IBTP vs VYM
IBTP vs VYM
iShares iBonds Dec 2034 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 | IBTP | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.07% | 0.04% | |
| AUM | $283M | $79.0B | |
| Dividend Yield | 4.03% | 2.86% | |
| Holdings | 5 | 568 | |
| YTD Return | -1.03% | +15.80% | |
| 1Y Return | +1.17% | +26.12% | |
| 3Y Return (annualized) | - | +18.25% | |
| 5Y Return (annualized) | - | +12.51% | |
| Volatility (annualized) | 5.4% | 14.6% | |
| Max Drawdown | -6.9% | -58.8% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jun 11, 2024 | Nov 10, 2006 |
IBTP vs VYM Performance
iShares iBonds Dec 2034 Term Treasury ETF (IBTP) 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 IBTP returned +1.17% while VYM returned +26.12%. Year to date, IBTP is down 1.03% versus a gain of 15.80% for VYM.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 5.4% for IBTP. 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 -6.9% for IBTP 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 0.46. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IBTP 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, IBTP currently yields 4.03% against 2.86% for VYM.
Holdings Overlap
IBTP and VYM share 0 holdings out of 562 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, IBTP or VYM?
IBTP 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, IBTP or VYM?
Over the past year IBTP returned +1.17% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (2 years), IBTP annualized +3.77% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, IBTP or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 5.4% for IBTP. Worst drawdown: IBTP -6.9% vs VYM -58.8%.
Should I hold both IBTP and VYM?
IBTP and VYM have a monthly-return correlation of 0.46, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IBTP and VYM?
IBTP and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 562 unique securities.
Which pays a higher dividend, IBTP or VYM?
IBTP yields 4.03% while VYM yields 2.86%, so IBTP currently pays the higher dividend yield.
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