IBDW vs VOO
iShares iBonds Dec 2031 Term Corporate ETF vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. VOO delivered stronger 1-year returns. VOO offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | IBDW | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.10% | 0.03% | |
| AUM | $2.5B | $979.0B | |
| Dividend Yield | 4.78% | 1.09% | |
| Holdings | 610 | 509 | |
| YTD Return | -0.15% | +13.72% | |
| 1Y Return | +2.35% | +21.63% | |
| 3Y Return (annualized) | +6.20% | +21.55% | |
| 5Y Return (annualized) | +0.15% | +13.26% | |
| Volatility (annualized) | 8.2% | 14.1% | |
| Max Drawdown | -23.9% | -34.3% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jun 22, 2021 | Sep 7, 2010 |
IBDW vs VOO Performance
iShares iBonds Dec 2031 Term Corporate ETF (IBDW) 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 IBDW returned +2.35% while VOO returned +21.63%. Year to date, IBDW is down 0.15% versus a gain of 13.72% for VOO.
Over three years, IBDW compounded at +6.20% per year against +21.55% for VOO; over five years the annualized figures are +0.15% and +13.26% respectively. Across the full 5-year window we track, VOO has the edge at +13.56% annualized vs +0.39%. 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 8.2% for IBDW. 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 -23.9% for IBDW 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 0.69. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IBDW 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, IBDW currently yields 4.78% against 1.09% for VOO.
Holdings Overlap
IBDW and VOO share 0 holdings out of 936 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, IBDW or VOO?
IBDW 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, IBDW or VOO?
Over the past year IBDW returned +2.35% vs +21.63% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (5 years), IBDW annualized +0.39% vs +13.56% for VOO. Past performance does not guarantee future results.
Which is riskier, IBDW or VOO?
VOO has been the more volatile fund at 14.1% annualized versus 8.2% for IBDW. Worst drawdown: IBDW -23.9% vs VOO -34.3%.
Should I hold both IBDW and VOO?
IBDW and VOO have a monthly-return correlation of 0.69, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IBDW and VOO?
IBDW and VOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 936 unique securities.
Which pays a higher dividend, IBDW or VOO?
IBDW yields 4.78% while VOO yields 1.09%, so IBDW currently pays the higher dividend yield.
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