IBGB vs VYM
iShares iBonds Dec 2045 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 616 holdings.
Side-by-Side Comparison
| Metric | IBGB | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.07% | 0.04% | |
| AUM | $9M | $81.6B | |
| Dividend Yield | 4.78% | 2.24% | |
| Holdings | 9 | 616 | |
| YTD Return | -2.05% | +14.66% | |
| 1Y Return | +0.53% | +22.16% | |
| 3Y Return (annualized) | - | +18.72% | |
| 5Y Return (annualized) | - | +12.18% | |
| Volatility (annualized) | 7.5% | 14.6% | |
| Max Drawdown | -7.7% | -58.8% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Mar 25, 2025 | Nov 10, 2006 |
IBGB vs VYM Performance
iShares iBonds Dec 2045 Term Treasury ETF (IBGB) 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 IBGB returned +0.53% while VYM returned +22.16%. Year to date, IBGB is down 2.05% versus a gain of 14.66% for VYM.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% 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 -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 0.30. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IBGB 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, IBGB currently yields 4.78% against 2.24% for VYM.
Holdings Overlap
IBGB and VYM share 0 holdings out of 611 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 VYM?
IBGB 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, IBGB or VYM?
Over the past year IBGB returned +0.53% vs +22.16% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (1 years), IBGB annualized +1.24% vs +7.01% for VYM. Past performance does not guarantee future results.
Which is riskier, IBGB or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 7.5% for IBGB. Worst drawdown: IBGB -7.7% vs VYM -58.8%.
Should I hold both IBGB and VYM?
IBGB and VYM have a monthly-return correlation of 0.30, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IBGB and VYM?
IBGB and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 611 unique securities.
Which pays a higher dividend, IBGB or VYM?
IBGB yields 4.78% while VYM yields 2.24%, so IBGB currently pays the higher dividend yield.
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