ISTB vs. IBDU
ISTB (iShares Core 1-5 Year USD Bond ETF) and IBDU (iShares iBonds Dec 2029 Term Corporate ETF) are both exchange-traded funds - ISTB is a Short-Term Bond fund tracking the BBG US Universal 1-5 Year Index (USD), while IBDU is a Corporate Bonds fund tracking the Bloomberg December 2029 Maturity Corporate Index. Both are passively managed. Over the past 5 years, ISTB returned 1.85%/yr vs 1.29%/yr for IBDU. A 0.80 correlation means they provide meaningful diversification when combined. ISTB charges 0.06%/yr vs 0.10%/yr for IBDU.
Performance
ISTB vs. IBDU - Performance Comparison
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Returns By Period
In the year-to-date period, ISTB achieves a 0.49% return, which is significantly lower than IBDU's 0.54% return.
ISTB
- 1D
- -0.08%
- 1M
- 0.15%
- YTD
- 0.49%
- 6M
- 0.71%
- 1Y
- 4.19%
- 3Y*
- 4.95%
- 5Y*
- 1.85%
- 10Y*
- 2.27%
IBDU
- 1D
- -0.13%
- 1M
- 0.12%
- YTD
- 0.54%
- 6M
- 0.88%
- 1Y
- 4.76%
- 3Y*
- 5.73%
- 5Y*
- 1.29%
- 10Y*
- —
ISTB vs. IBDU - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | |
|---|---|---|---|---|---|---|---|---|
ISTB iShares Core 1-5 Year USD Bond ETF | 0.49% | 6.36% | 4.37% | 5.56% | -6.08% | -0.71% | 4.75% | 1.00% |
IBDU iShares iBonds Dec 2029 Term Corporate ETF | 0.54% | 7.59% | 3.62% | 8.67% | -13.04% | -2.05% | 10.38% | 2.22% |
Correlation
The correlation between ISTB and IBDU is 0.91, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.91 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.92 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.88 |
Correlation (All Time) Calculated using the full available price history since Sep 20, 2019 | 0.80 |
The correlation between ISTB and IBDU shifts across timeframes, from 0.80 (all time) to 0.92 (3 years), reflecting how their relationship changes across market environments.
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Return for Risk
ISTB vs. IBDU — Risk / Return Rank
ISTB
IBDU
ISTB vs. IBDU - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Core 1-5 Year USD Bond ETF (ISTB) and iShares iBonds Dec 2029 Term Corporate ETF (IBDU). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
| ISTB | IBDU | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.25 | ||
| Sortino ratioReturn per unit of downside risk | +0.40 | ||
| Omega ratioGain probability vs. loss probability | 1.46 | 1.41 | +0.06 |
| Calmar ratioReturn relative to maximum drawdown | 3.34 | 3.02 | +0.32 |
| Martin ratioReturn relative to average drawdown | 12.72 | 11.33 | +1.38 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| ISTB | IBDU | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 2.37 | 2.12 | +0.25 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.67 | 0.23 | +0.44 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.91 | — | — |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.84 | 0.33 | +0.51 |
Drawdowns
ISTB vs. IBDU - Drawdown Comparison
The maximum ISTB drawdown since its inception was -9.34%, smaller than the maximum IBDU drawdown of -19.44%. Use the drawdown chart below to compare losses from any high point for ISTB and IBDU.
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Drawdown Indicators
| ISTB | IBDU | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -9.34% | -19.44% | +10.10% |
Max Drawdown (1Y)Largest decline over 1 year | -1.26% | -1.59% | +0.33% |
Max Drawdown (3Y)Largest decline over 3 years | -1.36% | -4.14% | +2.78% |
Max Drawdown (5Y)Largest decline over 5 years | -9.34% | -19.44% | +10.10% |
Max Drawdown (10Y)Largest decline over 10 years | -9.34% | — | — |
Current DrawdownCurrent decline from peak | -0.42% | -0.54% | +0.12% |
Average DrawdownAverage peak-to-trough decline | -1.22% | -5.41% | +4.19% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.33% | 0.42% | -0.09% |
Volatility
ISTB vs. IBDU - Volatility Comparison
The current volatility for iShares Core 1-5 Year USD Bond ETF (ISTB) is 0.54%, while iShares iBonds Dec 2029 Term Corporate ETF (IBDU) has a volatility of 0.58%. This indicates that ISTB experiences smaller price fluctuations and is considered to be less risky than IBDU based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| ISTB | IBDU | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.54% | 0.58% | -0.04% |
Volatility (6M)Calculated over the trailing 6-month period | 1.28% | 1.49% | -0.21% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.77% | 2.26% | -0.49% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 2.79% | 5.72% | -2.93% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 2.51% | 7.32% | -4.81% |
ISTB vs. IBDU - Expense Ratio Comparison
ISTB has a 0.06% expense ratio, which is lower than IBDU's 0.10% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Dividends
ISTB vs. IBDU - Dividend Comparison
ISTB's dividend yield for the trailing twelve months is around 4.25%, less than IBDU's 4.66% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IBDU iShares iBonds Dec 2029 Term Corporate ETF | 4.66% | 4.67% | 4.75% | 4.21% | 3.34% | 2.29% | 2.42% | 0.74% | 0.00% | 0.00% | 0.00% | 0.00% |
ISTB iShares Core 1-5 Year USD Bond ETF | 4.25% | 4.12% | 3.83% | 2.97% | 2.01% | 1.69% | 2.20% | 2.75% | 2.57% | 2.06% | 1.90% | 1.58% |
Frequently Asked Questions
With a correlation of 0.91, ISTB and IBDU move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.
IBDU has higher volatility (0.58%) compared to ISTB (0.54%). In terms of maximum drawdown, ISTB dropped -9.34% vs IBDU's -19.44%.
On 5-year performance, ISTB leads with 1.85% vs 1.29% for IBDU. On fees, ISTB is cheaper at 0.06% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 5-year period, ISTB has performed better with a 1.85% return vs 1.29%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
ISTB is cheaper with a 0.06% expense ratio, compared with 0.10% for IBDU.
IBDU has the higher dividend yield at 4.66%, compared with 4.25% for ISTB.
ISTB is categorized as Short-Term Bond, while IBDU is Corporate Bonds. ISTB tracks BBG US Universal 1-5 Year Index (USD), while IBDU tracks Bloomberg December 2029 Maturity Corporate Index. Their fees differ too: 0.06% for ISTB and 0.10% for IBDU.
ISTB currently has the higher Sharpe Ratio (2.37 vs 2.12), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.
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