IBHF vs VTI
iShares iBonds 2026 Term High Yield and Income ETF vs Vanguard Morningstar Total Stock Market ETF
Which is better, IBHF or VTI?
High Yield Bond against Large Cap Blend.
VTI has a lower expense ratio. VTI led over 1Y, 3Y, 5Y and the full window. VTI is less concentrated, with 33.3% of the fund in its ten largest positions against 62.4%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | IBHF | VTI |
|---|---|---|
| Expense Ratio | 0.35% | 0.03%Best |
| AUM | $708M | $690.1B |
| Dividend Yield | 6.01% | 1.03% |
| Holdings | 82 | 3,524 |
| YTD Return | -2.56% | +13.35%Best |
| 1Y Return | -2.24% | +15.92%Best |
| 3Y Return (annualized) | +5.71% | +23.41%Best |
| 5Y Return (annualized) | +3.01% | +12.83%Best |
| Volatility (annualized) | 5.0%Best | 15.1% |
| Max Drawdown | -11.2%Best | -25.4% |
| $10,000 over 5 years | $11,598 | $18,286Best |
| Top 10 Weight | 62.4% | 33.3%Best |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) |
| Category | Fixed Income | Equity |
| Style | High Yield Bond | Large Cap Blend |
| Inception | Nov 10, 2020 | May 24, 2001 |
Volatility and max drawdown are measured over the window both funds cover: Nov 12, 2020 to Oct 2, 2026 (5.9 years).
IBHF vs VTI growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 5.9 years both funds cover.
IBHF vs VTI Performance
iShares iBonds 2026 Term High Yield and Income ETF (IBHF) is an ETF from iShares by BlackRock (US) and Vanguard Morningstar Total Stock Market ETF (VTI) is an ETF from Vanguard (US). Over the past year IBHF returned -2.24% while VTI returned +15.92%. Year to date, IBHF is down 2.56% versus a gain of 13.35% for VTI.
Over three years, IBHF compounded at +5.71% per year against +23.41% for VTI; over five years the annualized figures are +3.01% and +12.83% respectively. Across the full 6-year window we track, VTI has the edge at +14.88% annualized vs +3.65%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTI has been the more volatile fund, with annualized monthly volatility of 15.1% compared with 5.0% 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 -25.4% for VTI. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.75. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IBHF charges 0.35% per year while VTI 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 6.01% against 1.03% for VTI.
Holdings Overlap
We hold position weights for 78 holdings in IBHF and 3,463 in VTI, totalling 98.0% and 98.1% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 78 positions we hold weights for in IBHF and 3,463 in VTI, against full books of 82 and 3,524.
What only one of them owns
Measured across the 78 and 3,463 positions we hold weights for.
VTI holds 1,150 positions IBHF does not, 97.5% of the fund.
Largest: NVDA 6.40%, AAPL 6.29%, MSFT 4.79%, AMZN 3.65%, GOOGL 2.90%
You are not choosing between two funds in isolation.
Whichever of IBHF and VTI you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, IBHF or VTI?
IBHF has an expense ratio of 0.35% while VTI charges 0.03%. VTI is the cheaper option, by $32 a year on a $10,000 investment.
Which performed better, IBHF or VTI?
Over the past year IBHF returned -2.24% vs +15.92% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (6 years), IBHF annualized +3.65% vs +14.88% for VTI. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, IBHF or VTI?
VTI has been the more volatile fund at 15.1% annualized versus 5.0% for IBHF. Worst drawdown: IBHF -11.2% vs VTI -25.4%.
Should I hold both IBHF and VTI?
IBHF and VTI have a monthly-return correlation of 0.75, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, IBHF or VTI?
IBHF yields 6.01% while VTI yields 1.03%, so IBHF currently pays the higher dividend yield.
Is VTI better than IBHF?
VTI has a lower expense ratio. VTI led over 1Y, 3Y, 5Y and the full window. VTI is less concentrated, with 33.3% of the fund in its ten largest positions against 62.4%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.