BAI vs VYM

BAI vs VYM

Which is better, BAI or VYM?

Large Cap Blend against Large Cap Value.

VYM has a lower expense ratio. BAI led over 1Y and the full window. VYM is less concentrated, with 25.9% of the fund in its ten largest positions against 43.4%.

Lower Fees: VYMHigher Returns: BAILess Concentrated: VYM

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

MetricBAIVYM
Expense Ratio0.55%0.04%Best
AUM$13.9B$81.6B
Dividend Yield1.41%2.24%
Holdings55613
YTD Return+31.85%Best+14.82%
1Y Return+43.07%Best+20.84%
3Y Return (annualized)-+18.64%
5Y Return (annualized)-+12.28%
Volatility (annualized)37.5%10.5%Best
Max Drawdown-34.1%-14.5%Best
$10,000 over 1.9 years$18,309Best$13,269
Top 10 Weight43.4%25.9%Best
Fund FamilyiShares by BlackRock (US)Vanguard (US)
CategoryEquityEquity
StyleLarge Cap BlendLarge Cap Value
InceptionOct 21, 2024Nov 10, 2006

Volatility and max drawdown, and the $10,000 over 1.9 years row, are measured over the window both funds cover: Oct 22, 2024 to Sep 4, 2026 (1.9 years).

BAI 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 1.9 years both funds cover.

BAI vs VYM Performance

iShares AI Innovation and Tech Active ETF (BAI) 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 BAI returned +43.07% while VYM returned +20.84%. Year to date, BAI is up 31.85% versus a gain of 14.82% for VYM.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

BAI has been the more volatile fund, with annualized monthly volatility of 37.5% compared with 10.5% for VYM. 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 -34.1% for BAI and -14.5% 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 0.38. They move together some of the time, and apart the rest.

Fees and Cost Over Time

BAI charges 0.55% per year while VYM charges 0.04%. On a $10,000 position that is $55 vs $4 annually, a gap of $51 per year that compounds over a long holding period. On income, BAI currently yields 1.41% against 2.24% for VYM.

Holdings Overlap

BAI already in VYM5.4%
VYM already in BAI7.3%

5.4% of BAI's money is in holdings VYM also owns. 7.3% of VYM's money is in holdings BAI also owns.

VYM and BAI share little of their money.

1 positions in common, counted across the 47 positions we hold weights for in BAI and 602 in VYM, against full books of 55 and 613.

What only one of them owns

Our book lists 568 positions for VYM that do not appear in our book for BAI (90.0% of the fund), and 33 for BAI that do not appear in VYM (66.6%).

Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.

Top Shared Holdings

StockWeight in BAIWeight in VYMDifference
AVGOBroadcom Inc5.37%7.29%1.92%

You are not choosing between two funds in isolation.

Whichever of BAI and VYM you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.

BAIVYM

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Frequently Asked Questions

Which is cheaper, BAI or VYM?

BAI has an expense ratio of 0.55% while VYM charges 0.04%. VYM is the cheaper option, by $51 a year on a $10,000 investment.

Which performed better, BAI or VYM?

Over the past year BAI returned +43.07% vs +20.84% for VYM, so BAI leads on 1-year performance. Over the longest common window we track (2 years), BAI annualized +37.48% vs +16.05% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, BAI or VYM?

BAI has been the more volatile fund at 37.5% annualized versus 10.5% for VYM. Worst drawdown: BAI -34.1% vs VYM -14.5%.

Should I hold both BAI and VYM?

BAI and VYM have a monthly-return correlation of 0.38, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.

What is the holdings overlap between BAI and VYM?

7.3% of VYM's money is in holdings BAI also owns. 7.3% of VYM's is in holdings BAI also owns. They hold 1 positions in common, counted across the 47 positions we hold weights for in BAI and 602 in VYM.

Which pays a higher dividend, BAI or VYM?

BAI yields 1.41% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.

Is VYM better than BAI?

VYM has a lower expense ratio. BAI led over 1Y and the full window. VYM is less concentrated, with 25.9% of the fund in its ten largest positions against 43.4%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.