IBIJ vs VYM
iShares iBonds Oct 2033 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 616 holdings.
Side-by-Side Comparison
| Metric | IBIJ | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.10% | 0.04% | |
| AUM | $53M | $81.6B | |
| Dividend Yield | 5.51% | 2.24% | |
| Holdings | 4 | 616 | |
| YTD Return | +1.52% | +14.66% | |
| 1Y Return | +3.03% | +22.16% | |
| 3Y Return (annualized) | +5.39% | +18.72% | |
| 5Y Return (annualized) | - | +12.18% | |
| Volatility (annualized) | 5.4% | 14.6% | |
| Max Drawdown | -5.3% | -58.8% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Sep 19, 2023 | Nov 10, 2006 |
IBIJ vs VYM Performance
iShares iBonds Oct 2033 Term TIPS ETF (IBIJ) 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 IBIJ returned +3.03% while VYM returned +22.16%. Year to date, IBIJ is up 1.52% versus a gain of 14.66% for VYM.
Over three years, IBIJ compounded at +5.39% per year against +18.72% for VYM. Across the full 3-year window we track, VYM has the edge at +7.01% annualized vs +5.39%. 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 5.4% for IBIJ. 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 -5.3% for IBIJ 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 0.65. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IBIJ 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, IBIJ currently yields 5.51% against 2.24% for VYM.
Holdings Overlap
IBIJ and VYM share 0 holdings out of 606 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, IBIJ or VYM?
IBIJ 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, IBIJ or VYM?
Over the past year IBIJ returned +3.03% vs +22.16% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (3 years), IBIJ annualized +5.39% vs +7.01% for VYM. Past performance does not guarantee future results.
Which is riskier, IBIJ or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 5.4% for IBIJ. Worst drawdown: IBIJ -5.3% vs VYM -58.8%.
Should I hold both IBIJ and VYM?
IBIJ and VYM have a monthly-return correlation of 0.65, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IBIJ and VYM?
IBIJ and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 606 unique securities.
Which pays a higher dividend, IBIJ or VYM?
IBIJ yields 5.51% while VYM yields 2.24%, so IBIJ currently pays the higher dividend yield.
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