IBND vs VOO
State Street SPDR Bloomberg International Corporate Bond ETF vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. VOO delivered stronger 1-year returns. VOO offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | IBND | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.50% | 0.03% | |
| AUM | $454M | $979.0B | |
| Dividend Yield | 2.76% | 1.09% | |
| Holdings | 968 | 509 | |
| YTD Return | -1.27% | +13.44% | |
| 1Y Return | -0.01% | +22.62% | |
| 3Y Return (annualized) | +5.79% | +21.47% | |
| 5Y Return (annualized) | -1.18% | +13.27% | |
| Volatility (annualized) | 9.6% | 14.1% | |
| Max Drawdown | -35.6% | -34.3% | |
| Fund Family | SPDR State Street Global Advisors | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | May 19, 2010 | Sep 7, 2010 |
IBND vs VOO Performance
State Street SPDR Bloomberg International Corporate Bond ETF (IBND) is a ETF from SPDR State Street Global Advisors and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year IBND returned -0.01% while VOO returned +22.62%. Year to date, IBND is down 1.27% versus a gain of 13.44% for VOO.
Over three years, IBND compounded at +5.79% per year against +21.47% for VOO; over five years the annualized figures are -1.18% and +13.27% respectively. Across the full 16-year window we track, VOO has the edge at +13.55% annualized vs +0.69%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VOO has been the more volatile fund, with annualized monthly volatility of 14.1% compared with 9.6% for IBND. 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 -35.6% for IBND and -34.3% for VOO. 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 0.56. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IBND charges 0.50% per year while VOO charges 0.03%. On a $10,000 position that is $50 vs $3 annually, a gap of $47 per year that compounds over a long holding period. On income, IBND currently yields 2.76% against 1.09% for VOO.
Holdings Overlap
IBND and VOO share 0 holdings out of 546 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, IBND or VOO?
IBND has an expense ratio of 0.50% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $47 per year of difference.
Which performed better, IBND or VOO?
Over the past year IBND returned -0.01% vs +22.62% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (16 years), IBND annualized +0.69% vs +13.55% for VOO. Past performance does not guarantee future results.
Which is riskier, IBND or VOO?
VOO has been the more volatile fund at 14.1% annualized versus 9.6% for IBND. Worst drawdown: IBND -35.6% vs VOO -34.3%.
Should I hold both IBND and VOO?
IBND and VOO have a monthly-return correlation of 0.56, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IBND and VOO?
IBND and VOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 546 unique securities.
Which pays a higher dividend, IBND or VOO?
IBND yields 2.76% while VOO yields 1.09%, so IBND currently pays the higher dividend yield.
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