IBII vs VTI
iShares iBonds Oct 2032 Term TIPS ETF vs Vanguard Morningstar Total Stock Market ETF
Which is better, IBII or VTI?
VTI has been ahead.
VTI has a lower expense ratio. VTI led over 1Y, 3Y and the full window.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | IBII | VTI |
|---|---|---|
| Expense Ratio | 0.10% | 0.03%Best |
| AUM | $54M | $666.9B |
| Dividend Yield | 5.22% | 1.03% |
| Holdings | 5 | 3,543 |
| YTD Return | -0.34% | +12.57%Best |
| 1Y Return | -1.03% | +17.22%Best |
| 3Y Return (annualized) | +4.79% | +20.87%Best |
| 5Y Return (annualized) | - | +11.86% |
| Volatility (annualized) | 5.0%Best | 12.8% |
| Max Drawdown | -4.7%Best | -19.3% |
| $10,000 over 3 years | $11,507 | $18,315Best |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) |
| Category | Fixed Income | Equity |
| Style | - | Large Cap Blend |
| Inception | Sep 19, 2023 | May 24, 2001 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown, and the $10,000 over 3 years row, are measured over the window both funds cover: Sep 21, 2023 to Sep 11, 2026 (3 years).
IBII vs VTI growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 3 years both funds cover.
IBII vs VTI Performance
iShares iBonds Oct 2032 Term TIPS ETF (IBII) is an ETF from iShares by BlackRock (US) and Vanguard Morningstar Total Stock Market ETF (VTI) is an ETF from Vanguard (US). Over the past year IBII returned -1.03% while VTI returned +17.22%. Year to date, IBII is down 0.34% versus a gain of 12.57% for VTI.
Over three years, IBII compounded at +4.79% per year against +20.87% for VTI.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTI has been the more volatile fund, with annualized monthly volatility of 12.8% 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 -19.3% for VTI. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.46. They move together some of the time, and apart the rest.
Fees and Cost Over Time
IBII 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, IBII currently yields 5.22% against 1.03% for VTI.
Holdings Overlap
We hold position weights for 4 holdings in IBII and 2,787 in VTI, totalling 100.0% and 90.6% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
The two holdings books were reported 62 days apart, IBII as of Aug 31, 2026 and VTI as of Jun 30, 2026, so some of the difference between them is the time between the two reports rather than the funds.
0 positions in common, counted across the 4 positions we hold weights for in IBII and 2,787 in VTI, against full books of 5 and 3,543.
You are not choosing between two funds in isolation.
Whichever of IBII and VTI you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, IBII or VTI?
IBII has an expense ratio of 0.10% while VTI charges 0.03%. VTI is the cheaper option, by $7 a year on a $10,000 investment.
Which performed better, IBII or VTI?
Over the past year IBII returned -1.03% vs +17.22% for VTI, so VTI leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, IBII or VTI?
VTI has been the more volatile fund at 12.8% annualized versus 5.0% for IBII. Worst drawdown: IBII -4.7% vs VTI -19.3%.
Should I hold both IBII and VTI?
IBII and VTI have a monthly-return correlation of 0.46, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, IBII or VTI?
IBII yields 5.22% while VTI yields 1.03%, so IBII currently pays the higher dividend yield.
Is VTI better than IBII?
VTI has a lower expense ratio. VTI led over 1Y, 3Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.