IBTO vs VTI
iShares iBonds Dec 2033 Term Treasury ETF vs Vanguard Morningstar Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. VTI delivered stronger 1-year returns. VTI offers more diversification with 3,543 holdings.
Side-by-Side Comparison
| Metric | IBTO | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.07% | 0.03% | |
| AUM | $465M | $666.9B | |
| Dividend Yield | 4.17% | 1.07% | |
| Holdings | 12 | 3,543 | |
| YTD Return | -0.84% | +13.14% | |
| 1Y Return | +1.60% | +22.35% | |
| 3Y Return (annualized) | +4.51% | +21.83% | |
| 5Y Return (annualized) | - | +12.01% | |
| Volatility (annualized) | 6.6% | 15.3% | |
| Max Drawdown | -8.4% | -56.6% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jun 27, 2023 | May 24, 2001 |
IBTO vs VTI Performance
iShares iBonds Dec 2033 Term Treasury ETF (IBTO) is a ETF from iShares by BlackRock (US) and Vanguard Morningstar Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year IBTO returned +1.60% while VTI returned +22.35%. Year to date, IBTO is down 0.84% versus a gain of 13.14% for VTI.
Over three years, IBTO compounded at +4.51% per year against +21.83% for VTI. Across the full 3-year window we track, VTI has the edge at +8.09% annualized vs +3.19%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTI has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 6.6% for IBTO. 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 -8.4% for IBTO 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 0.48. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IBTO charges 0.07% per year while VTI charges 0.03%. On a $10,000 position that is $7 vs $3 annually, a gap of $4 per year that compounds over a long holding period. On income, IBTO currently yields 4.17% against 1.07% for VTI.
Holdings Overlap
IBTO and VTI share 0 holdings out of 2792 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, IBTO or VTI?
IBTO has an expense ratio of 0.07% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $4 per year of difference.
Which performed better, IBTO or VTI?
Over the past year IBTO returned +1.60% vs +22.35% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (3 years), IBTO annualized +3.19% vs +8.09% for VTI. Past performance does not guarantee future results.
Which is riskier, IBTO or VTI?
VTI has been the more volatile fund at 15.3% annualized versus 6.6% for IBTO. Worst drawdown: IBTO -8.4% vs VTI -56.6%.
Should I hold both IBTO and VTI?
IBTO and VTI have a monthly-return correlation of 0.48, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IBTO and VTI?
IBTO and VTI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2792 unique securities.
Which pays a higher dividend, IBTO or VTI?
IBTO yields 4.17% while VTI yields 1.07%, so IBTO currently pays the higher dividend yield.
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