IBHL vs VTI
iShares iBonds 2032 Term High Yield and Income ETF vs Vanguard Morningstar Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. VTI delivered stronger 1-year returns. VTI offers more diversification with 3,543 holdings.
Side-by-Side Comparison
| Metric | IBHL | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.35% | 0.03% | |
| AUM | $28M | $666.9B | |
| Dividend Yield | 6.32% | 1.07% | |
| Holdings | 218 | 3,543 | |
| YTD Return | -1.40% | +13.14% | |
| 1Y Return | +1.72% | +22.35% | |
| 3Y Return (annualized) | - | +21.83% | |
| 5Y Return (annualized) | - | +12.01% | |
| Volatility (annualized) | 3.5% | 15.3% | |
| Max Drawdown | -3.7% | -56.6% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Mar 25, 2025 | May 24, 2001 |
IBHL vs VTI Performance
iShares iBonds 2032 Term High Yield and Income ETF (IBHL) is a ETF from iShares by BlackRock (US) and Vanguard Morningstar Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year IBHL returned +1.72% while VTI returned +22.35%. Year to date, IBHL is down 1.40% versus a gain of 13.14% for VTI.
Risk: Volatility and Drawdowns
VTI has been the more volatile fund, with annualized monthly volatility of 15.3% 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 -56.6% for VTI. 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 0.73. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IBHL 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, IBHL currently yields 6.32% against 1.07% for VTI.
Holdings Overlap
IBHL and VTI share 0 holdings out of 2962 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 VTI?
IBHL has an expense ratio of 0.35% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $32 per year of difference.
Which performed better, IBHL or VTI?
Over the past year IBHL returned +1.72% vs +22.35% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (1 years), IBHL annualized +4.48% vs +8.09% for VTI. Past performance does not guarantee future results.
Which is riskier, IBHL or VTI?
VTI has been the more volatile fund at 15.3% annualized versus 3.5% for IBHL. Worst drawdown: IBHL -3.7% vs VTI -56.6%.
Should I hold both IBHL and VTI?
IBHL and VTI have a monthly-return correlation of 0.73, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IBHL and VTI?
IBHL and VTI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2962 unique securities.
Which pays a higher dividend, IBHL or VTI?
IBHL yields 6.32% while VTI yields 1.07%, so IBHL currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.