IBDY vs VTI
iShares iBonds Dec 2033 Term Corporate ETF vs Vanguard Morningstar Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. VTI delivered stronger 1-year returns. VTI offers more diversification with 3,543 holdings.
Side-by-Side Comparison
| Metric | IBDY | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.10% | 0.03% | |
| AUM | $1.1B | $666.9B | |
| Dividend Yield | 4.95% | 1.07% | |
| Holdings | 398 | 3,543 | |
| YTD Return | -0.18% | +14.82% | |
| 1Y Return | +2.51% | +22.43% | |
| 3Y Return (annualized) | +6.18% | +21.93% | |
| 5Y Return (annualized) | - | +12.34% | |
| Volatility (annualized) | 6.7% | 15.4% | |
| Max Drawdown | -7.5% | -56.6% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jun 21, 2023 | May 24, 2001 |
IBDY vs VTI Performance
iShares iBonds Dec 2033 Term Corporate ETF (IBDY) is a ETF from iShares by BlackRock (US) and Vanguard Morningstar Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year IBDY returned +2.51% while VTI returned +22.43%. Year to date, IBDY is down 0.18% versus a gain of 14.82% for VTI.
Over three years, IBDY compounded at +6.18% per year against +21.93% for VTI. Across the full 3-year window we track, VTI has the edge at +8.16% annualized vs +5.33%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTI has been the more volatile fund, with annualized monthly volatility of 15.4% compared with 6.7% for IBDY. 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 -7.5% for IBDY and -56.6% for VTI. 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 0.62. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IBDY 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, IBDY currently yields 4.95% against 1.07% for VTI.
Holdings Overlap
IBDY and VTI share 1 holdings out of 3103 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in IBDY | Weight in VTI | Difference |
|---|---|---|---|
| AON | 0.23% | 0.09% | 0.14% |
Frequently Asked Questions
Which is cheaper, IBDY or VTI?
IBDY has an expense ratio of 0.10% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $7 per year of difference.
Which performed better, IBDY or VTI?
Over the past year IBDY returned +2.51% vs +22.43% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (3 years), IBDY annualized +5.33% vs +8.16% for VTI. Past performance does not guarantee future results.
Which is riskier, IBDY or VTI?
VTI has been the more volatile fund at 15.4% annualized versus 6.7% for IBDY. Worst drawdown: IBDY -7.5% vs VTI -56.6%.
Should I hold both IBDY and VTI?
IBDY and VTI have a monthly-return correlation of 0.62, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IBDY and VTI?
IBDY and VTI share 1 common holdings with a 0.1% weight overlap. Combined, they hold 3103 unique securities.
Which pays a higher dividend, IBDY or VTI?
IBDY yields 4.95% while VTI yields 1.07%, so IBDY currently pays the higher dividend yield.
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