IBMS vs VYM

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

MetricIBMSVYMWinner
Expense Ratio0.18%0.04%
AUM$314M$79.0B
Dividend Yield2.51%2.86%
Holdings1,644568
YTD Return-1.15%+15.80%
1Y Return+0.50%+26.12%
3Y Return (annualized)-+18.25%
5Y Return (annualized)-+12.51%
Volatility (annualized)3.3%14.6%
Max Drawdown-3.0%-58.8%
Fund FamilyiShares by BlackRock (US)Vanguard (US)
CategoryFixed IncomeEquity
InceptionMay 22, 2024Nov 10, 2006

IBMS vs VYM Performance

iShares iBonds Dec 2030 Term Muni Bond ETF (IBMS) 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 IBMS returned +0.50% while VYM returned +26.12%. Year to date, IBMS is down 1.15% versus a gain of 15.80% for VYM.

Risk: Volatility and Drawdowns

VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 3.3% for IBMS. 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 -3.0% for IBMS 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 0.70. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

IBMS charges 0.18% per year while VYM charges 0.04%. On a $10,000 position that is $18 vs $4 annually, a gap of $14 per year that compounds over a long holding period. On income, IBMS currently yields 2.51% against 2.86% for VYM.

Holdings Overlap

0.0%overlap

IBMS and VYM share 0 holdings out of 807 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, IBMS or VYM?

IBMS has an expense ratio of 0.18% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $14 per year of difference.

Which performed better, IBMS or VYM?

Over the past year IBMS returned +0.50% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (2 years), IBMS annualized +3.15% vs +7.07% for VYM. Past performance does not guarantee future results.

Which is riskier, IBMS or VYM?

VYM has been the more volatile fund at 14.6% annualized versus 3.3% for IBMS. Worst drawdown: IBMS -3.0% vs VYM -58.8%.

Should I hold both IBMS and VYM?

IBMS and VYM have a monthly-return correlation of 0.70, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between IBMS and VYM?

IBMS and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 807 unique securities.

Which pays a higher dividend, IBMS or VYM?

IBMS yields 2.51% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.

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