IBDS vs VTI
iShares iBonds Dec 2027 Term Corporate ETF vs Vanguard Morningstar Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. VTI delivered stronger 1-year returns. VTI offers more diversification with 3,543 holdings.
Side-by-Side Comparison
| Metric | IBDS | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.10% | 0.03% | |
| AUM | $3.9B | $666.9B | |
| Dividend Yield | 4.30% | 1.07% | |
| Holdings | 663 | 3,543 | |
| YTD Return | +2.07% | +12.65% | |
| 1Y Return | +4.07% | +21.39% | |
| 3Y Return (annualized) | +5.72% | +21.54% | |
| 5Y Return (annualized) | +1.42% | +12.11% | |
| Volatility (annualized) | 5.6% | 15.3% | |
| Max Drawdown | -16.8% | -56.6% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Sep 12, 2017 | May 24, 2001 |
IBDS vs VTI Performance
iShares iBonds Dec 2027 Term Corporate ETF (IBDS) is a ETF from iShares by BlackRock (US) and Vanguard Morningstar Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year IBDS returned +4.07% while VTI returned +21.39%. Year to date, IBDS is up 2.07% versus a gain of 12.65% for VTI.
Over three years, IBDS compounded at +5.72% per year against +21.54% for VTI; over five years the annualized figures are +1.42% and +12.11% respectively. Across the full 9-year window we track, VTI has the edge at +8.07% annualized vs +1.90%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTI has been the more volatile fund, with annualized monthly volatility of 15.3% 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 -56.6% for VTI. 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 0.58. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IBDS charges 0.10% per year while VTI 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 4.30% against 1.07% for VTI.
Holdings Overlap
IBDS and VTI share 0 holdings out of 3388 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 VTI?
IBDS has an expense ratio of 0.10% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $7 per year of difference.
Which performed better, IBDS or VTI?
Over the past year IBDS returned +4.07% vs +21.39% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (9 years), IBDS annualized +1.90% vs +8.07% for VTI. Past performance does not guarantee future results.
Which is riskier, IBDS or VTI?
VTI has been the more volatile fund at 15.3% annualized versus 5.6% for IBDS. Worst drawdown: IBDS -16.8% vs VTI -56.6%.
Should I hold both IBDS and VTI?
IBDS and VTI have a monthly-return correlation of 0.58, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IBDS and VTI?
IBDS and VTI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 3388 unique securities.
Which pays a higher dividend, IBDS or VTI?
IBDS yields 4.30% while VTI yields 1.07%, so IBDS currently pays the higher dividend yield.
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