IGIB vs VOO

Quick Verdict

VOO has a lower expense ratio. VOO delivered stronger 1-year returns. VOO offers more diversification with 505 holdings.

Lower Fees: VOOHigher Returns: VOOMore Diversified: VOO

Side-by-Side Comparison

MetricIGIBVOOWinner
Expense Ratio0.04%0.03%
AUM$18.6B$979.0B
Dividend Yield4.80%1.09%
Holdings2,986509
YTD Return-0.37%+13.80%
1Y Return+2.44%+23.71%
3Y Return (annualized)+5.98%+21.50%
5Y Return (annualized)+1.00%+13.44%
Volatility (annualized)5.7%14.1%
Max Drawdown-20.6%-34.3%
Fund FamilyiShares by BlackRock (US)Vanguard (US)
CategoryFixed IncomeEquity
InceptionJan 5, 2007Sep 7, 2010

IGIB vs VOO Performance

iShares 5-10 Year Investment Grade Corporate Bond ETF (IGIB) is a ETF from iShares by BlackRock (US) and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year IGIB returned +2.44% while VOO returned +23.71%. Year to date, IGIB is down 0.37% versus a gain of 13.80% for VOO.

Over three years, IGIB compounded at +5.98% per year against +21.50% for VOO; over five years the annualized figures are +1.00% and +13.44% respectively. Across the full 16-year window we track, VOO has the edge at +13.58% annualized vs +1.28%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VOO has been the more volatile fund, with annualized monthly volatility of 14.1% compared with 5.7% for IGIB. 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 -20.6% for IGIB and -34.3% for VOO. 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

IGIB charges 0.04% per year while VOO charges 0.03%. On a $10,000 position that is $4 vs $3 annually, a gap of $1 per year that compounds over a long holding period. On income, IGIB currently yields 4.80% against 1.09% for VOO.

Holdings Overlap

0.0%overlap

IGIB and VOO share 0 holdings out of 519 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, IGIB or VOO?

IGIB has an expense ratio of 0.04% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $1 per year of difference.

Which performed better, IGIB or VOO?

Over the past year IGIB returned +2.44% vs +23.71% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (16 years), IGIB annualized +1.28% vs +13.58% for VOO. Past performance does not guarantee future results.

Which is riskier, IGIB or VOO?

VOO has been the more volatile fund at 14.1% annualized versus 5.7% for IGIB. Worst drawdown: IGIB -20.6% vs VOO -34.3%.

Should I hold both IGIB and VOO?

IGIB and VOO 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 IGIB and VOO?

IGIB and VOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 519 unique securities.

Which pays a higher dividend, IGIB or VOO?

IGIB yields 4.80% while VOO yields 1.09%, so IGIB currently pays the higher dividend yield.

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