IBDV vs VYM

Quick Verdict

VYM has a lower expense ratio. VYM delivered stronger 1-year returns. IBDV offers more diversification with 660 holdings.

Lower Fees: VYMHigher Returns: VYMMore Diversified: IBDV

Side-by-Side Comparison

MetricIBDVVYMWinner
Expense Ratio0.10%0.04%
AUM$3.3B$79.0B
Dividend Yield4.59%2.86%
Holdings731568
YTD Return-0.05%+16.10%
1Y Return+2.35%+25.99%
3Y Return (annualized)+5.78%+18.29%
5Y Return (annualized)+0.48%+12.35%
Volatility (annualized)7.1%14.6%
Max Drawdown-22.0%-58.8%
Fund FamilyiShares by BlackRock (US)Vanguard (US)
CategoryFixed IncomeEquity
InceptionJun 23, 2020Nov 10, 2006

IBDV vs VYM Performance

iShares iBonds Dec 2030 Term Corporate ETF (IBDV) 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 IBDV returned +2.35% while VYM returned +25.99%. Year to date, IBDV is down 0.05% versus a gain of 16.10% for VYM.

Over three years, IBDV compounded at +5.78% per year against +18.29% for VYM; over five years the annualized figures are +0.48% and +12.35% respectively. Across the full 6-year window we track, VYM has the edge at +7.08% annualized vs +0.75%. 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 7.1% for IBDV. 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 -22.0% for IBDV 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 0.55. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

IBDV 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, IBDV currently yields 4.59% against 2.86% for VYM.

Holdings Overlap

0.1%overlap

IBDV and VYM share 2 holdings out of 1216 unique holdings combined, representing a 0.1% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in IBDVWeight in VYMDifference
SF0.08%0.05%0.03%
GMT0.09%0.03%0.06%

Frequently Asked Questions

Which is cheaper, IBDV or VYM?

IBDV 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, IBDV or VYM?

Over the past year IBDV returned +2.35% vs +25.99% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (6 years), IBDV annualized +0.75% vs +7.08% for VYM. Past performance does not guarantee future results.

Which is riskier, IBDV or VYM?

VYM has been the more volatile fund at 14.6% annualized versus 7.1% for IBDV. Worst drawdown: IBDV -22.0% vs VYM -58.8%.

Should I hold both IBDV and VYM?

IBDV and VYM have a monthly-return correlation of 0.55, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between IBDV and VYM?

IBDV and VYM share 2 common holdings with a 0.1% weight overlap. Combined, they hold 1216 unique securities.

Which pays a higher dividend, IBDV or VYM?

IBDV yields 4.59% while VYM yields 2.86%, so IBDV currently pays the higher dividend yield.

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