IBHG vs VOO
iShares iBonds 2027 Term High Yield and Income ETF vs Vanguard S&P 500 ETF
Which is better, IBHG or VOO?
High Yield Bond against Large Cap Blend.
VOO has a lower expense ratio. VOO led over 1Y, 3Y, 5Y and the full window. IBHG is less concentrated, with 24.0% of the fund in its ten largest positions against 37.9%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | IBHG | VOO |
|---|---|---|
| Expense Ratio | 0.35% | 0.03%Best |
| AUM | $532M | $1.0T |
| Dividend Yield | 5.98% | 1.06% |
| Holdings | 394 | 506 |
| YTD Return | -2.38% | +13.57%Best |
| 1Y Return | -1.91% | +17.55%Best |
| 3Y Return (annualized) | +5.93% | +22.46%Best |
| 5Y Return (annualized) | +2.58% | +13.28%Best |
| Volatility (annualized) | 6.7%Best | 15.5% |
| Max Drawdown | -13.8%Best | -24.5% |
| $10,000 over 5 years | $11,358 | $18,654Best |
| Top 10 Weight | 24.0%Best | 37.9% |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) |
| Category | Fixed Income | Equity |
| Style | High Yield Bond | Large Cap Blend |
| Inception | Jul 7, 2021 | Sep 7, 2010 |
Volatility and max drawdown are measured over the window both funds cover: Jul 9, 2021 to Oct 14, 2026 (5.3 years).
IBHG vs VOO growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 5.3 years both funds cover.
IBHG vs VOO Performance
iShares iBonds 2027 Term High Yield and Income ETF (IBHG) is an ETF from iShares by BlackRock (US) and Vanguard S&P 500 ETF (VOO) is an ETF from Vanguard (US). Over the past year IBHG returned -1.91% while VOO returned +17.55%. Year to date, IBHG is down 2.38% versus a gain of 13.57% for VOO.
Over three years, IBHG compounded at +5.93% per year against +22.46% for VOO; over five years the annualized figures are +2.58% and +13.28% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VOO has been the more volatile fund, with annualized monthly volatility of 15.5% compared with 6.7% for IBHG. 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 -13.8% for IBHG and -24.5% for VOO. Drawdown depth is what each fund did in the worst stretch of the window measured above.
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
IBHG charges 0.35% per year while VOO charges 0.03%. On a $10,000 position that is $35 vs $3 annually, a gap of $32 per year that compounds over a long holding period. On income, IBHG currently yields 5.98% against 1.06% for VOO.
Holdings Overlap
We hold position weights for 375 holdings in IBHG and 504 in VOO, totalling 96.3% and 100.1% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 375 positions we hold weights for in IBHG and 504 in VOO, against full books of 394 and 506.
What only one of them owns
Measured across the 375 and 504 positions we hold weights for.
VOO holds 494 positions IBHG does not, 99.7% of the fund.
Largest: NVDA 8.09%, AAPL 7.04%, MSFT 5.70%, AMZN 3.85%, GOOGL 3.01%
You are not choosing between two funds in isolation.
Whichever of IBHG and VOO you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, IBHG or VOO?
IBHG has an expense ratio of 0.35% while VOO charges 0.03%. VOO is the cheaper option, by $32 a year on a $10,000 investment.
Which performed better, IBHG or VOO?
Over the past year IBHG returned -1.91% vs +17.55% for VOO, so VOO leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, IBHG or VOO?
VOO has been the more volatile fund at 15.5% annualized versus 6.7% for IBHG. Worst drawdown: IBHG -13.8% vs VOO -24.5%.
Should I hold both IBHG and VOO?
IBHG and VOO have a monthly-return correlation of 0.78, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, IBHG or VOO?
IBHG yields 5.98% while VOO yields 1.06%, so IBHG currently pays the higher dividend yield.
Is VOO better than IBHG?
VOO has a lower expense ratio. VOO led over 1Y, 3Y, 5Y and the full window. IBHG is less concentrated, with 24.0% of the fund in its ten largest positions against 37.9%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.