IBTJ vs VYM
iShares iBonds Dec 2029 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 | IBTJ | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.07% | 0.04% | |
| AUM | $1.4B | $81.6B | |
| Dividend Yield | 3.79% | 2.24% | |
| Holdings | 36 | 613 | |
| YTD Return | +0.25% | +15.29% | |
| 1Y Return | +1.52% | +22.23% | |
| 3Y Return (annualized) | +4.28% | +18.81% | |
| 5Y Return (annualized) | -0.37% | +12.14% | |
| Volatility (annualized) | 5.4% | 14.5% | |
| Max Drawdown | -20.5% | -58.8% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Feb 25, 2020 | Nov 10, 2006 |
IBTJ vs VYM Performance
iShares iBonds Dec 2029 Term Treasury ETF (IBTJ) 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 IBTJ returned +1.52% while VYM returned +22.23%. Year to date, IBTJ is up 0.25% versus a gain of 15.29% for VYM.
Over three years, IBTJ compounded at +4.28% per year against +18.81% for VYM; over five years the annualized figures are -0.37% and +12.14% respectively. Across the full 7-year window we track, VYM has the edge at +7.02% annualized vs -0.16%. 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 5.4% for IBTJ. 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 -20.5% for IBTJ 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
IBTJ 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, IBTJ currently yields 3.79% against 2.24% for VYM.
Holdings Overlap
IBTJ and VYM share 0 holdings out of 632 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, IBTJ or VYM?
IBTJ 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, IBTJ or VYM?
Over the past year IBTJ returned +1.52% vs +22.23% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (7 years), IBTJ annualized -0.16% vs +7.02% for VYM. Past performance does not guarantee future results.
Which is riskier, IBTJ or VYM?
VYM has been the more volatile fund at 14.5% annualized versus 5.4% for IBTJ. Worst drawdown: IBTJ -20.5% vs VYM -58.8%.
Should I hold both IBTJ and VYM?
IBTJ 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 IBTJ and VYM?
IBTJ and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 632 unique securities.
Which pays a higher dividend, IBTJ or VYM?
IBTJ yields 3.79% while VYM yields 2.24%, so IBTJ currently pays the higher dividend yield.
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