IBHG vs VOO
iShares iBonds 2027 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 509 holdings.
Side-by-Side Comparison
| Metric | IBHG | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.35% | 0.03% | |
| AUM | $517M | $997.4B | |
| Dividend Yield | 6.05% | 1.08% | |
| Holdings | 91 | 509 | |
| YTD Return | -1.41% | +12.68% | |
| 1Y Return | +0.09% | +21.87% | |
| 3Y Return (annualized) | +6.04% | +22.06% | |
| 5Y Return (annualized) | +2.95% | +12.95% | |
| Volatility (annualized) | 6.8% | 14.1% | |
| Max Drawdown | -13.8% | -34.3% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jul 7, 2021 | Sep 7, 2010 |
IBHG vs VOO Performance
iShares iBonds 2027 Term High Yield and Income ETF (IBHG) 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 IBHG returned +0.09% while VOO returned +21.87%. Year to date, IBHG is down 1.41% versus a gain of 12.68% for VOO.
Over three years, IBHG compounded at +6.04% per year against +22.06% for VOO; over five years the annualized figures are +2.95% and +12.95% respectively. Across the full 5-year window we track, VOO has the edge at +13.47% annualized vs +2.82%. 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 6.8% for IBHG. 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 -13.8% for IBHG 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 0.78. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IBHG 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, IBHG currently yields 6.05% against 1.08% for VOO.
Holdings Overlap
IBHG and VOO share 0 holdings out of 590 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, IBHG or VOO?
IBHG 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, IBHG or VOO?
Over the past year IBHG returned +0.09% vs +21.87% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (5 years), IBHG annualized +2.82% vs +13.47% for VOO. Past performance does not guarantee future results.
Which is riskier, IBHG or VOO?
VOO has been the more volatile fund at 14.1% annualized versus 6.8% for IBHG. Worst drawdown: IBHG -13.8% vs VOO -34.3%.
Should I hold both IBHG and VOO?
IBHG and VOO have a monthly-return correlation of 0.78, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IBHG and VOO?
IBHG and VOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 590 unique securities.
Which pays a higher dividend, IBHG or VOO?
IBHG yields 6.05% while VOO yields 1.08%, so IBHG currently pays the higher dividend yield.
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