IBHI vs VYM
IBHI vs VYM
iShares iBonds 2029 Term High Yield and Income 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 558 holdings.
Side-by-Side Comparison
| Metric | IBHI | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.35% | 0.04% | |
| AUM | $495M | $79.0B | |
| Dividend Yield | 6.70% | 2.86% | |
| Holdings | 381 | 568 | |
| YTD Return | -1.36% | +13.24% | |
| 1Y Return | +1.40% | +23.76% | |
| 3Y Return (annualized) | +7.06% | +16.97% | |
| 5Y Return (annualized) | - | +12.26% | |
| Volatility (annualized) | 8.8% | 14.6% | |
| Max Drawdown | -13.7% | -58.8% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Mar 8, 2022 | Nov 10, 2006 |
IBHI vs VYM Performance
iShares iBonds 2029 Term High Yield and Income ETF (IBHI) 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 IBHI returned +1.40% while VYM returned +23.76%. Year to date, IBHI is down 1.36% versus a gain of 13.24% for VYM.
Over three years, IBHI compounded at +7.06% per year against +16.97% for VYM. Across the full 4-year window we track, VYM has the edge at +6.96% annualized vs +4.18%. 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 8.8% for IBHI. 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 -13.7% for IBHI 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 0.78. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IBHI charges 0.35% per year while VYM charges 0.04%. On a $10,000 position that is $35 vs $4 annually, a gap of $31 per year that compounds over a long holding period. On income, IBHI currently yields 6.70% against 2.86% for VYM.
Holdings Overlap
IBHI and VYM share 0 holdings out of 934 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, IBHI or VYM?
IBHI has an expense ratio of 0.35% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $31 per year of difference.
Which performed better, IBHI or VYM?
Over the past year IBHI returned +1.40% vs +23.76% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (4 years), IBHI annualized +4.18% vs +6.96% for VYM. Past performance does not guarantee future results.
Which is riskier, IBHI or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 8.8% for IBHI. Worst drawdown: IBHI -13.7% vs VYM -58.8%.
Should I hold both IBHI and VYM?
IBHI and VYM have a monthly-return correlation of 0.78, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IBHI and VYM?
IBHI and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 934 unique securities.
Which pays a higher dividend, IBHI or VYM?
IBHI yields 6.70% while VYM yields 2.86%, so IBHI currently pays the higher dividend yield.
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