IBHG vs VOO
iShares iBonds 2027 Term High Yield and Income ETF vs Vanguard S&P 500 ETF
Which is better, IBHG or VOO?
High Yield Bond against Large Cap Blend.
VOO has a lower expense ratio. VOO led over 1Y, 3Y, 5Y and the full window. IBHG is less concentrated, with 23.4% of the fund in its ten largest positions against 36.4%.
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 | IBHG | VOO |
|---|---|---|
| Expense Ratio | 0.35% | 0.03%Best |
| AUM | $525M | $997.4B |
| Dividend Yield | 6.00% | 1.04% |
| Holdings | 91 | 509 |
| YTD Return | -2.00% | +12.50%Best |
| 1Y Return | -1.15% | +17.58%Best |
| 3Y Return (annualized) | +5.51% | +21.27%Best |
| 5Y Return (annualized) | +2.66% | +12.95%Best |
| Volatility (annualized) | 6.7%Best | 15.6% |
| Max Drawdown | -13.8%Best | -24.5% |
| $10,000 over 5 years | $11,403 | $18,384Best |
| Top 10 Weight | 23.4%Best | 36.4% |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) |
| Category | Fixed Income | Equity |
| Style | High Yield Bond | Large Cap Blend |
| Inception | Jul 7, 2021 | Sep 7, 2010 |
Volatility and max drawdown are measured over the window both funds cover: Jul 9, 2021 to Sep 11, 2026 (5.2 years).
IBHG vs VOO 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 5.2 years both funds cover.
IBHG vs VOO Performance
iShares iBonds 2027 Term High Yield and Income ETF (IBHG) is an ETF from iShares by BlackRock (US) and Vanguard S&P 500 ETF (VOO) is an ETF from Vanguard (US). Over the past year IBHG returned -1.15% while VOO returned +17.58%. Year to date, IBHG is down 2.00% versus a gain of 12.50% for VOO.
Over three years, IBHG compounded at +5.51% per year against +21.27% for VOO; over five years the annualized figures are +2.66% and +12.95% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VOO has been the more volatile fund, with annualized monthly volatility of 15.6% compared with 6.7% 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 -24.5% for VOO. Drawdown depth is what each fund did in the worst stretch of the window measured above.
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 6.00% against 1.04% for VOO.
Holdings Overlap
0.1% of VOO's money is in holdings IBHG also owns.
We cannot see either book well enough to say how much of this pair is duplicated.
The two holdings books were reported 62 days apart, IBHG as of Aug 31, 2026 and VOO as of Jun 30, 2026, so some of the difference between them is the time between the two reports rather than the funds.
2 positions in common, counted across the 348 positions we hold weights for in IBHG and 505 in VOO, against full books of 91 and 509.
What only one of them owns
Our book lists 487 positions for VOO that do not appear in our book for IBHG (99.4% of the fund), and 314 for IBHG that do not appear in VOO (95.3%).
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 IBHG and VOO 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, IBHG or VOO?
IBHG has an expense ratio of 0.35% while VOO charges 0.03%. VOO is the cheaper option, by $32 a year on a $10,000 investment.
Which performed better, IBHG or VOO?
Over the past year IBHG returned -1.15% vs +17.58% for VOO, so VOO leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, IBHG or VOO?
VOO has been the more volatile fund at 15.6% annualized versus 6.7% for IBHG. Worst drawdown: IBHG -13.8% vs VOO -24.5%.
Should I hold both IBHG and VOO?
IBHG and VOO have a monthly-return correlation of 0.78, 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, IBHG or VOO?
IBHG yields 6.00% while VOO yields 1.04%, so IBHG currently pays the higher dividend yield.
Is VOO better than IBHG?
VOO has a lower expense ratio. VOO led over 1Y, 3Y, 5Y and the full window. IBHG is less concentrated, with 23.4% of the fund in its ten largest positions against 36.4%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.