IBTQ vs VYM
iShares iBonds Dec 2035 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 616 holdings.
Side-by-Side Comparison
| Metric | IBTQ | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.07% | 0.04% | |
| AUM | $241M | $81.6B | |
| Dividend Yield | 6.53% | 2.24% | |
| Holdings | 6 | 616 | |
| YTD Return | +2.09% | +14.66% | |
| 1Y Return | +4.65% | +22.16% | |
| 3Y Return (annualized) | - | +18.72% | |
| 5Y Return (annualized) | - | +12.18% | |
| Volatility (annualized) | 4.1% | 14.6% | |
| Max Drawdown | -4.0% | -58.8% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Mar 25, 2025 | Nov 10, 2006 |
IBTQ vs VYM Performance
iShares iBonds Dec 2035 Term Treasury ETF (IBTQ) 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 IBTQ returned +4.65% while VYM returned +22.16%. Year to date, IBTQ is up 2.09% versus a gain of 14.66% for VYM.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 4.1% for IBTQ. 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 -4.0% for IBTQ 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 0.35. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IBTQ 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, IBTQ currently yields 6.53% against 2.24% for VYM.
Holdings Overlap
IBTQ and VYM share 0 holdings out of 607 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, IBTQ or VYM?
IBTQ 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, IBTQ or VYM?
Over the past year IBTQ returned +4.65% vs +22.16% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (1 years), IBTQ annualized +5.98% vs +7.01% for VYM. Past performance does not guarantee future results.
Which is riskier, IBTQ or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 4.1% for IBTQ. Worst drawdown: IBTQ -4.0% vs VYM -58.8%.
Should I hold both IBTQ and VYM?
IBTQ and VYM have a monthly-return correlation of 0.35, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IBTQ and VYM?
IBTQ and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 607 unique securities.
Which pays a higher dividend, IBTQ or VYM?
IBTQ yields 6.53% while VYM yields 2.24%, so IBTQ currently pays the higher dividend yield.
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