ILTB vs VYM
iShares Core 10+ Year USD Bond ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. ILTB offers more diversification with 3,866 holdings.
Side-by-Side Comparison
| Metric | ILTB | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.04% | |
| AUM | $596M | $81.6B | |
| Dividend Yield | 5.11% | 2.24% | |
| Holdings | 3,866 | 613 | |
| YTD Return | -2.21% | +14.87% | |
| 1Y Return | +1.16% | +21.39% | |
| 3Y Return (annualized) | +3.36% | +18.69% | |
| 5Y Return (annualized) | -4.49% | +11.98% | |
| Volatility (annualized) | 10.5% | 14.5% | |
| Max Drawdown | -38.0% | -58.8% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Dec 8, 2009 | Nov 10, 2006 |
ILTB vs VYM Performance
iShares Core 10+ Year USD Bond ETF (ILTB) 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 ILTB returned +1.16% while VYM returned +21.39%. Year to date, ILTB is down 2.21% versus a gain of 14.87% for VYM.
Over three years, ILTB compounded at +3.36% per year against +18.69% for VYM; over five years the annualized figures are -4.49% and +11.98% respectively. Across the full 17-year window we track, VYM has the edge at +7.00% annualized vs +0.98%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.5% compared with 10.5% for ILTB. 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 -38.0% for ILTB 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 0.18. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
ILTB charges 0.06% per year while VYM charges 0.04%. On a $10,000 position that is $6 vs $4 annually, a gap of $2 per year that compounds over a long holding period. On income, ILTB currently yields 5.11% against 2.24% for VYM.
Holdings Overlap
ILTB and VYM share 5 holdings out of 4035 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in ILTB | Weight in VYM | Difference |
|---|---|---|---|
| DUK | 0.01% | 0.41% | 0.40% |
| MMC 4.75 03/15/39 | 0.01% | 0.33% | 0.32% |
| HUM 4.625 12/01/42 | 0.01% | 0.20% | 0.19% |
| ADM | Pro | Pro | Pro |
| RPRX | Pro | Pro | Pro |
Frequently Asked Questions
Which is cheaper, ILTB or VYM?
ILTB has an expense ratio of 0.06% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $2 per year of difference.
Which performed better, ILTB or VYM?
Over the past year ILTB returned +1.16% vs +21.39% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (17 years), ILTB annualized +0.98% vs +7.00% for VYM. Past performance does not guarantee future results.
Which is riskier, ILTB or VYM?
VYM has been the more volatile fund at 14.5% annualized versus 10.5% for ILTB. Worst drawdown: ILTB -38.0% vs VYM -58.8%.
Should I hold both ILTB and VYM?
ILTB and VYM have a monthly-return correlation of 0.18, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between ILTB and VYM?
ILTB and VYM share 5 common holdings with a 0.0% weight overlap. Combined, they hold 4035 unique securities.
Which pays a higher dividend, ILTB or VYM?
ILTB yields 5.11% while VYM yields 2.24%, so ILTB currently pays the higher dividend yield.
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