IBIE vs VTI
iShares iBonds Oct 2028 Term TIPS 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 | IBIE | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.10% | 0.03% | |
| AUM | $160M | $666.9B | |
| Dividend Yield | 4.96% | 1.07% | |
| Holdings | 8 | 3,543 | |
| YTD Return | +2.15% | +13.14% | |
| 1Y Return | +3.15% | +22.35% | |
| 3Y Return (annualized) | +5.32% | +21.83% | |
| 5Y Return (annualized) | - | +12.01% | |
| Volatility (annualized) | 2.5% | 15.3% | |
| Max Drawdown | -1.7% | -56.6% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Sep 13, 2023 | May 24, 2001 |
IBIE vs VTI Performance
iShares iBonds Oct 2028 Term TIPS ETF (IBIE) 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 IBIE returned +3.15% while VTI returned +22.35%. Year to date, IBIE is up 2.15% versus a gain of 13.14% for VTI.
Over three years, IBIE compounded at +5.32% per year against +21.83% for VTI. Across the full 3-year window we track, VTI has the edge at +8.09% annualized vs +5.32%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTI has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 2.5% for IBIE. 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 -1.7% for IBIE 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 0.25. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IBIE charges 0.10% per year while VTI charges 0.03%. On a $10,000 position that is $10 vs $3 annually, a gap of $7 per year that compounds over a long holding period. On income, IBIE currently yields 4.96% against 1.07% for VTI.
Holdings Overlap
IBIE and VTI share 0 holdings out of 2794 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, IBIE or VTI?
IBIE has an expense ratio of 0.10% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $7 per year of difference.
Which performed better, IBIE or VTI?
Over the past year IBIE returned +3.15% vs +22.35% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (3 years), IBIE annualized +5.32% vs +8.09% for VTI. Past performance does not guarantee future results.
Which is riskier, IBIE or VTI?
VTI has been the more volatile fund at 15.3% annualized versus 2.5% for IBIE. Worst drawdown: IBIE -1.7% vs VTI -56.6%.
Should I hold both IBIE and VTI?
IBIE and VTI have a monthly-return correlation of 0.25, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IBIE and VTI?
IBIE and VTI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2794 unique securities.
Which pays a higher dividend, IBIE or VTI?
IBIE yields 4.96% while VTI yields 1.07%, so IBIE currently pays the higher dividend yield.
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