BDJ vs VYM
Blackrock Enhanced Equity Dividend 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 558 holdings.
Side-by-Side Comparison
| Metric | BDJ | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.84% | 0.04% | |
| AUM | $1.8B | $79.0B | |
| Dividend Yield | 8.39% | 2.86% | |
| Holdings | 307 | 568 | |
| YTD Return | +8.90% | +15.80% | |
| 1Y Return | +21.83% | +26.12% | |
| 3Y Return (annualized) | +15.61% | +18.25% | |
| 5Y Return (annualized) | +9.12% | +12.51% | |
| Volatility (annualized) | 17.5% | 14.6% | |
| Max Drawdown | -67.3% | -58.8% | |
| Fund Family | BlackRock, Inc. (US) | Vanguard (US) | |
| Category | Alternative | Equity | |
| Inception | Aug 26, 2005 | Nov 10, 2006 |
BDJ vs VYM Performance
Blackrock Enhanced Equity Dividend Trust (BDJ) is a ETF from BlackRock, Inc. (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year BDJ returned +21.83% while VYM returned +26.12%. Year to date, BDJ is up 8.90% versus a gain of 15.80% for VYM.
Over three years, BDJ compounded at +15.61% per year against +18.25% for VYM; over five years the annualized figures are +9.12% and +12.51% respectively. Across the full 20-year window we track, VYM has the edge at +7.07% annualized vs +0.38%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
BDJ has been the more volatile fund, with annualized monthly volatility of 17.5% 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 -67.3% for BDJ 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 0.82. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
BDJ charges 0.84% per year while VYM charges 0.04%. On a $10,000 position that is $84 vs $4 annually, a gap of $80 per year that compounds over a long holding period. On income, BDJ currently yields 8.39% against 2.86% for VYM.
Holdings Overlap
BDJ and VYM share 43 holdings out of 600 unique holdings combined, representing a 18.8% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, BDJ or VYM?
BDJ has an expense ratio of 0.84% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $80 per year of difference.
Which performed better, BDJ or VYM?
Over the past year BDJ returned +21.83% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), BDJ annualized +0.38% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, BDJ or VYM?
BDJ has been the more volatile fund at 17.5% annualized versus 14.6% for VYM. Worst drawdown: BDJ -67.3% vs VYM -58.8%.
Should I hold both BDJ and VYM?
BDJ and VYM have a monthly-return correlation of 0.82, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BDJ and VYM?
BDJ and VYM share 43 common holdings with a 18.8% weight overlap. Combined, they hold 600 unique securities.
Which pays a higher dividend, BDJ or VYM?
BDJ yields 8.39% while VYM yields 2.86%, so BDJ currently pays the higher dividend yield.
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