IBND vs VYM
State Street SPDR Bloomberg International Corporate Bond 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 | IBND | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.50% | 0.04% | |
| AUM | $454M | $79.0B | |
| Dividend Yield | 2.76% | 2.86% | |
| Holdings | 968 | 568 | |
| YTD Return | -1.61% | +16.16% | |
| 1Y Return | -0.76% | +26.05% | |
| 3Y Return (annualized) | +5.66% | +18.43% | |
| 5Y Return (annualized) | -1.21% | +12.21% | |
| Volatility (annualized) | 9.6% | 14.6% | |
| Max Drawdown | -35.6% | -58.8% | |
| Fund Family | SPDR State Street Global Advisors | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | May 19, 2010 | Nov 10, 2006 |
IBND vs VYM Performance
State Street SPDR Bloomberg International Corporate Bond ETF (IBND) is a ETF from SPDR State Street Global Advisors and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year IBND returned -0.76% while VYM returned +26.05%. Year to date, IBND is down 1.61% versus a gain of 16.16% for VYM.
Over three years, IBND compounded at +5.66% per year against +18.43% for VYM; over five years the annualized figures are -1.21% and +12.21% respectively. Across the full 16-year window we track, VYM has the edge at +7.09% annualized vs +0.67%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% 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 -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 0.53. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IBND charges 0.50% per year while VYM charges 0.04%. On a $10,000 position that is $50 vs $4 annually, a gap of $46 per year that compounds over a long holding period. On income, IBND currently yields 2.76% against 2.86% for VYM.
Holdings Overlap
IBND and VYM share 0 holdings out of 599 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 VYM?
IBND has an expense ratio of 0.50% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $46 per year of difference.
Which performed better, IBND or VYM?
Over the past year IBND returned -0.76% vs +26.05% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (16 years), IBND annualized +0.67% vs +7.09% for VYM. Past performance does not guarantee future results.
Which is riskier, IBND or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 9.6% for IBND. Worst drawdown: IBND -35.6% vs VYM -58.8%.
Should I hold both IBND and VYM?
IBND and VYM have a monthly-return correlation of 0.53, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IBND and VYM?
IBND and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 599 unique securities.
Which pays a higher dividend, IBND or VYM?
IBND yields 2.76% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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