IBDR vs VYM
iShares iBonds Dec 2026 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 | IBDR | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.10% | 0.04% | |
| AUM | $3.4B | $79.0B | |
| Dividend Yield | 4.12% | 2.86% | |
| Holdings | 264 | 568 | |
| YTD Return | +1.82% | +16.10% | |
| 1Y Return | +3.74% | +25.99% | |
| 3Y Return (annualized) | +5.16% | +18.29% | |
| 5Y Return (annualized) | +1.57% | +12.35% | |
| Volatility (annualized) | 4.6% | 14.6% | |
| Max Drawdown | -16.1% | -58.8% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Sep 13, 2016 | Nov 10, 2006 |
IBDR vs VYM Performance
iShares iBonds Dec 2026 Term Corporate ETF (IBDR) 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 IBDR returned +3.74% while VYM returned +25.99%. Year to date, IBDR is up 1.82% versus a gain of 16.10% for VYM.
Over three years, IBDR compounded at +5.16% per year against +18.29% for VYM; over five years the annualized figures are +1.57% and +12.35% respectively. Across the full 10-year window we track, VYM has the edge at +7.08% annualized vs +1.54%. 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 4.6% for IBDR. 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 -16.1% for IBDR 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
IBDR 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, IBDR currently yields 4.12% against 2.86% for VYM.
Holdings Overlap
IBDR and VYM share 0 holdings out of 781 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, IBDR or VYM?
IBDR 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, IBDR or VYM?
Over the past year IBDR returned +3.74% vs +25.99% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (10 years), IBDR annualized +1.54% vs +7.08% for VYM. Past performance does not guarantee future results.
Which is riskier, IBDR or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 4.6% for IBDR. Worst drawdown: IBDR -16.1% vs VYM -58.8%.
Should I hold both IBDR and VYM?
IBDR 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 IBDR and VYM?
IBDR and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 781 unique securities.
Which pays a higher dividend, IBDR or VYM?
IBDR yields 4.12% while VYM yields 2.86%, so IBDR currently pays the higher dividend yield.
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