IBTI vs VYM
iShares iBonds Dec 2028 Term Treasury 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 613 holdings.
Side-by-Side Comparison
| Metric | IBTI | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.07% | 0.04% | |
| AUM | $2.0B | $81.6B | |
| Dividend Yield | 3.79% | 2.24% | |
| Holdings | 47 | 613 | |
| YTD Return | +0.90% | +15.29% | |
| 1Y Return | +2.33% | +22.23% | |
| 3Y Return (annualized) | +4.43% | +18.81% | |
| 5Y Return (annualized) | +0.03% | +12.14% | |
| Volatility (annualized) | 4.8% | 14.5% | |
| Max Drawdown | -18.7% | -58.8% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Feb 25, 2020 | Nov 10, 2006 |
IBTI vs VYM Performance
iShares iBonds Dec 2028 Term Treasury ETF (IBTI) 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 IBTI returned +2.33% while VYM returned +22.23%. Year to date, IBTI is up 0.90% versus a gain of 15.29% for VYM.
Over three years, IBTI compounded at +4.43% per year against +18.81% for VYM; over five years the annualized figures are +0.03% and +12.14% respectively. Across the full 7-year window we track, VYM has the edge at +7.02% annualized vs +0.21%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.5% compared with 4.8% for IBTI. 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 -18.7% for IBTI 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 0.16. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IBTI charges 0.07% per year while VYM charges 0.04%. On a $10,000 position that is $7 vs $4 annually, a gap of $3 per year that compounds over a long holding period. On income, IBTI currently yields 3.79% against 2.24% for VYM.
Holdings Overlap
IBTI and VYM share 0 holdings out of 639 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, IBTI or VYM?
IBTI has an expense ratio of 0.07% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, IBTI or VYM?
Over the past year IBTI returned +2.33% vs +22.23% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (7 years), IBTI annualized +0.21% vs +7.02% for VYM. Past performance does not guarantee future results.
Which is riskier, IBTI or VYM?
VYM has been the more volatile fund at 14.5% annualized versus 4.8% for IBTI. Worst drawdown: IBTI -18.7% vs VYM -58.8%.
Should I hold both IBTI and VYM?
IBTI and VYM have a monthly-return correlation of 0.16, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IBTI and VYM?
IBTI and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 639 unique securities.
Which pays a higher dividend, IBTI or VYM?
IBTI yields 3.79% while VYM yields 2.24%, so IBTI currently pays the higher dividend yield.
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