IBHF vs VOO
iShares iBonds 2026 Term High Yield and Income ETF vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. VOO delivered stronger 1-year returns. VOO offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | IBHF | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.35% | 0.03% | |
| AUM | $815M | $979.0B | |
| Dividend Yield | 6.38% | 1.09% | |
| Holdings | 212 | 509 | |
| YTD Return | -2.47% | +13.72% | |
| 1Y Return | -0.74% | +21.63% | |
| 3Y Return (annualized) | +5.42% | +21.55% | |
| 5Y Return (annualized) | +3.16% | +13.26% | |
| Volatility (annualized) | 5.1% | 14.1% | |
| Max Drawdown | -11.2% | -34.3% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Nov 10, 2020 | Sep 7, 2010 |
IBHF vs VOO Performance
iShares iBonds 2026 Term High Yield and Income ETF (IBHF) is a ETF from iShares by BlackRock (US) and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year IBHF returned -0.74% while VOO returned +21.63%. Year to date, IBHF is down 2.47% versus a gain of 13.72% for VOO.
Over three years, IBHF compounded at +5.42% per year against +21.55% for VOO; over five years the annualized figures are +3.16% and +13.26% respectively. Across the full 6-year window we track, VOO has the edge at +13.56% annualized vs +3.75%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VOO has been the more volatile fund, with annualized monthly volatility of 14.1% compared with 5.1% for IBHF. 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 -11.2% for IBHF and -34.3% for VOO. 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 0.74. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IBHF charges 0.35% per year while VOO charges 0.03%. On a $10,000 position that is $35 vs $3 annually, a gap of $32 per year that compounds over a long holding period. On income, IBHF currently yields 6.38% against 1.09% for VOO.
Holdings Overlap
IBHF and VOO share 0 holdings out of 711 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, IBHF or VOO?
IBHF has an expense ratio of 0.35% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $32 per year of difference.
Which performed better, IBHF or VOO?
Over the past year IBHF returned -0.74% vs +21.63% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (6 years), IBHF annualized +3.75% vs +13.56% for VOO. Past performance does not guarantee future results.
Which is riskier, IBHF or VOO?
VOO has been the more volatile fund at 14.1% annualized versus 5.1% for IBHF. Worst drawdown: IBHF -11.2% vs VOO -34.3%.
Should I hold both IBHF and VOO?
IBHF and VOO have a monthly-return correlation of 0.74, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IBHF and VOO?
IBHF and VOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 711 unique securities.
Which pays a higher dividend, IBHF or VOO?
IBHF yields 6.38% while VOO yields 1.09%, so IBHF currently pays the higher dividend yield.
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