IBTM vs VYM
iShares iBonds Dec 2032 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 558 holdings.
Side-by-Side Comparison
| Metric | IBTM | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.07% | 0.04% | |
| AUM | $559M | $79.0B | |
| Dividend Yield | 3.93% | 2.86% | |
| Holdings | 17 | 568 | |
| YTD Return | -0.95% | +16.16% | |
| 1Y Return | +1.22% | +26.05% | |
| 3Y Return (annualized) | +3.57% | +18.43% | |
| 5Y Return (annualized) | - | +12.21% | |
| Volatility (annualized) | 7.4% | 14.6% | |
| Max Drawdown | -13.6% | -58.8% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jul 6, 2022 | Nov 10, 2006 |
IBTM vs VYM Performance
iShares iBonds Dec 2032 Term Treasury ETF (IBTM) 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 IBTM returned +1.22% while VYM returned +26.05%. Year to date, IBTM is down 0.95% versus a gain of 16.16% for VYM.
Over three years, IBTM compounded at +3.57% per year against +18.43% for VYM. Across the full 4-year window we track, VYM has the edge at +7.09% annualized vs +1.30%. 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 7.4% for IBTM. 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 -13.6% for IBTM 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 0.51. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IBTM 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, IBTM currently yields 3.93% against 2.86% for VYM.
Holdings Overlap
IBTM and VYM share 0 holdings out of 570 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, IBTM or VYM?
IBTM 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, IBTM or VYM?
Over the past year IBTM returned +1.22% vs +26.05% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (4 years), IBTM annualized +1.30% vs +7.09% for VYM. Past performance does not guarantee future results.
Which is riskier, IBTM or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 7.4% for IBTM. Worst drawdown: IBTM -13.6% vs VYM -58.8%.
Should I hold both IBTM and VYM?
IBTM and VYM have a monthly-return correlation of 0.51, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IBTM and VYM?
IBTM and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 570 unique securities.
Which pays a higher dividend, IBTM or VYM?
IBTM yields 3.93% while VYM yields 2.86%, so IBTM currently pays the higher dividend yield.
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