IBHH vs VYM

Quick Verdict

VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.

Lower Fees: VYMHigher Returns: VYMMore Diversified: VYM

Side-by-Side Comparison

MetricIBHHVYMWinner
Expense Ratio0.35%0.04%
AUM$456M$79.0B
Dividend Yield6.26%2.86%
Holdings222568
YTD Return-1.12%+15.80%
1Y Return+0.97%+26.12%
3Y Return (annualized)+6.75%+18.25%
5Y Return (annualized)-+12.51%
Volatility (annualized)7.6%14.6%
Max Drawdown-12.1%-58.8%
Fund FamilyiShares by BlackRock (US)Vanguard (US)
CategoryFixed IncomeEquity
InceptionMar 8, 2022Nov 10, 2006

IBHH vs VYM Performance

iShares iBonds 2028 Term High Yield and Income ETF (IBHH) 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 IBHH returned +0.97% while VYM returned +26.12%. Year to date, IBHH is down 1.12% versus a gain of 15.80% for VYM.

Over three years, IBHH compounded at +6.75% per year against +18.25% for VYM. Across the full 4-year window we track, VYM has the edge at +7.07% annualized vs +4.13%. 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 7.6% for IBHH. 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 -12.1% for IBHH 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 0.77. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

IBHH 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, IBHH currently yields 6.26% against 2.86% for VYM.

Holdings Overlap

0.0%overlap

IBHH and VYM share 0 holdings out of 759 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, IBHH or VYM?

IBHH 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, IBHH or VYM?

Over the past year IBHH returned +0.97% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (4 years), IBHH annualized +4.13% vs +7.07% for VYM. Past performance does not guarantee future results.

Which is riskier, IBHH or VYM?

VYM has been the more volatile fund at 14.6% annualized versus 7.6% for IBHH. Worst drawdown: IBHH -12.1% vs VYM -58.8%.

Should I hold both IBHH and VYM?

IBHH and VYM have a monthly-return correlation of 0.77, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between IBHH and VYM?

IBHH and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 759 unique securities.

Which pays a higher dividend, IBHH or VYM?

IBHH yields 6.26% while VYM yields 2.86%, so IBHH currently pays the higher dividend yield.

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