Quick Verdict

VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.

Lower Fees: VYMHigher Returns: VYMMore Diversified: VYM

Side-by-Side Comparison

MetricIBITVYMWinner
Expense Ratio0.25%0.04%
AUM$47.7B$79.0B
Dividend Yield0.00%2.86%
Holdings2568
YTD Return-27.76%+15.80%
1Y Return-44.93%+26.12%
3Y Return (annualized)-+18.25%
5Y Return (annualized)-+12.51%
Volatility (annualized)52.8%14.6%
Max Drawdown-53.3%-58.8%
Fund FamilyiShares by BlackRock (US)Vanguard (US)
CategoryAlternativeEquity
InceptionJan 5, 2024Nov 10, 2006

IBIT vs VYM Performance

iShares Bitcoin Trust ETF (IBIT) 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 IBIT returned -44.93% while VYM returned +26.12%. Year to date, IBIT is down 27.76% versus a gain of 15.80% for VYM.

Risk: Volatility and Drawdowns

IBIT has been the more volatile fund, with annualized monthly volatility of 52.8% compared with 14.6% for VYM. 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 -53.3% for IBIT 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 0.29. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

IBIT charges 0.25% per year while VYM charges 0.04%. On a $10,000 position that is $25 vs $4 annually, a gap of $21 per year that compounds over a long holding period. On income, IBIT currently yields 0.00% against 2.86% for VYM.

Frequently Asked Questions

Which is cheaper, IBIT or VYM?

IBIT has an expense ratio of 0.25% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $21 per year of difference.

Which performed better, IBIT or VYM?

Over the past year IBIT returned -44.93% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (3 years), IBIT annualized +13.41% vs +7.07% for VYM. Past performance does not guarantee future results.

Which is riskier, IBIT or VYM?

IBIT has been the more volatile fund at 52.8% annualized versus 14.6% for VYM. Worst drawdown: IBIT -53.3% vs VYM -58.8%.

Should I hold both IBIT and VYM?

IBIT and VYM have a monthly-return correlation of 0.29, so combining them can provide real diversification depending on your allocation goals.

Which pays a higher dividend, IBIT or VYM?

IBIT yields 0.00% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.

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