IBHK vs VYM
IBHK vs VYM
iShares iBonds 2031 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 | IBHK | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.35% | 0.04% | |
| AUM | $71M | $79.0B | |
| Dividend Yield | 6.47% | 2.86% | |
| Holdings | 283 | 568 | |
| YTD Return | -1.53% | +15.57% | |
| 1Y Return | +0.95% | +25.99% | |
| 3Y Return (annualized) | - | +18.02% | |
| 5Y Return (annualized) | - | +12.71% | |
| Volatility (annualized) | 4.0% | 14.6% | |
| Max Drawdown | -4.8% | -58.8% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | May 22, 2024 | Nov 10, 2006 |
IBHK vs VYM Performance
iShares iBonds 2031 Term High Yield and Income ETF (IBHK) 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 IBHK returned +0.95% while VYM returned +25.99%. Year to date, IBHK is down 1.53% versus a gain of 15.57% for VYM.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 4.0% for IBHK. 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 -4.8% for IBHK 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 0.74. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IBHK 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, IBHK currently yields 6.47% against 2.86% for VYM.
Holdings Overlap
IBHK and VYM share 0 holdings out of 744 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, IBHK or VYM?
IBHK 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, IBHK or VYM?
Over the past year IBHK returned +0.95% vs +25.99% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (2 years), IBHK annualized +5.39% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, IBHK or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 4.0% for IBHK. Worst drawdown: IBHK -4.8% vs VYM -58.8%.
Should I hold both IBHK and VYM?
IBHK and VYM have a monthly-return correlation of 0.74, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IBHK and VYM?
IBHK and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 744 unique securities.
Which pays a higher dividend, IBHK or VYM?
IBHK yields 6.47% while VYM yields 2.86%, so IBHK currently pays the higher dividend yield.
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