IBHL vs VOO
iShares iBonds 2032 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 | IBHL | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.35% | 0.03% | |
| AUM | $28M | $997.4B | |
| Dividend Yield | 6.32% | 1.08% | |
| Holdings | 218 | 509 | |
| YTD Return | -1.60% | +12.25% | |
| 1Y Return | +1.32% | +20.92% | |
| 3Y Return (annualized) | - | +21.79% | |
| 5Y Return (annualized) | - | +13.05% | |
| Volatility (annualized) | 3.5% | 14.1% | |
| Max Drawdown | -3.7% | -34.3% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Mar 25, 2025 | Sep 7, 2010 |
IBHL vs VOO Performance
iShares iBonds 2032 Term High Yield and Income ETF (IBHL) 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 IBHL returned +1.32% while VOO returned +20.92%. Year to date, IBHL is down 1.60% versus a gain of 12.25% for VOO.
Risk: Volatility and Drawdowns
VOO has been the more volatile fund, with annualized monthly volatility of 14.1% compared with 3.5% for IBHL. 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 -3.7% for IBHL 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 0.72. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IBHL 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, IBHL currently yields 6.32% against 1.08% for VOO.
Holdings Overlap
IBHL and VOO share 0 holdings out of 680 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, IBHL or VOO?
IBHL 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, IBHL or VOO?
Over the past year IBHL returned +1.32% vs +20.92% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (1 years), IBHL annualized +4.34% vs +13.45% for VOO. Past performance does not guarantee future results.
Which is riskier, IBHL or VOO?
VOO has been the more volatile fund at 14.1% annualized versus 3.5% for IBHL. Worst drawdown: IBHL -3.7% vs VOO -34.3%.
Should I hold both IBHL and VOO?
IBHL and VOO have a monthly-return correlation of 0.72, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IBHL and VOO?
IBHL and VOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 680 unique securities.
Which pays a higher dividend, IBHL or VOO?
IBHL yields 6.32% while VOO yields 1.08%, so IBHL currently pays the higher dividend yield.
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