IBDT vs VTI

IBDT vs VTI
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Quick Verdict

VTI has a lower expense ratio. VTI delivered stronger 1-year returns. VTI offers more diversification with 3,543 holdings.

Lower Fees: VTIHigher Returns: VTIMore Diversified: VTI

Side-by-Side Comparison

MetricIBDTVTIWinner
Expense Ratio0.10%0.03%
AUM$4.1B$666.9B
Dividend Yield4.52%1.07%
Holdings7303,543
YTD Return+1.50%+13.14%
1Y Return+3.71%+22.35%
3Y Return (annualized)+5.95%+21.83%
5Y Return (annualized)+1.12%+12.01%
Volatility (annualized)6.4%15.3%
Max Drawdown-17.8%-56.6%
Fund FamilyiShares by BlackRock (US)Vanguard (US)
CategoryFixed IncomeEquity
InceptionSep 18, 2018May 24, 2001

IBDT vs VTI Performance

iShares iBonds Dec 2028 Term Corporate ETF (IBDT) 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 IBDT returned +3.71% while VTI returned +22.35%. Year to date, IBDT is up 1.50% versus a gain of 13.14% for VTI.

Over three years, IBDT compounded at +5.95% per year against +21.83% for VTI; over five years the annualized figures are +1.12% and +12.01% respectively. Across the full 8-year window we track, VTI has the edge at +8.09% annualized vs +2.80%. 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 6.4% for IBDT. 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 -17.8% for IBDT 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 0.61. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

IBDT 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, IBDT currently yields 4.52% against 1.07% for VTI.

Holdings Overlap

0.0%overlap

IBDT and VTI share 1 holdings out of 3439 unique holdings combined, representing a 0.0% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in IBDTWeight in VTIDifference
HUBB0.09%0.04%0.05%

Frequently Asked Questions

Which is cheaper, IBDT or VTI?

IBDT 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, IBDT or VTI?

Over the past year IBDT returned +3.71% vs +22.35% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (8 years), IBDT annualized +2.80% vs +8.09% for VTI. Past performance does not guarantee future results.

Which is riskier, IBDT or VTI?

VTI has been the more volatile fund at 15.3% annualized versus 6.4% for IBDT. Worst drawdown: IBDT -17.8% vs VTI -56.6%.

Should I hold both IBDT and VTI?

IBDT and VTI have a monthly-return correlation of 0.61, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between IBDT and VTI?

IBDT and VTI share 1 common holdings with a 0.0% weight overlap. Combined, they hold 3439 unique securities.

Which pays a higher dividend, IBDT or VTI?

IBDT yields 4.52% while VTI yields 1.07%, so IBDT currently pays the higher dividend yield.

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