IGEB vs VYM
iShares Investment Grade Systematic Bond 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 | IGEB | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.04% | |
| AUM | $1.5B | $81.6B | |
| Dividend Yield | 5.14% | 2.24% | |
| Holdings | 475 | 616 | |
| YTD Return | -3.04% | +16.42% | |
| 1Y Return | -1.15% | +24.22% | |
| 3Y Return (annualized) | +4.80% | +19.03% | |
| 5Y Return (annualized) | -0.20% | +12.21% | |
| Volatility (annualized) | 7.3% | 14.6% | |
| Max Drawdown | -21.1% | -58.8% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jul 11, 2017 | Nov 10, 2006 |
IGEB vs VYM Performance
iShares Investment Grade Systematic Bond ETF (IGEB) 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 IGEB returned -1.15% while VYM returned +24.22%. Year to date, IGEB is down 3.04% versus a gain of 16.42% for VYM.
Over three years, IGEB compounded at +4.80% per year against +19.03% for VYM; over five years the annualized figures are -0.20% and +12.21% respectively. Across the full 9-year window we track, VYM has the edge at +7.10% annualized vs +2.59%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 7.3% for IGEB. 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 -21.1% for IGEB 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 0.54. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IGEB charges 0.18% per year while VYM charges 0.04%. On a $10,000 position that is $18 vs $4 annually, a gap of $14 per year that compounds over a long holding period. On income, IGEB currently yields 5.14% against 2.24% for VYM.
Holdings Overlap
Frequently Asked Questions
Which is cheaper, IGEB or VYM?
IGEB has an expense ratio of 0.18% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $14 per year of difference.
Which performed better, IGEB or VYM?
Over the past year IGEB returned -1.15% vs +24.22% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (9 years), IGEB annualized +2.59% vs +7.10% for VYM. Past performance does not guarantee future results.
Which is riskier, IGEB or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 7.3% for IGEB. Worst drawdown: IGEB -21.1% vs VYM -58.8%.
Should I hold both IGEB and VYM?
IGEB and VYM have a monthly-return correlation of 0.54, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IGEB and VYM?
IGEB and VYM share 2 common holdings with a 0.5% weight overlap. Combined, they hold 975 unique securities.
Which pays a higher dividend, IGEB or VYM?
IGEB yields 5.14% while VYM yields 2.24%, so IGEB currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.