BCAT vs VYM
BlackRock Capital Allocation Term Trust vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. BCAT delivered stronger 1-year returns. BCAT offers more diversification with 917 holdings.
Side-by-Side Comparison
| Metric | BCAT | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 1.41% | 0.04% | |
| AUM | $1.6B | $81.6B | |
| Dividend Yield | 22.04% | 2.24% | |
| Holdings | 917 | 616 | |
| YTD Return | +26.01% | +15.75% | |
| 1Y Return | +31.02% | +23.85% | |
| 3Y Return (annualized) | +22.70% | +19.14% | |
| 5Y Return (annualized) | +9.16% | +12.45% | |
| Volatility (annualized) | 14.8% | 14.6% | |
| Max Drawdown | -36.1% | -58.8% | |
| Fund Family | BlackRock, Inc. (US) | Vanguard (US) | |
| Category | Allocation/Balanced | Equity | |
| Inception | Sep 25, 2020 | Nov 10, 2006 |
BCAT vs VYM Performance
BlackRock Capital Allocation Term Trust (BCAT) is a ETF from BlackRock, Inc. (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year BCAT returned +31.02% while VYM returned +23.85%. Year to date, BCAT is up 26.01% versus a gain of 15.75% for VYM.
Over three years, BCAT compounded at +22.70% per year against +19.14% for VYM; over five years the annualized figures are +9.16% and +12.45% respectively. Across the full 6-year window we track, BCAT has the edge at +9.23% annualized vs +7.06%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
BCAT has been the more volatile fund, with annualized monthly volatility of 14.8% compared with 14.6% 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 -36.1% for BCAT 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 0.70. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
BCAT charges 1.41% per year while VYM charges 0.04%. On a $10,000 position that is $141 vs $4 annually, a gap of $137 per year that compounds over a long holding period. On income, BCAT currently yields 22.04% against 2.24% for VYM.
Holdings Overlap
BCAT and VYM share 37 holdings out of 882 unique holdings combined, representing a 10.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, BCAT or VYM?
BCAT has an expense ratio of 1.41% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $137 per year of difference.
Which performed better, BCAT or VYM?
Over the past year BCAT returned +31.02% vs +23.85% for VYM, so BCAT leads on 1-year performance. Over the longest common window we track (6 years), BCAT annualized +9.23% vs +7.06% for VYM. Past performance does not guarantee future results.
Which is riskier, BCAT or VYM?
BCAT has been the more volatile fund at 14.8% annualized versus 14.6% for VYM. Worst drawdown: BCAT -36.1% vs VYM -58.8%.
Should I hold both BCAT and VYM?
BCAT and VYM have a monthly-return correlation of 0.70, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BCAT and VYM?
BCAT and VYM share 37 common holdings with a 10.1% weight overlap. Combined, they hold 882 unique securities.
Which pays a higher dividend, BCAT or VYM?
BCAT yields 22.04% while VYM yields 2.24%, so BCAT currently pays the higher dividend yield.
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