IBID vs VYM
iShares iBonds Oct 2027 Term TIPS ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | IBID | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.10% | 0.04% | |
| AUM | $118M | $79.0B | |
| Dividend Yield | 3.68% | 2.86% | |
| Holdings | 7 | 568 | |
| YTD Return | +2.43% | +16.16% | |
| 1Y Return | +3.49% | +26.05% | |
| 3Y Return (annualized) | +5.33% | +18.43% | |
| 5Y Return (annualized) | - | +12.21% | |
| Volatility (annualized) | 1.8% | 14.6% | |
| Max Drawdown | -1.3% | -58.8% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Sep 13, 2023 | Nov 10, 2006 |
IBID vs VYM Performance
iShares iBonds Oct 2027 Term TIPS ETF (IBID) 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 IBID returned +3.49% while VYM returned +26.05%. Year to date, IBID is up 2.43% versus a gain of 16.16% for VYM.
Over three years, IBID compounded at +5.33% per year against +18.43% for VYM. Across the full 3-year window we track, VYM has the edge at +7.09% annualized vs +5.33%. 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 1.8% for IBID. 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 -1.3% for IBID 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 0.26. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IBID charges 0.10% per year while VYM charges 0.04%. On a $10,000 position that is $10 vs $4 annually, a gap of $6 per year that compounds over a long holding period. On income, IBID currently yields 3.68% against 2.86% for VYM.
Holdings Overlap
IBID and VYM share 0 holdings out of 564 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, IBID or VYM?
IBID has an expense ratio of 0.10% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $6 per year of difference.
Which performed better, IBID or VYM?
Over the past year IBID returned +3.49% vs +26.05% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (3 years), IBID annualized +5.33% vs +7.09% for VYM. Past performance does not guarantee future results.
Which is riskier, IBID or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 1.8% for IBID. Worst drawdown: IBID -1.3% vs VYM -58.8%.
Should I hold both IBID and VYM?
IBID and VYM have a monthly-return correlation of 0.26, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IBID and VYM?
IBID and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 564 unique securities.
Which pays a higher dividend, IBID or VYM?
IBID yields 3.68% while VYM yields 2.86%, so IBID 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.