IBHF vs VTI
iShares iBonds 2026 Term High Yield and Income 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 | IBHF | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.35% | 0.03% | |
| AUM | $780M | $666.9B | |
| Dividend Yield | 6.19% | 1.07% | |
| Holdings | 212 | 3,543 | |
| YTD Return | -2.41% | +12.65% | |
| 1Y Return | -0.83% | +21.39% | |
| 3Y Return (annualized) | +5.53% | +21.54% | |
| 5Y Return (annualized) | +3.18% | +12.11% | |
| Volatility (annualized) | 5.1% | 15.3% | |
| Max Drawdown | -11.2% | -56.6% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Nov 10, 2020 | May 24, 2001 |
IBHF vs VTI Performance
iShares iBonds 2026 Term High Yield and Income ETF (IBHF) 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 IBHF returned -0.83% while VTI returned +21.39%. Year to date, IBHF is down 2.41% versus a gain of 12.65% for VTI.
Over three years, IBHF compounded at +5.53% per year against +21.54% for VTI; over five years the annualized figures are +3.18% and +12.11% respectively. Across the full 6-year window we track, VTI has the edge at +8.07% annualized vs +3.75%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTI has been the more volatile fund, with annualized monthly volatility of 15.3% 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 -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 0.75. 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 6.19% against 1.07% for VTI.
Holdings Overlap
IBHF and VTI share 0 holdings out of 2896 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 VTI?
IBHF has an expense ratio of 0.35% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $32 per year of difference.
Which performed better, IBHF or VTI?
Over the past year IBHF returned -0.83% vs +21.39% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (6 years), IBHF annualized +3.75% vs +8.07% for VTI. Past performance does not guarantee future results.
Which is riskier, IBHF or VTI?
VTI has been the more volatile fund at 15.3% annualized versus 5.1% for IBHF. Worst drawdown: IBHF -11.2% vs VTI -56.6%.
Should I hold both IBHF and VTI?
IBHF and VTI have a monthly-return correlation of 0.75, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IBHF and VTI?
IBHF and VTI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2896 unique securities.
Which pays a higher dividend, IBHF or VTI?
IBHF yields 6.19% while VTI yields 1.07%, so IBHF currently pays the higher dividend yield.
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