BDEC 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

MetricBDECVYMWinner
Expense Ratio0.79%0.04%
AUM$218M$79.0B
Dividend Yield0.00%2.86%
Holdings6568
YTD Return+10.14%+15.80%
1Y Return+19.10%+26.12%
3Y Return (annualized)+14.28%+18.25%
5Y Return (annualized)+10.26%+12.51%
Volatility (annualized)12.0%14.6%
Max Drawdown-25.6%-58.8%
Fund FamilyInnovator ETFs TrustVanguard (US)
CategoryAlternativeEquity
InceptionNov 29, 2019Nov 10, 2006

BDEC vs VYM Performance

Innovator US Equity Buffer ETF - December (BDEC) is a ETF from Innovator ETFs Trust and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year BDEC returned +19.10% while VYM returned +26.12%. Year to date, BDEC is up 10.14% versus a gain of 15.80% for VYM.

Over three years, BDEC compounded at +14.28% per year against +18.25% for VYM; over five years the annualized figures are +10.26% and +12.51% respectively. Across the full 7-year window we track, BDEC has the edge at +11.56% annualized vs +7.07%. 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 12.0% for BDEC. 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 -25.6% for BDEC 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 0.86. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

BDEC charges 0.79% per year while VYM charges 0.04%. On a $10,000 position that is $79 vs $4 annually, a gap of $75 per year that compounds over a long holding period. On income, BDEC currently yields 0.00% against 2.86% for VYM.

Frequently Asked Questions

Which is cheaper, BDEC or VYM?

BDEC has an expense ratio of 0.79% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $75 per year of difference.

Which performed better, BDEC or VYM?

Over the past year BDEC returned +19.10% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (7 years), BDEC annualized +11.56% vs +7.07% for VYM. Past performance does not guarantee future results.

Which is riskier, BDEC or VYM?

VYM has been the more volatile fund at 14.6% annualized versus 12.0% for BDEC. Worst drawdown: BDEC -25.6% vs VYM -58.8%.

Should I hold both BDEC and VYM?

BDEC and VYM have a monthly-return correlation of 0.86, so combining them can provide real diversification depending on your allocation goals.

Which pays a higher dividend, BDEC or VYM?

BDEC yields 0.00% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.

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