IBHF vs VYM
iShares iBonds 2026 Term High Yield and Income 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 558 holdings.
Side-by-Side Comparison
| Metric | IBHF | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.35% | 0.04% | |
| AUM | $815M | $79.0B | |
| Dividend Yield | 6.38% | 2.86% | |
| Holdings | 212 | 568 | |
| YTD Return | -2.47% | +16.53% | |
| 1Y Return | -0.74% | +25.03% | |
| 3Y Return (annualized) | +5.42% | +18.54% | |
| 5Y Return (annualized) | +3.16% | +12.25% | |
| Volatility (annualized) | 5.1% | 14.6% | |
| Max Drawdown | -11.2% | -58.8% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Nov 10, 2020 | Nov 10, 2006 |
IBHF vs VYM Performance
iShares iBonds 2026 Term High Yield and Income ETF (IBHF) 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 IBHF returned -0.74% while VYM returned +25.03%. Year to date, IBHF is down 2.47% versus a gain of 16.53% for VYM.
Over three years, IBHF compounded at +5.42% per year against +18.54% for VYM; over five years the annualized figures are +3.16% and +12.25% respectively. Across the full 6-year window we track, VYM has the edge at +7.10% annualized vs +3.75%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% 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 -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 0.69. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IBHF charges 0.35% per year while VYM charges 0.04%. On a $10,000 position that is $35 vs $4 annually, a gap of $31 per year that compounds over a long holding period. On income, IBHF currently yields 6.38% against 2.86% for VYM.
Holdings Overlap
IBHF and VYM share 0 holdings out of 764 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 VYM?
IBHF has an expense ratio of 0.35% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $31 per year of difference.
Which performed better, IBHF or VYM?
Over the past year IBHF returned -0.74% vs +25.03% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (6 years), IBHF annualized +3.75% vs +7.10% for VYM. Past performance does not guarantee future results.
Which is riskier, IBHF or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 5.1% for IBHF. Worst drawdown: IBHF -11.2% vs VYM -58.8%.
Should I hold both IBHF and VYM?
IBHF and VYM have a monthly-return correlation of 0.69, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IBHF and VYM?
IBHF and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 764 unique securities.
Which pays a higher dividend, IBHF or VYM?
IBHF yields 6.38% while VYM yields 2.86%, so IBHF currently pays the higher dividend yield.
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