IBII vs VTI
iShares iBonds Oct 2032 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 | IBII | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.10% | 0.03% | |
| AUM | $54M | $666.9B | |
| Dividend Yield | 5.21% | 1.07% | |
| Holdings | 5 | 3,543 | |
| YTD Return | +1.11% | +14.82% | |
| 1Y Return | +2.22% | +22.43% | |
| 3Y Return (annualized) | +5.44% | +21.93% | |
| 5Y Return (annualized) | - | +12.34% | |
| Volatility (annualized) | 5.0% | 15.4% | |
| Max Drawdown | -4.7% | -56.6% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Sep 19, 2023 | May 24, 2001 |
IBII vs VTI Performance
iShares iBonds Oct 2032 Term TIPS ETF (IBII) 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 IBII returned +2.22% while VTI returned +22.43%. Year to date, IBII is up 1.11% versus a gain of 14.82% for VTI.
Over three years, IBII compounded at +5.44% per year against +21.93% for VTI. Across the full 3-year window we track, VTI has the edge at +8.16% annualized vs +5.44%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTI has been the more volatile fund, with annualized monthly volatility of 15.4% 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 -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 0.45. They move independently enough that combining them can meaningfully diversify a portfolio.
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 5.21% against 1.07% for VTI.
Holdings Overlap
IBII and VTI share 0 holdings out of 2791 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 VTI?
IBII 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, IBII or VTI?
Over the past year IBII returned +2.22% vs +22.43% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (3 years), IBII annualized +5.44% vs +8.16% for VTI. Past performance does not guarantee future results.
Which is riskier, IBII or VTI?
VTI has been the more volatile fund at 15.4% annualized versus 5.0% for IBII. Worst drawdown: IBII -4.7% vs VTI -56.6%.
Should I hold both IBII and VTI?
IBII and VTI have a monthly-return correlation of 0.45, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IBII and VTI?
IBII and VTI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2791 unique securities.
Which pays a higher dividend, IBII or VTI?
IBII yields 5.21% while VTI yields 1.07%, so IBII currently pays the higher dividend yield.
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