IBIH vs VYM
iShares iBonds Oct 2031 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 | IBIH | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.10% | 0.04% | |
| AUM | $65M | $79.0B | |
| Dividend Yield | 3.91% | 2.86% | |
| Holdings | 5 | 568 | |
| YTD Return | +1.35% | +16.78% | |
| 1Y Return | +2.17% | +24.43% | |
| 3Y Return (annualized) | +5.57% | +18.60% | |
| 5Y Return (annualized) | - | +12.30% | |
| Volatility (annualized) | 4.5% | 14.6% | |
| Max Drawdown | -3.9% | -58.8% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Sep 19, 2023 | Nov 10, 2006 |
IBIH vs VYM Performance
iShares iBonds Oct 2031 Term TIPS ETF (IBIH) 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 IBIH returned +2.17% while VYM returned +24.43%. Year to date, IBIH is up 1.35% versus a gain of 16.78% for VYM.
Over three years, IBIH compounded at +5.57% per year against +18.60% for VYM. Across the full 3-year window we track, VYM has the edge at +7.11% annualized vs +5.57%. 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 4.5% for IBIH. 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 -3.9% for IBIH 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 0.61. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IBIH 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, IBIH currently yields 3.91% against 2.86% for VYM.
Holdings Overlap
IBIH and VYM share 0 holdings out of 560 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, IBIH or VYM?
IBIH 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, IBIH or VYM?
Over the past year IBIH returned +2.17% vs +24.43% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (3 years), IBIH annualized +5.57% vs +7.11% for VYM. Past performance does not guarantee future results.
Which is riskier, IBIH or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 4.5% for IBIH. Worst drawdown: IBIH -3.9% vs VYM -58.8%.
Should I hold both IBIH and VYM?
IBIH and VYM have a monthly-return correlation of 0.61, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IBIH and VYM?
IBIH and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 560 unique securities.
Which pays a higher dividend, IBIH or VYM?
IBIH yields 3.91% while VYM yields 2.86%, so IBIH currently pays the higher dividend yield.
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