ISTB vs VOO
iShares Core 1-5 Year USD Bond ETF vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. VOO delivered stronger 1-year returns. ISTB offers more diversification with 2218 holdings.
Side-by-Side Comparison
| Metric | ISTB | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.03% | |
| AUM | $5.1B | $979.0B | |
| Dividend Yield | 4.24% | 1.09% | |
| Holdings | 7,038 | 509 | |
| YTD Return | +0.57% | +13.72% | |
| 1Y Return | +2.66% | +21.63% | |
| 3Y Return (annualized) | +5.16% | +21.55% | |
| 5Y Return (annualized) | +1.96% | +13.26% | |
| Volatility (annualized) | 2.2% | 14.1% | |
| Max Drawdown | -50.1% | -34.3% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Oct 18, 2012 | Sep 7, 2010 |
ISTB vs VOO Performance
iShares Core 1-5 Year USD Bond ETF (ISTB) 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 ISTB returned +2.66% while VOO returned +21.63%. Year to date, ISTB is up 0.57% versus a gain of 13.72% for VOO.
Over three years, ISTB compounded at +5.16% per year against +21.55% for VOO; over five years the annualized figures are +1.96% and +13.26% respectively. Across the full 14-year window we track, VOO has the edge at +13.56% annualized vs +0.93%. 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 2.2% for ISTB. 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 -50.1% for ISTB 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 0.42. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
ISTB charges 0.06% per year while VOO charges 0.03%. On a $10,000 position that is $6 vs $3 annually, a gap of $3 per year that compounds over a long holding period. On income, ISTB currently yields 4.24% against 1.09% for VOO.
Holdings Overlap
Frequently Asked Questions
Which is cheaper, ISTB or VOO?
ISTB has an expense ratio of 0.06% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, ISTB or VOO?
Over the past year ISTB returned +2.66% vs +21.63% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (14 years), ISTB annualized +0.93% vs +13.56% for VOO. Past performance does not guarantee future results.
Which is riskier, ISTB or VOO?
VOO has been the more volatile fund at 14.1% annualized versus 2.2% for ISTB. Worst drawdown: ISTB -50.1% vs VOO -34.3%.
Should I hold both ISTB and VOO?
ISTB and VOO have a monthly-return correlation of 0.42, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between ISTB and VOO?
ISTB and VOO share 2 common holdings with a 0.0% weight overlap. Combined, they hold 2721 unique securities.
Which pays a higher dividend, ISTB or VOO?
ISTB yields 4.24% while VOO yields 1.09%, so ISTB currently pays the higher dividend yield.
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