IBHF vs VYM
iShares iBonds 2026 Term High Yield and Income ETF vs Vanguard High Dividend Yield ETF
Which is better, IBHF or VYM?
High Yield Bond against Large Cap Value.
VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window. VYM is less concentrated, with 26.1% of the fund in its ten largest positions against 52.9%.
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 | VYM |
|---|---|---|
| Expense Ratio | 0.35% | 0.04%Best |
| AUM | $754M | $81.6B |
| Dividend Yield | 6.01% | 2.22% |
| Holdings | 113 | 613 |
| YTD Return | -2.38% | +10.24%Best |
| 1Y Return | -2.00% | +14.89%Best |
| 3Y Return (annualized) | +5.42% | +18.00%Best |
| 5Y Return (annualized) | +2.98% | +11.42%Best |
| Volatility (annualized) | 5.0%Best | 13.3% |
| Max Drawdown | -11.2%Best | -15.8% |
| $10,000 over 5 years | $11,581 | $17,172Best |
| Top 10 Weight | 52.9% | 26.1%Best |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) |
| Category | Fixed Income | Equity |
| Style | High Yield Bond | Large Cap Value |
| Inception | Nov 10, 2020 | Nov 10, 2006 |
Volatility and max drawdown are measured over the window both funds cover: Nov 12, 2020 to Sep 25, 2026 (5.9 years).
IBHF vs VYM 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 VYM Performance
iShares iBonds 2026 Term High Yield and Income ETF (IBHF) is an ETF from iShares by BlackRock (US) and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year IBHF returned -2.00% while VYM returned +14.89%. Year to date, IBHF is down 2.38% versus a gain of 10.24% for VYM.
Over three years, IBHF compounded at +5.42% per year against +18.00% for VYM; over five years the annualized figures are +2.98% and +11.42% respectively. Across the full 6-year window we track, VYM has the edge at +13.86% annualized vs +3.69%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 13.3% 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 -15.8% for VYM. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.69. They move together some of the time, and apart the rest.
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 6.01% against 2.22% for VYM.
Holdings Overlap
We hold position weights for 92 holdings in IBHF and 557 in VYM, totalling 98.4% and 99.2% 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 92 positions we hold weights for in IBHF and 557 in VYM, against full books of 113 and 613.
What only one of them owns
Our book lists 527 positions for VYM that do not appear in our book for IBHF (97.1% of the fund), and 91 for IBHF that do not appear in VYM (98.4%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
You are not choosing between two funds in isolation.
Whichever of IBHF and VYM 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 VYM?
IBHF has an expense ratio of 0.35% while VYM charges 0.04%. VYM is the cheaper option, by $31 a year on a $10,000 investment.
Which performed better, IBHF or VYM?
Over the past year IBHF returned -2.00% vs +14.89% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (6 years), IBHF annualized +3.69% vs +13.86% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, IBHF or VYM?
VYM has been the more volatile fund at 13.3% annualized versus 5.0% for IBHF. Worst drawdown: IBHF -11.2% vs VYM -15.8%.
Should I hold both IBHF and VYM?
IBHF and VYM have a monthly-return correlation of 0.69, 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 VYM?
IBHF yields 6.01% while VYM yields 2.22%, so IBHF currently pays the higher dividend yield.
Is VYM better than IBHF?
VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window. VYM is less concentrated, with 26.1% of the fund in its ten largest positions against 52.9%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.