM
iShares iBonds Dec 2025 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 568 holdings.
Side-by-Side Comparison
| Metric | IBDQ | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.10% | 0.04% | |
| AUM | $2.3B | $79.0B | |
| Dividend Yield | 3.75% | 2.86% | |
| Holdings | 21 | 568 | |
| YTD Return | +3.79% | +16.78% | |
| 1Y Return | +4.01% | +24.43% | |
| 3Y Return (annualized) | +4.57% | +18.60% | |
| 5Y Return (annualized) | +1.36% | +12.30% | |
| Volatility (annualized) | 4.1% | 14.6% | |
| Max Drawdown | -15.2% | -58.8% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Mar 11, 2015 | Nov 10, 2006 |
IBDQ vs VYM Performance
iShares iBonds Dec 2025 Term Corporate ETF (IBDQ) 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 IBDQ returned +4.01% while VYM returned +24.43%. Year to date, IBDQ is up 3.79% versus a gain of 16.78% for VYM.
Over three years, IBDQ compounded at +4.57% per year against +18.60% for VYM; over five years the annualized figures are +1.36% and +12.30% respectively. Across the full 11-year window we track, VYM has the edge at +7.11% annualized vs +3.29%. 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 4.1% for IBDQ. 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 -15.2% for IBDQ 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 0.41. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IBDQ 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, IBDQ currently yields 3.75% against 2.86% for VYM.
Holdings Overlap
IBDQ and VYM share 0 holdings out of 578 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, IBDQ or VYM?
IBDQ 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, IBDQ or VYM?
Over the past year IBDQ returned +4.01% vs +24.43% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (11 years), IBDQ annualized +3.29% vs +7.11% for VYM. Past performance does not guarantee future results.
Which is riskier, IBDQ or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 4.1% for IBDQ. Worst drawdown: IBDQ -15.2% vs VYM -58.8%.
Should I hold both IBDQ and VYM?
IBDQ and VYM have a monthly-return correlation of 0.41, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IBDQ and VYM?
IBDQ and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 578 unique securities.
Which pays a higher dividend, IBDQ or VYM?
IBDQ yields 3.75% while VYM yields 2.86%, so IBDQ currently pays the higher dividend yield.
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