IBII vs VOO
iShares iBonds Oct 2032 Term TIPS 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 | IBII | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.10% | 0.03% | |
| AUM | $49M | $979.0B | |
| Dividend Yield | 4.07% | 1.09% | |
| Holdings | 5 | 509 | |
| YTD Return | +1.25% | +14.48% | |
| 1Y Return | +2.20% | +22.02% | |
| 3Y Return (annualized) | +5.50% | +21.80% | |
| 5Y Return (annualized) | - | +13.36% | |
| Volatility (annualized) | 5.0% | 14.2% | |
| Max Drawdown | -4.7% | -34.3% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Sep 19, 2023 | Sep 7, 2010 |
IBII vs VOO Performance
iShares iBonds Oct 2032 Term TIPS ETF (IBII) 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 IBII returned +2.20% while VOO returned +22.02%. Year to date, IBII is up 1.25% versus a gain of 14.48% for VOO.
Over three years, IBII compounded at +5.50% per year against +21.80% for VOO. Across the full 3-year window we track, VOO has the edge at +13.61% annualized vs +5.50%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VOO has been the more volatile fund, with annualized monthly volatility of 14.2% compared with 5.0% for IBII. 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 -4.7% for IBII 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 0.44. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IBII charges 0.10% per year while VOO 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, IBII currently yields 4.07% against 1.09% for VOO.
Holdings Overlap
IBII and VOO share 0 holdings out of 509 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, IBII or VOO?
IBII has an expense ratio of 0.10% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $7 per year of difference.
Which performed better, IBII or VOO?
Over the past year IBII returned +2.20% vs +22.02% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (3 years), IBII annualized +5.50% vs +13.61% for VOO. Past performance does not guarantee future results.
Which is riskier, IBII or VOO?
VOO has been the more volatile fund at 14.2% annualized versus 5.0% for IBII. Worst drawdown: IBII -4.7% vs VOO -34.3%.
Should I hold both IBII and VOO?
IBII and VOO have a monthly-return correlation of 0.44, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IBII and VOO?
IBII and VOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 509 unique securities.
Which pays a higher dividend, IBII or VOO?
IBII yields 4.07% while VOO yields 1.09%, so IBII currently pays the higher dividend yield.
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