IGBH vs VOO

IGBH vs VOO

Which is better, IGBH or VOO?

Ultrashort Term Bond against Large Cap Blend.

VOO has a lower expense ratio. VOO led over 1Y, 3Y, 5Y and the full window.

Lower Fees: VOOHigher Returns: VOO

MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.

Side-by-Side Comparison

MetricIGBHVOO
Expense Ratio0.14%0.03%Best
AUM$242M$997.4B
Dividend Yield5.62%1.08%
Holdings4,130509
YTD Return+2.39%+13.37%Best
1Y Return+5.98%+20.08%Best
3Y Return (annualized)+7.58%+21.29%Best
5Y Return (annualized)+5.40%+12.89%Best
Volatility (annualized)7.4%Best15.1%
Max Drawdown-38.9%-34.3%Best
$10,000 over 5 years$13,008$18,335Best
Fund FamilyiShares by BlackRock (US)Vanguard (US)
CategoryFixed IncomeEquity
StyleUltrashort Term BondLarge Cap Blend
InceptionJul 22, 2015Sep 7, 2010

Not shown on this pair: Top 10 Weight.

Volatility and max drawdown are measured over the window both funds cover: Sep 11, 2015 to Sep 4, 2026 (11 years).

IGBH vs VOO growth

Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 11 years both funds cover.

IGBH vs VOO Performance

iShares Interest Rate Hedged Long-Term Corporate Bond ETF (IGBH) is an ETF from iShares by BlackRock (US) and Vanguard S&P 500 ETF (VOO) is an ETF from Vanguard (US). Over the past year IGBH returned +5.98% while VOO returned +20.08%. Year to date, IGBH is up 2.39% versus a gain of 13.37% for VOO.

Over three years, IGBH compounded at +7.58% per year against +21.29% for VOO; over five years the annualized figures are +5.40% and +12.89% respectively. Across the full 11-year window we track, VOO has the edge at +14.07% annualized vs +2.92%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VOO has been the more volatile fund, with annualized monthly volatility of 15.1% compared with 7.4% for IGBH. 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 -38.9% for IGBH and -34.3% for VOO. Drawdown depth is what each fund did in the worst stretch of the window measured above.

The two funds' monthly returns correlate at 0.71. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

IGBH charges 0.14% per year while VOO charges 0.03%. On a $10,000 position that is $14 vs $3 annually, a gap of $11 per year that compounds over a long holding period. On income, IGBH currently yields 5.62% against 1.08% for VOO.

Holdings Overlap

We hold position weights for 2 holdings in IGBH and 505 in VOO, totalling 97.9% and 99.9% of the two funds. The two books name no position in common, so there is no overlap percentage to show.

0 positions in common, counted across the 2 positions we hold weights for in IGBH and 505 in VOO, against full books of 4,130 and 509.

You are not choosing between two funds in isolation.

Whichever of IGBH and VOO you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.

IGBHVOO

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, IGBH or VOO?

IGBH has an expense ratio of 0.14% while VOO charges 0.03%. VOO is the cheaper option, by $11 a year on a $10,000 investment.

Which performed better, IGBH or VOO?

Over the past year IGBH returned +5.98% vs +20.08% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (11 years), IGBH annualized +2.92% vs +14.07% for VOO. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, IGBH or VOO?

VOO has been the more volatile fund at 15.1% annualized versus 7.4% for IGBH. Worst drawdown: IGBH -38.9% vs VOO -34.3%.

Should I hold both IGBH and VOO?

IGBH and VOO have a monthly-return correlation of 0.71, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.

Which pays a higher dividend, IGBH or VOO?

IGBH yields 5.62% while VOO yields 1.08%, so IGBH currently pays the higher dividend yield.

Is VOO better than IGBH?

VOO has a lower expense ratio. VOO led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.