BGY 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

MetricBGYVYMWinner
Expense Ratio0.99%0.04%
AUM$568M$79.0B
Dividend Yield8.00%2.86%
Holdings127568
YTD Return+4.89%+16.53%
1Y Return+11.48%+25.03%
3Y Return (annualized)+12.46%+18.54%
5Y Return (annualized)+6.47%+12.25%
Volatility (annualized)19.1%14.6%
Max Drawdown-80.9%-58.8%
Fund FamilyBlackRock, Inc. (US)Vanguard (US)
CategoryEquityEquity
InceptionMay 25, 2007Nov 10, 2006

BGY vs VYM Performance

BlackRock Enhanced International Dividend Trust (BGY) is a ETF from BlackRock, Inc. (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year BGY returned +11.48% while VYM returned +25.03%. Year to date, BGY is up 4.89% versus a gain of 16.53% for VYM.

Over three years, BGY compounded at +12.46% per year against +18.54% for VYM; over five years the annualized figures are +6.47% and +12.25% respectively. Across the full 19-year window we track, VYM has the edge at +7.10% annualized vs -4.05%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

BGY has been the more volatile fund, with annualized monthly volatility of 19.1% 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 -80.9% for BGY 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 0.73. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

BGY charges 0.99% per year while VYM charges 0.04%. On a $10,000 position that is $99 vs $4 annually, a gap of $95 per year that compounds over a long holding period. On income, BGY currently yields 8.00% against 2.86% for VYM.

Holdings Overlap

0.1%overlap

BGY and VYM share 1 holdings out of 605 unique holdings combined, representing a 0.1% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in BGYWeight in VYMDifference
DTEG.N:BE2.53%0.13%2.40%

Frequently Asked Questions

Which is cheaper, BGY or VYM?

BGY has an expense ratio of 0.99% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $95 per year of difference.

Which performed better, BGY or VYM?

Over the past year BGY returned +11.48% vs +25.03% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (19 years), BGY annualized -4.05% vs +7.10% for VYM. Past performance does not guarantee future results.

Which is riskier, BGY or VYM?

BGY has been the more volatile fund at 19.1% annualized versus 14.6% for VYM. Worst drawdown: BGY -80.9% vs VYM -58.8%.

Should I hold both BGY and VYM?

BGY and VYM have a monthly-return correlation of 0.73, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between BGY and VYM?

BGY and VYM share 1 common holdings with a 0.1% weight overlap. Combined, they hold 605 unique securities.

Which pays a higher dividend, BGY or VYM?

BGY yields 8.00% while VYM yields 2.86%, so BGY currently pays the higher dividend yield.

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