IGBH vs VTI

Quick Verdict

VTI has a lower expense ratio. VTI delivered stronger 1-year returns. IGBH offers more diversification with 4,130 holdings.

Lower Fees: VTIHigher Returns: VTIMore Diversified: IGBH

Side-by-Side Comparison

MetricIGBHVTIWinner
Expense Ratio0.14%0.03%
AUM$233M$666.9B
Dividend Yield5.62%1.07%
Holdings4,1303,543
YTD Return+1.43%+14.82%
1Y Return+4.98%+22.43%
3Y Return (annualized)+7.51%+21.93%
5Y Return (annualized)+5.33%+12.34%
Volatility (annualized)7.5%15.4%
Max Drawdown-38.9%-56.6%
Fund FamilyiShares by BlackRock (US)Vanguard (US)
CategoryFixed IncomeEquity
InceptionJul 22, 2015May 24, 2001

IGBH vs VTI Performance

iShares Interest Rate Hedged Long-Term Corporate Bond ETF (IGBH) 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 IGBH returned +4.98% while VTI returned +22.43%. Year to date, IGBH is up 1.43% versus a gain of 14.82% for VTI.

Over three years, IGBH compounded at +7.51% per year against +21.93% for VTI; over five years the annualized figures are +5.33% and +12.34% respectively. Across the full 11-year window we track, VTI has the edge at +8.16% annualized vs +2.84%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VTI has been the more volatile fund, with annualized monthly volatility of 15.4% compared with 7.5% 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 -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 0.72. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

IGBH charges 0.14% per year while VTI 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 1.07% for VTI.

Holdings Overlap

0.0%overlap

IGBH and VTI share 0 holdings out of 2863 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, IGBH or VTI?

IGBH has an expense ratio of 0.14% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $11 per year of difference.

Which performed better, IGBH or VTI?

Over the past year IGBH returned +4.98% vs +22.43% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (11 years), IGBH annualized +2.84% vs +8.16% for VTI. Past performance does not guarantee future results.

Which is riskier, IGBH or VTI?

VTI has been the more volatile fund at 15.4% annualized versus 7.5% for IGBH. Worst drawdown: IGBH -38.9% vs VTI -56.6%.

Should I hold both IGBH and VTI?

IGBH and VTI have a monthly-return correlation of 0.72, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between IGBH and VTI?

IGBH and VTI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2863 unique securities.

Which pays a higher dividend, IGBH or VTI?

IGBH yields 5.62% while VTI yields 1.07%, so IGBH currently pays the higher dividend yield.

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