IBGA vs VYM
iShares iBonds Dec 2044 Term Treasury 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 | IBGA | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.07% | 0.04% | |
| AUM | $103M | $79.0B | |
| Dividend Yield | 4.61% | 2.86% | |
| Holdings | 9 | 568 | |
| YTD Return | -2.21% | +16.78% | |
| 1Y Return | -0.44% | +24.43% | |
| 3Y Return (annualized) | - | +18.60% | |
| 5Y Return (annualized) | - | +12.30% | |
| Volatility (annualized) | 8.8% | 14.6% | |
| Max Drawdown | -11.1% | -58.8% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jun 11, 2024 | Nov 10, 2006 |
IBGA vs VYM Performance
iShares iBonds Dec 2044 Term Treasury ETF (IBGA) 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 IBGA returned -0.44% while VYM returned +24.43%. Year to date, IBGA is down 2.21% versus a gain of 16.78% for VYM.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 8.8% for IBGA. 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 -11.1% for IBGA 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 0.47. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IBGA charges 0.07% per year while VYM charges 0.04%. On a $10,000 position that is $7 vs $4 annually, a gap of $3 per year that compounds over a long holding period. On income, IBGA currently yields 4.61% against 2.86% for VYM.
Holdings Overlap
IBGA and VYM share 0 holdings out of 566 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, IBGA or VYM?
IBGA has an expense ratio of 0.07% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, IBGA or VYM?
Over the past year IBGA returned -0.44% vs +24.43% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (2 years), IBGA annualized +1.49% vs +7.11% for VYM. Past performance does not guarantee future results.
Which is riskier, IBGA or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 8.8% for IBGA. Worst drawdown: IBGA -11.1% vs VYM -58.8%.
Should I hold both IBGA and VYM?
IBGA and VYM have a monthly-return correlation of 0.47, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IBGA and VYM?
IBGA and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 566 unique securities.
Which pays a higher dividend, IBGA or VYM?
IBGA yields 4.61% while VYM yields 2.86%, so IBGA currently pays the higher dividend yield.
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