IBGB vs VTI
iShares iBonds Dec 2045 Term Treasury 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 | IBGB | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.07% | 0.03% | |
| AUM | $9M | $666.9B | |
| Dividend Yield | 4.78% | 1.07% | |
| Holdings | 9 | 3,543 | |
| YTD Return | -2.50% | +14.82% | |
| 1Y Return | -0.04% | +22.43% | |
| 3Y Return (annualized) | - | +21.93% | |
| 5Y Return (annualized) | - | +12.34% | |
| Volatility (annualized) | 7.5% | 15.4% | |
| Max Drawdown | -7.7% | -56.6% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Mar 25, 2025 | May 24, 2001 |
IBGB vs VTI Performance
iShares iBonds Dec 2045 Term Treasury ETF (IBGB) 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 IBGB returned -0.04% while VTI returned +22.43%. Year to date, IBGB is down 2.50% versus a gain of 14.82% for VTI.
Risk: Volatility and Drawdowns
VTI has been the more volatile fund, with annualized monthly volatility of 15.4% compared with 7.5% for IBGB. 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 -7.7% for IBGB 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 0.21. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IBGB charges 0.07% per year while VTI charges 0.03%. On a $10,000 position that is $7 vs $3 annually, a gap of $4 per year that compounds over a long holding period. On income, IBGB currently yields 4.78% against 1.07% for VTI.
Holdings Overlap
IBGB and VTI share 0 holdings out of 2795 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, IBGB or VTI?
IBGB has an expense ratio of 0.07% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $4 per year of difference.
Which performed better, IBGB or VTI?
Over the past year IBGB returned -0.04% vs +22.43% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (1 years), IBGB annualized +0.92% vs +8.16% for VTI. Past performance does not guarantee future results.
Which is riskier, IBGB or VTI?
VTI has been the more volatile fund at 15.4% annualized versus 7.5% for IBGB. Worst drawdown: IBGB -7.7% vs VTI -56.6%.
Should I hold both IBGB and VTI?
IBGB and VTI have a monthly-return correlation of 0.21, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IBGB and VTI?
IBGB and VTI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2795 unique securities.
Which pays a higher dividend, IBGB or VTI?
IBGB yields 4.78% while VTI yields 1.07%, so IBGB currently pays the higher dividend yield.
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