IBDS vs VOO
iShares iBonds Dec 2027 Term Corporate ETF vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. VOO delivered stronger 1-year returns. IBDS offers more diversification with 601 holdings.
Side-by-Side Comparison
| Metric | IBDS | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.10% | 0.03% | |
| AUM | $3.8B | $979.0B | |
| Dividend Yield | 4.31% | 1.09% | |
| Holdings | 663 | 509 | |
| YTD Return | +1.59% | +13.72% | |
| 1Y Return | +3.66% | +21.63% | |
| 3Y Return (annualized) | +5.39% | +21.55% | |
| 5Y Return (annualized) | +1.36% | +13.26% | |
| Volatility (annualized) | 5.6% | 14.1% | |
| Max Drawdown | -16.8% | -34.3% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Sep 12, 2017 | Sep 7, 2010 |
IBDS vs VOO Performance
iShares iBonds Dec 2027 Term Corporate ETF (IBDS) is a ETF from iShares by BlackRock (US) and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year IBDS returned +3.66% while VOO returned +21.63%. Year to date, IBDS is up 1.59% versus a gain of 13.72% for VOO.
Over three years, IBDS compounded at +5.39% per year against +21.55% for VOO; over five years the annualized figures are +1.36% and +13.26% respectively. Across the full 9-year window we track, VOO has the edge at +13.56% annualized vs +1.85%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VOO has been the more volatile fund, with annualized monthly volatility of 14.1% compared with 5.6% for IBDS. 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 -16.8% for IBDS and -34.3% for VOO. 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 0.56. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IBDS charges 0.10% per year while VOO charges 0.03%. On a $10,000 position that is $10 vs $3 annually, a gap of $7 per year that compounds over a long holding period. On income, IBDS currently yields 4.31% against 1.09% for VOO.
Holdings Overlap
IBDS and VOO share 0 holdings out of 1106 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, IBDS or VOO?
IBDS has an expense ratio of 0.10% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $7 per year of difference.
Which performed better, IBDS or VOO?
Over the past year IBDS returned +3.66% vs +21.63% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (9 years), IBDS annualized +1.85% vs +13.56% for VOO. Past performance does not guarantee future results.
Which is riskier, IBDS or VOO?
VOO has been the more volatile fund at 14.1% annualized versus 5.6% for IBDS. Worst drawdown: IBDS -16.8% vs VOO -34.3%.
Should I hold both IBDS and VOO?
IBDS and VOO have a monthly-return correlation of 0.56, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IBDS and VOO?
IBDS and VOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1106 unique securities.
Which pays a higher dividend, IBDS or VOO?
IBDS yields 4.31% while VOO yields 1.09%, so IBDS currently pays the higher dividend yield.
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