IBND vs VTI
State Street SPDR Bloomberg International Corporate Bond ETF vs Vanguard Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. VTI delivered stronger 1-year returns. VTI offers more diversification with 2783 holdings.
Side-by-Side Comparison
| Metric | IBND | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.50% | 0.03% | |
| AUM | $454M | $663.5B | |
| Dividend Yield | 2.76% | 1.07% | |
| Holdings | 968 | 3,543 | |
| YTD Return | -1.36% | +14.96% | |
| 1Y Return | -1.00% | +22.39% | |
| 3Y Return (annualized) | +5.74% | +21.51% | |
| 5Y Return (annualized) | -1.29% | +12.36% | |
| Volatility (annualized) | 9.6% | 15.4% | |
| Max Drawdown | -35.6% | -56.6% | |
| Fund Family | SPDR State Street Global Advisors | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | May 19, 2010 | May 24, 2001 |
IBND vs VTI Performance
State Street SPDR Bloomberg International Corporate Bond ETF (IBND) is a ETF from SPDR State Street Global Advisors and Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year IBND returned -1.00% while VTI returned +22.39%. Year to date, IBND is down 1.36% versus a gain of 14.96% for VTI.
Over three years, IBND compounded at +5.74% per year against +21.51% for VTI; over five years the annualized figures are -1.29% and +12.36% respectively. Across the full 16-year window we track, VTI has the edge at +8.16% annualized vs +0.69%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTI has been the more volatile fund, with annualized monthly volatility of 15.4% 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 -56.6% for VTI. 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 0.57. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IBND charges 0.50% per year while VTI 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 1.07% for VTI.
Holdings Overlap
IBND and VTI share 0 holdings out of 2824 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 VTI?
IBND has an expense ratio of 0.50% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $47 per year of difference.
Which performed better, IBND or VTI?
Over the past year IBND returned -1.00% vs +22.39% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (16 years), IBND annualized +0.69% vs +8.16% for VTI. Past performance does not guarantee future results.
Which is riskier, IBND or VTI?
VTI has been the more volatile fund at 15.4% annualized versus 9.6% for IBND. Worst drawdown: IBND -35.6% vs VTI -56.6%.
Should I hold both IBND and VTI?
IBND and VTI have a monthly-return correlation of 0.57, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IBND and VTI?
IBND and VTI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2824 unique securities.
Which pays a higher dividend, IBND or VTI?
IBND yields 2.76% while VTI yields 1.07%, so IBND currently pays the higher dividend yield.
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