BBN vs VYM
BlackRock Taxable Municipal Bond Trust vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 616 holdings.
Side-by-Side Comparison
| Metric | BBN | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 1.07% | 0.04% | |
| AUM | $1.0B | $81.6B | |
| Dividend Yield | 7.16% | 2.24% | |
| Holdings | 202 | 616 | |
| YTD Return | +1.42% | +16.42% | |
| 1Y Return | +4.91% | +24.22% | |
| 3Y Return (annualized) | +7.22% | +19.03% | |
| 5Y Return (annualized) | -3.34% | +12.21% | |
| Volatility (annualized) | 12.8% | 14.6% | |
| Max Drawdown | -38.4% | -58.8% | |
| Fund Family | BlackRock, Inc. (US) | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Aug 27, 2010 | Nov 10, 2006 |
BBN vs VYM Performance
BlackRock Taxable Municipal Bond Trust (BBN) is a ETF from BlackRock, Inc. (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year BBN returned +4.91% while VYM returned +24.22%. Year to date, BBN is up 1.42% versus a gain of 16.42% for VYM.
Over three years, BBN compounded at +7.22% per year against +19.03% for VYM; over five years the annualized figures are -3.34% and +12.21% respectively. Across the full 16-year window we track, VYM has the edge at +7.10% annualized vs +0.90%. 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 12.8% for BBN. 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 -38.4% for BBN 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 0.35. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BBN charges 1.07% per year while VYM charges 0.04%. On a $10,000 position that is $107 vs $4 annually, a gap of $103 per year that compounds over a long holding period. On income, BBN currently yields 7.16% against 2.24% for VYM.
Holdings Overlap
BBN and VYM share 0 holdings out of 694 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, BBN or VYM?
BBN has an expense ratio of 1.07% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $103 per year of difference.
Which performed better, BBN or VYM?
Over the past year BBN returned +4.91% vs +24.22% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (16 years), BBN annualized +0.90% vs +7.10% for VYM. Past performance does not guarantee future results.
Which is riskier, BBN or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 12.8% for BBN. Worst drawdown: BBN -38.4% vs VYM -58.8%.
Should I hold both BBN and VYM?
BBN and VYM have a monthly-return correlation of 0.35, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BBN and VYM?
BBN and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 694 unique securities.
Which pays a higher dividend, BBN or VYM?
BBN yields 7.16% while VYM yields 2.24%, so BBN currently pays the higher dividend yield.
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