IUSB vs VYM
IUSB vs VYM
iShares Core Universal USD Bond ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. IUSB offers more diversification with 9319 holdings.
Side-by-Side Comparison
| Metric | IUSB | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.04% | |
| AUM | $43.1B | $79.0B | |
| Dividend Yield | 4.20% | 2.86% | |
| Holdings | 17,578 | 568 | |
| YTD Return | -0.45% | +13.82% | |
| 1Y Return | +1.98% | +24.08% | |
| 3Y Return (annualized) | +4.40% | +17.72% | |
| 5Y Return (annualized) | -0.09% | +12.13% | |
| Volatility (annualized) | 4.8% | 14.6% | |
| Max Drawdown | -50.2% | -58.8% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jun 10, 2014 | Nov 10, 2006 |
IUSB vs VYM Performance
iShares Core Universal USD Bond ETF (IUSB) 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 IUSB returned +1.98% while VYM returned +24.08%. Year to date, IUSB is down 0.45% versus a gain of 13.82% for VYM.
Over three years, IUSB compounded at +4.40% per year against +17.72% for VYM; over five years the annualized figures are -0.09% and +12.13% respectively. Across the full 12-year window we track, VYM has the edge at +6.98% annualized vs +0.65%. 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 4.8% for IUSB. 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 -50.2% for IUSB 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 0.36. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IUSB 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, IUSB currently yields 4.20% against 2.86% for VYM.
Holdings Overlap
Frequently Asked Questions
Which is cheaper, IUSB or VYM?
IUSB 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, IUSB or VYM?
Over the past year IUSB returned +1.98% vs +24.08% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (12 years), IUSB annualized +0.65% vs +6.98% for VYM. Past performance does not guarantee future results.
Which is riskier, IUSB or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 4.8% for IUSB. Worst drawdown: IUSB -50.2% vs VYM -58.8%.
Should I hold both IUSB and VYM?
IUSB and VYM have a monthly-return correlation of 0.36, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IUSB and VYM?
IUSB and VYM share 2 common holdings with a 0.0% weight overlap. Combined, they hold 9875 unique securities.
Which pays a higher dividend, IUSB or VYM?
IUSB yields 4.20% while VYM yields 2.86%, so IUSB currently pays the higher dividend yield.
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