IBDU vs VYM
iShares iBonds Dec 2029 Term Corporate ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. IBDU offers more diversification with 565 holdings.
Side-by-Side Comparison
| Metric | IBDU | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.10% | 0.04% | |
| AUM | $4.0B | $79.0B | |
| Dividend Yield | 4.65% | 2.86% | |
| Holdings | 675 | 568 | |
| YTD Return | +0.63% | +16.16% | |
| 1Y Return | +2.99% | +26.05% | |
| 3Y Return (annualized) | +5.97% | +18.43% | |
| 5Y Return (annualized) | +0.97% | +12.21% | |
| Volatility (annualized) | 7.3% | 14.6% | |
| Max Drawdown | -19.5% | -58.8% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Sep 17, 2019 | Nov 10, 2006 |
IBDU vs VYM Performance
iShares iBonds Dec 2029 Term Corporate ETF (IBDU) 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 IBDU returned +2.99% while VYM returned +26.05%. Year to date, IBDU is up 0.63% versus a gain of 16.16% for VYM.
Over three years, IBDU compounded at +5.97% per year against +18.43% for VYM; over five years the annualized figures are +0.97% and +12.21% respectively. Across the full 7-year window we track, VYM has the edge at +7.09% annualized vs +1.86%. 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 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 -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 0.58. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IBDU 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, IBDU currently yields 4.65% against 2.86% for VYM.
Holdings Overlap
IBDU and VYM share 1 holdings out of 1122 unique holdings combined, representing a 0.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in IBDU | Weight in VYM | Difference |
|---|---|---|---|
| KDP | 0.18% | 0.17% | 0.01% |
Frequently Asked Questions
Which is cheaper, IBDU or VYM?
IBDU 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, IBDU or VYM?
Over the past year IBDU returned +2.99% vs +26.05% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (7 years), IBDU annualized +1.86% vs +7.09% for VYM. Past performance does not guarantee future results.
Which is riskier, IBDU or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 7.3% for IBDU. Worst drawdown: IBDU -19.5% vs VYM -58.8%.
Should I hold both IBDU and VYM?
IBDU and VYM 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 IBDU and VYM?
IBDU and VYM share 1 common holdings with a 0.2% weight overlap. Combined, they hold 1122 unique securities.
Which pays a higher dividend, IBDU or VYM?
IBDU yields 4.65% while VYM yields 2.86%, so IBDU currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.