IBDY vs VYM
iShares iBonds Dec 2033 Term Corporate ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | IBDY | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.10% | 0.04% | |
| AUM | $1.1B | $79.0B | |
| Dividend Yield | 4.87% | 2.86% | |
| Holdings | 381 | 568 | |
| YTD Return | -0.78% | +16.16% | |
| 1Y Return | +2.26% | +26.05% | |
| 3Y Return (annualized) | +5.85% | +18.43% | |
| 5Y Return (annualized) | - | +12.21% | |
| Volatility (annualized) | 6.7% | 14.6% | |
| Max Drawdown | -7.5% | -58.8% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jun 21, 2023 | Nov 10, 2006 |
IBDY vs VYM Performance
iShares iBonds Dec 2033 Term Corporate ETF (IBDY) 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 IBDY returned +2.26% while VYM returned +26.05%. Year to date, IBDY is down 0.78% versus a gain of 16.16% for VYM.
Over three years, IBDY compounded at +5.85% per year against +18.43% for VYM. Across the full 3-year window we track, VYM has the edge at +7.09% annualized vs +5.14%. 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 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 -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 0.69. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IBDY 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, IBDY currently yields 4.87% against 2.86% for VYM.
Holdings Overlap
IBDY and VYM share 0 holdings out of 875 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, IBDY or VYM?
IBDY 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, IBDY or VYM?
Over the past year IBDY returned +2.26% vs +26.05% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (3 years), IBDY annualized +5.14% vs +7.09% for VYM. Past performance does not guarantee future results.
Which is riskier, IBDY or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 6.7% for IBDY. Worst drawdown: IBDY -7.5% vs VYM -58.8%.
Should I hold both IBDY and VYM?
IBDY and VYM 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 IBDY and VYM?
IBDY and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 875 unique securities.
Which pays a higher dividend, IBDY or VYM?
IBDY yields 4.87% while VYM yields 2.86%, so IBDY currently pays the higher dividend yield.
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