IBIL vs VYM
iShares iBonds Oct 2035 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 | IBIL | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.10% | 0.04% | |
| AUM | $37M | $79.0B | |
| Dividend Yield | 4.45% | 2.86% | |
| Holdings | 3 | 568 | |
| YTD Return | +2.31% | +16.10% | |
| 1Y Return | +4.25% | +25.99% | |
| 3Y Return (annualized) | - | +18.29% | |
| 5Y Return (annualized) | - | +12.35% | |
| Volatility (annualized) | 3.4% | 14.6% | |
| Max Drawdown | -5.3% | -58.8% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Mar 25, 2025 | Nov 10, 2006 |
IBIL vs VYM Performance
iShares iBonds Oct 2035 Term TIPS ETF (IBIL) 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 IBIL returned +4.25% while VYM returned +25.99%. Year to date, IBIL is up 2.31% versus a gain of 16.10% for VYM.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 3.4% for IBIL. 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 IBIL 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 0.64. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IBIL 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, IBIL currently yields 4.45% against 2.86% for VYM.
Holdings Overlap
IBIL 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, IBIL or VYM?
IBIL 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, IBIL or VYM?
Over the past year IBIL returned +4.25% vs +25.99% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (1 years), IBIL annualized +6.24% vs +7.08% for VYM. Past performance does not guarantee future results.
Which is riskier, IBIL or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 3.4% for IBIL. Worst drawdown: IBIL -5.3% vs VYM -58.8%.
Should I hold both IBIL and VYM?
IBIL and VYM have a monthly-return correlation of 0.64, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IBIL and VYM?
IBIL and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 560 unique securities.
Which pays a higher dividend, IBIL or VYM?
IBIL yields 4.45% while VYM yields 2.86%, so IBIL currently pays the higher dividend yield.
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