BGR vs VYM

Quick Verdict

VYM has a lower expense ratio. BGR delivered stronger 1-year returns. VYM offers more diversification with 616 holdings.

Lower Fees: VYMHigher Returns: BGRMore Diversified: VYM

Side-by-Side Comparison

MetricBGRVYMWinner
Expense Ratio1.11%0.04%
AUM$473M$81.6B
Dividend Yield6.42%2.24%
Holdings30616
YTD Return+27.08%+16.42%
1Y Return+35.26%+24.22%
3Y Return (annualized)+18.73%+19.03%
5Y Return (annualized)+21.67%+12.21%
Volatility (annualized)25.6%14.6%
Max Drawdown-87.7%-58.8%
Fund FamilyBlackRock, Inc. (US)Vanguard (US)
CategoryEquityEquity
InceptionDec 23, 2004Nov 10, 2006

BGR vs VYM Performance

BlackRock Energy and Resources Trust (BGR) is a ETF from BlackRock, Inc. (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year BGR returned +35.26% while VYM returned +24.22%. Year to date, BGR is up 27.08% versus a gain of 16.42% for VYM.

Over three years, BGR compounded at +18.73% per year against +19.03% for VYM; over five years the annualized figures are +21.67% and +12.21% respectively. Across the full 20-year window we track, VYM has the edge at +7.10% annualized vs -0.18%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

BGR has been the more volatile fund, with annualized monthly volatility of 25.6% 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 -87.7% for BGR 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 0.64. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

BGR charges 1.11% per year while VYM charges 0.04%. On a $10,000 position that is $111 vs $4 annually, a gap of $107 per year that compounds over a long holding period. On income, BGR currently yields 6.42% against 2.24% for VYM.

Holdings Overlap

5.9%overlap

BGR and VYM share 12 holdings out of 621 unique holdings combined, representing a 5.9% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in BGRWeight in VYMDifference
XOM20.21%2.36%17.85%
CVX11.46%1.28%10.18%
COP4.65%0.53%4.12%
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Frequently Asked Questions

Which is cheaper, BGR or VYM?

BGR has an expense ratio of 1.11% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $107 per year of difference.

Which performed better, BGR or VYM?

Over the past year BGR returned +35.26% vs +24.22% for VYM, so BGR leads on 1-year performance. Over the longest common window we track (20 years), BGR annualized -0.18% vs +7.10% for VYM. Past performance does not guarantee future results.

Which is riskier, BGR or VYM?

BGR has been the more volatile fund at 25.6% annualized versus 14.6% for VYM. Worst drawdown: BGR -87.7% vs VYM -58.8%.

Should I hold both BGR and VYM?

BGR and VYM have a monthly-return correlation of 0.64, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between BGR and VYM?

BGR and VYM share 12 common holdings with a 5.9% weight overlap. Combined, they hold 621 unique securities.

Which pays a higher dividend, BGR or VYM?

BGR yields 6.42% while VYM yields 2.24%, so BGR currently pays the higher dividend yield.

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