IBIK vs VYM
iShares iBonds Oct 2034 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 | IBIK | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.10% | 0.04% | |
| AUM | $86M | $79.0B | |
| Dividend Yield | 3.74% | 2.86% | |
| Holdings | 3 | 568 | |
| YTD Return | +0.77% | +16.53% | |
| 1Y Return | +2.46% | +25.03% | |
| 3Y Return (annualized) | - | +18.54% | |
| 5Y Return (annualized) | - | +12.25% | |
| Volatility (annualized) | 4.7% | 14.6% | |
| Max Drawdown | -5.6% | -58.8% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | May 22, 2024 | Nov 10, 2006 |
IBIK vs VYM Performance
iShares iBonds Oct 2034 Term TIPS ETF (IBIK) 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 IBIK returned +2.46% while VYM returned +25.03%. Year to date, IBIK is up 0.77% versus a gain of 16.53% for VYM.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 4.7% for IBIK. 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 -5.6% for IBIK 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 0.55. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IBIK 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, IBIK currently yields 3.74% against 2.86% for VYM.
Holdings Overlap
IBIK 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, IBIK or VYM?
IBIK 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, IBIK or VYM?
Over the past year IBIK returned +2.46% vs +25.03% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (2 years), IBIK annualized +4.86% vs +7.10% for VYM. Past performance does not guarantee future results.
Which is riskier, IBIK or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 4.7% for IBIK. Worst drawdown: IBIK -5.6% vs VYM -58.8%.
Should I hold both IBIK and VYM?
IBIK and VYM have a monthly-return correlation of 0.55, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IBIK and VYM?
IBIK and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 560 unique securities.
Which pays a higher dividend, IBIK or VYM?
IBIK yields 3.74% while VYM yields 2.86%, so IBIK currently pays the higher dividend yield.
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