IBHG vs VYM
iShares iBonds 2027 Term High Yield and Income ETF vs Vanguard High Dividend Yield ETF
Which is better, IBHG or VYM?
High Yield Bond against Large Cap Value.
VYM has a lower expense ratio. VYM 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 25.8%.
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 | VYM |
|---|---|---|
| Expense Ratio | 0.35% | 0.04%Best |
| AUM | $532M | $78.9B |
| Dividend Yield | 5.98% | 2.37% |
| Holdings | 394 | 608 |
| YTD Return | -2.38% | +11.83%Best |
| 1Y Return | -1.91% | +15.96%Best |
| 3Y Return (annualized) | +5.93% | +18.60%Best |
| 5Y Return (annualized) | +2.58% | +11.51%Best |
| Volatility (annualized) | 6.7%Best | 13.7% |
| Max Drawdown | -13.8%Best | -15.8% |
| $10,000 over 5 years | $11,358 | $17,241Best |
| Top 10 Weight | 24.0%Best | 25.8% |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) |
| Category | Fixed Income | Equity |
| Style | High Yield Bond | Large Cap Value |
| Inception | Jul 7, 2021 | Nov 10, 2006 |
Volatility and max drawdown are measured over the window both funds cover: Jul 9, 2021 to Oct 14, 2026 (5.3 years).
IBHG vs VYM 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 VYM Performance
iShares iBonds 2027 Term High Yield and Income ETF (IBHG) is an ETF from iShares by BlackRock (US) and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year IBHG returned -1.91% while VYM returned +15.96%. Year to date, IBHG is down 2.38% versus a gain of 11.83% for VYM.
Over three years, IBHG compounded at +5.93% per year against +18.60% for VYM; over five years the annualized figures are +2.58% and +11.51% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 13.7% 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 -15.8% for VYM. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.73. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IBHG 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, IBHG currently yields 5.98% against 2.37% for VYM.
Holdings Overlap
We hold position weights for 375 holdings in IBHG and 602 in VYM, totalling 96.3% and 100.0% 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 602 in VYM, against full books of 394 and 608.
What only one of them owns
Measured across the 375 and 602 positions we hold weights for.
VYM holds 568 positions IBHG does not, 97.9% of the fund.
Largest: AVGO 6.94%, JPM 3.83%, XOM 2.70%, JNJ 2.58%, ABBV 1.83%
You are not choosing between two funds in isolation.
Whichever of IBHG and VYM 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 VYM?
IBHG has an expense ratio of 0.35% while VYM charges 0.04%. VYM is the cheaper option, by $31 a year on a $10,000 investment.
Which performed better, IBHG or VYM?
Over the past year IBHG returned -1.91% vs +15.96% for VYM, so VYM leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, IBHG or VYM?
VYM has been the more volatile fund at 13.7% annualized versus 6.7% for IBHG. Worst drawdown: IBHG -13.8% vs VYM -15.8%.
Should I hold both IBHG and VYM?
IBHG and VYM have a monthly-return correlation of 0.73, 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 VYM?
IBHG yields 5.98% while VYM yields 2.37%, so IBHG currently pays the higher dividend yield.
Is VYM better than IBHG?
VYM has a lower expense ratio. VYM 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 25.8%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.