ABXB vs VYM

Quick Verdict

VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.

Lower Fees: VYMHigher Returns: VYMMore Diversified: VYM

Side-by-Side Comparison

MetricABXBVYMWinner
Expense Ratio0.62%0.04%
AUM$2M$79.0B
Dividend Yield5.07%2.86%
Holdings7568
YTD Return-1.64%+16.16%
1Y Return+1.20%+26.05%
3Y Return (annualized)+5.25%+18.43%
5Y Return (annualized)+0.66%+12.21%
Volatility (annualized)5.7%14.6%
Max Drawdown-17.0%-58.8%
Fund FamilyDonoghue Forlines ETFsVanguard (US)
CategoryFixed IncomeEquity
InceptionDec 7, 2020Nov 10, 2006

ABXB vs VYM Performance

Abacus Flexible Bond Leaders ETF (ABXB) is a ETF from Donoghue Forlines ETFs and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year ABXB returned +1.20% while VYM returned +26.05%. Year to date, ABXB is down 1.64% versus a gain of 16.16% for VYM.

Over three years, ABXB compounded at +5.25% per year against +18.43% for VYM; over five years the annualized figures are +0.66% and +12.21% respectively. Across the full 6-year window we track, VYM has the edge at +7.09% annualized vs +0.87%. 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 5.7% for ABXB. 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 -17.0% for ABXB 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 0.62. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

ABXB charges 0.62% per year while VYM charges 0.04%. On a $10,000 position that is $62 vs $4 annually, a gap of $58 per year that compounds over a long holding period. On income, ABXB currently yields 5.07% against 2.86% for VYM.

Holdings Overlap

0.0%overlap

ABXB and VYM share 0 holdings out of 565 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, ABXB or VYM?

ABXB has an expense ratio of 0.62% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $58 per year of difference.

Which performed better, ABXB or VYM?

Over the past year ABXB returned +1.20% vs +26.05% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (6 years), ABXB annualized +0.87% vs +7.09% for VYM. Past performance does not guarantee future results.

Which is riskier, ABXB or VYM?

VYM has been the more volatile fund at 14.6% annualized versus 5.7% for ABXB. Worst drawdown: ABXB -17.0% vs VYM -58.8%.

Should I hold both ABXB and VYM?

ABXB and VYM have a monthly-return correlation of 0.62, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between ABXB and VYM?

ABXB and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 565 unique securities.

Which pays a higher dividend, ABXB or VYM?

ABXB yields 5.07% while VYM yields 2.86%, so ABXB currently pays the higher dividend yield.

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