IBHG vs VTI
iShares iBonds 2027 Term High Yield and Income ETF vs Vanguard Morningstar Total Stock Market ETF
Which is better, IBHG or VTI?
High Yield Bond against Large Cap Blend.
VTI has a lower expense ratio. VTI led over 1Y, 3Y, 5Y and the full window. IBHG is less concentrated, with 25.2% of the fund in its ten largest positions against 34.6%.
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 | VTI |
|---|---|---|
| Expense Ratio | 0.35% | 0.03%Best |
| AUM | $531M | $689.2B |
| Dividend Yield | 5.91% | 1.06% |
| Holdings | 768 | 3,542 |
| YTD Return | -2.76% | +12.23%Best |
| 1Y Return | -2.52% | +12.74%Best |
| 3Y Return (annualized) | +5.00% | +21.44%Best |
| 5Y Return (annualized) | +2.48% | +10.83%Best |
| Volatility (annualized) | 6.6%Best | 15.7% |
| Max Drawdown | -13.8%Best | -25.4% |
| $10,000 over 5 years | $11,303 | $16,722Best |
| Top 10 Weight | 25.2%Best | 34.6% |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) |
| Category | Fixed Income | Equity |
| Style | High Yield Bond | Large Cap Blend |
| Inception | Jul 7, 2021 | May 24, 2001 |
Volatility and max drawdown are measured over the window both funds cover: Jul 9, 2021 to Nov 11, 2026 (5.3 years).
IBHG vs VTI 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 5.3 years both funds cover.
IBHG vs VTI Performance
iShares iBonds 2027 Term High Yield and Income ETF (IBHG) is an ETF from iShares by BlackRock (US) and Vanguard Morningstar Total Stock Market ETF (VTI) is an ETF from Vanguard (US). Over the past year IBHG returned -2.52% while VTI returned +12.74%. Year to date, IBHG is down 2.76% versus a gain of 12.23% for VTI.
Over three years, IBHG compounded at +5.00% per year against +21.44% for VTI; over five years the annualized figures are +2.48% and +10.83% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTI has been the more volatile fund, with annualized monthly volatility of 15.7% compared with 6.6% 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 -25.4% for VTI. 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 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, IBHG currently yields 5.91% against 1.06% for VTI.
Holdings Overlap
We hold position weights for 374 holdings in IBHG and 3,464 in VTI, totalling 97.5% and 97.2% 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 374 positions we hold weights for in IBHG and 3,464 in VTI, against full books of 768 and 3,542.
What only one of them owns
Our book lists 1,121 positions for VTI that do not appear in our book for IBHG (96.9% of the fund), and 354 for IBHG that do not appear in VTI (97.5%).
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 VTI 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 VTI?
IBHG has an expense ratio of 0.35% while VTI charges 0.03%. VTI is the cheaper option, by $32 a year on a $10,000 investment.
Which performed better, IBHG or VTI?
Over the past year IBHG returned -2.52% vs +12.74% for VTI, so VTI leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, IBHG or VTI?
VTI has been the more volatile fund at 15.7% annualized versus 6.6% for IBHG. Worst drawdown: IBHG -13.8% vs VTI -25.4%.
Should I hold both IBHG and VTI?
IBHG and VTI 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 VTI?
IBHG yields 5.91% while VTI yields 1.06%, so IBHG currently pays the higher dividend yield.
Is VTI better than IBHG?
VTI has a lower expense ratio. VTI led over 1Y, 3Y, 5Y and the full window. IBHG is less concentrated, with 25.2% of the fund in its ten largest positions against 34.6%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.