BHK vs VYM
BlackRock Core Bond Trust vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. BHK offers more diversification with 1,627 holdings.
Side-by-Side Comparison
| Metric | BHK | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 3.68% | 0.04% | |
| AUM | $677M | $81.6B | |
| Dividend Yield | 9.61% | 2.24% | |
| Holdings | 1,627 | 616 | |
| YTD Return | -0.02% | +14.66% | |
| 1Y Return | +2.89% | +22.16% | |
| 3Y Return (annualized) | +4.75% | +18.72% | |
| 5Y Return (annualized) | -3.83% | +12.18% | |
| Volatility (annualized) | 12.5% | 14.6% | |
| Max Drawdown | -45.8% | -58.8% | |
| Fund Family | BlackRock, Inc. (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Nov 30, 2001 | Nov 10, 2006 |
BHK vs VYM Performance
BlackRock Core Bond Trust (BHK) is a ETF from BlackRock, Inc. (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year BHK returned +2.89% while VYM returned +22.16%. Year to date, BHK is down 0.02% versus a gain of 14.66% for VYM.
Over three years, BHK compounded at +4.75% per year against +18.72% for VYM; over five years the annualized figures are -3.83% and +12.18% respectively. Across the full 20-year window we track, VYM has the edge at +7.01% annualized vs -0.24%. 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 12.5% for BHK. 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 -45.8% for BHK 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 0.40. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BHK charges 3.68% per year while VYM charges 0.04%. On a $10,000 position that is $368 vs $4 annually, a gap of $364 per year that compounds over a long holding period. On income, BHK currently yields 9.61% against 2.24% for VYM.
Holdings Overlap
BHK and VYM share 3 holdings out of 1663 unique holdings combined, representing a 0.8% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, BHK or VYM?
BHK has an expense ratio of 3.68% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $364 per year of difference.
Which performed better, BHK or VYM?
Over the past year BHK returned +2.89% vs +22.16% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), BHK annualized -0.24% vs +7.01% for VYM. Past performance does not guarantee future results.
Which is riskier, BHK or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 12.5% for BHK. Worst drawdown: BHK -45.8% vs VYM -58.8%.
Should I hold both BHK and VYM?
BHK and VYM have a monthly-return correlation of 0.40, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BHK and VYM?
BHK and VYM share 3 common holdings with a 0.8% weight overlap. Combined, they hold 1663 unique securities.
Which pays a higher dividend, BHK or VYM?
BHK yields 9.61% while VYM yields 2.24%, so BHK currently pays the higher dividend yield.
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