IBDW vs VTI
iShares iBonds Dec 2031 Term Corporate ETF vs Vanguard Morningstar Total Stock Market ETF
Which is better, IBDW or VTI?
VTI has been ahead.
VTI has a lower expense ratio. VTI led over 1Y, 3Y, 5Y and the full window.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | IBDW | VTI |
|---|---|---|
| Expense Ratio | 0.10% | 0.03%Best |
| AUM | $2.6B | $666.9B |
| Dividend Yield | 4.82% | 1.03% |
| Holdings | 624 | 3,543 |
| YTD Return | -1.12% | +12.30%Best |
| 1Y Return | -0.14% | +16.08%Best |
| 3Y Return (annualized) | +6.01% | +21.01%Best |
| 5Y Return (annualized) | -0.16% | +12.36%Best |
| Volatility (annualized) | 8.2%Best | 15.8% |
| Max Drawdown | -23.9%Best | -25.4% |
| $10,000 over 5 years | $9,920 | $17,908Best |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) |
| Category | Fixed Income | Equity |
| Style | - | Large Cap Blend |
| Inception | Jun 22, 2021 | May 24, 2001 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Jun 24, 2021 to Sep 18, 2026 (5.2 years).
IBDW vs VTI growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 5.2 years both funds cover.
IBDW vs VTI Performance
iShares iBonds Dec 2031 Term Corporate ETF (IBDW) is an ETF from iShares by BlackRock (US) and Vanguard Morningstar Total Stock Market ETF (VTI) is an ETF from Vanguard (US). Over the past year IBDW returned -0.14% while VTI returned +16.08%. Year to date, IBDW is down 1.12% versus a gain of 12.30% for VTI.
Over three years, IBDW compounded at +6.01% per year against +21.01% for VTI; over five years the annualized figures are -0.16% and +12.36% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTI has been the more volatile fund, with annualized monthly volatility of 15.8% 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 -25.4% for VTI. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.70. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IBDW 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, IBDW currently yields 4.82% against 1.03% for VTI.
Holdings Overlap
We hold position weights for 421 holdings in IBDW and 3,463 in VTI, totalling 65.9% and 98.1% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 421 positions we hold weights for in IBDW and 3,463 in VTI, against full books of 624 and 3,543.
You are not choosing between two funds in isolation.
Whichever of IBDW and VTI you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, IBDW or VTI?
IBDW has an expense ratio of 0.10% while VTI charges 0.03%. VTI is the cheaper option, by $7 a year on a $10,000 investment.
Which performed better, IBDW or VTI?
Over the past year IBDW returned -0.14% vs +16.08% for VTI, so VTI leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, IBDW or VTI?
VTI has been the more volatile fund at 15.8% annualized versus 8.2% for IBDW. Worst drawdown: IBDW -23.9% vs VTI -25.4%.
Should I hold both IBDW and VTI?
IBDW and VTI have a monthly-return correlation of 0.70, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, IBDW or VTI?
IBDW yields 4.82% while VTI yields 1.03%, so IBDW currently pays the higher dividend yield.
Is VTI better than IBDW?
VTI has a lower expense ratio. VTI led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.