IBDU vs VOO

Quick Verdict

VOO has a lower expense ratio. VOO delivered stronger 1-year returns. IBDU offers more diversification with 565 holdings.

Lower Fees: VOOHigher Returns: VOOMore Diversified: IBDU

Side-by-Side Comparison

MetricIBDUVOOWinner
Expense Ratio0.10%0.03%
AUM$4.0B$979.0B
Dividend Yield4.65%1.09%
Holdings675509
YTD Return+0.72%+13.72%
1Y Return+3.00%+21.63%
3Y Return (annualized)+6.00%+21.55%
5Y Return (annualized)+1.00%+13.26%
Volatility (annualized)7.3%14.1%
Max Drawdown-19.5%-34.3%
Fund FamilyiShares by BlackRock (US)Vanguard (US)
CategoryFixed IncomeEquity
InceptionSep 17, 2019Sep 7, 2010

IBDU vs VOO Performance

iShares iBonds Dec 2029 Term Corporate ETF (IBDU) 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 IBDU returned +3.00% while VOO returned +21.63%. Year to date, IBDU is up 0.72% versus a gain of 13.72% for VOO.

Over three years, IBDU compounded at +6.00% per year against +21.55% for VOO; over five years the annualized figures are +1.00% and +13.26% respectively. Across the full 7-year window we track, VOO has the edge at +13.56% annualized vs +1.87%. 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 7.3% for IBDU. 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 -19.5% for IBDU 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 0.67. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

IBDU 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, IBDU currently yields 4.65% against 1.09% for VOO.

Holdings Overlap

0.1%overlap

IBDU and VOO share 1 holdings out of 1069 unique holdings combined, representing a 0.1% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in IBDUWeight in VOODifference
KDP0.18%0.07%0.11%

Frequently Asked Questions

Which is cheaper, IBDU or VOO?

IBDU 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, IBDU or VOO?

Over the past year IBDU returned +3.00% vs +21.63% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (7 years), IBDU annualized +1.87% vs +13.56% for VOO. Past performance does not guarantee future results.

Which is riskier, IBDU or VOO?

VOO has been the more volatile fund at 14.1% annualized versus 7.3% for IBDU. Worst drawdown: IBDU -19.5% vs VOO -34.3%.

Should I hold both IBDU and VOO?

IBDU and VOO have a monthly-return correlation of 0.67, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between IBDU and VOO?

IBDU and VOO share 1 common holdings with a 0.1% weight overlap. Combined, they hold 1069 unique securities.

Which pays a higher dividend, IBDU or VOO?

IBDU yields 4.65% while VOO yields 1.09%, so IBDU currently pays the higher dividend yield.

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