Quick Verdict

BLV has a lower expense ratio. VYM delivered stronger 1-year returns. BLV offers more diversification with 2765 holdings.

Lower Fees: BLVHigher Returns: VYMMore Diversified: BLV

Side-by-Side Comparison

MetricBLVVYMWinner
Expense Ratio0.03%0.04%
AUM$6.0B$79.0B
Dividend Yield4.72%2.86%
Holdings2,941568
YTD Return-2.09%+15.80%
1Y Return-0.26%+26.12%
3Y Return (annualized)+1.77%+18.25%
5Y Return (annualized)-4.77%+12.51%
Volatility (annualized)11.0%14.6%
Max Drawdown-40.7%-58.8%
Fund FamilyVanguard (US)Vanguard (US)
CategoryFixed IncomeEquity
InceptionApr 3, 2007Nov 10, 2006

BLV vs VYM Performance

Vanguard Long-Term Bond ETF (BLV) is a ETF from Vanguard (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year BLV returned -0.26% while VYM returned +26.12%. Year to date, BLV is down 2.09% versus a gain of 15.80% for VYM.

Over three years, BLV compounded at +1.77% per year against +18.25% for VYM; over five years the annualized figures are -4.77% and +12.51% respectively. Across the full 19-year window we track, VYM has the edge at +7.07% annualized vs +0.55%. 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 11.0% for BLV. 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 -40.7% for BLV 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 0.18. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

BLV charges 0.03% per year while VYM charges 0.04%. On a $10,000 position that is $3 vs $4 annually, a gap of $1 per year that compounds over a long holding period. On income, BLV currently yields 4.72% against 2.86% for VYM.

Holdings Overlap

0.0%overlap

BLV and VYM share 2 holdings out of 3321 unique holdings combined, representing a 0.0% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in BLVWeight in VYMDifference
DUK0.01%0.45%0.44%
RPRX0.03%0.08%0.05%

Frequently Asked Questions

Which is cheaper, BLV or VYM?

BLV has an expense ratio of 0.03% while VYM charges 0.04%. BLV is the cheaper option. On a $10,000 investment, that is $1 per year of difference.

Which performed better, BLV or VYM?

Over the past year BLV returned -0.26% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (19 years), BLV annualized +0.55% vs +7.07% for VYM. Past performance does not guarantee future results.

Which is riskier, BLV or VYM?

VYM has been the more volatile fund at 14.6% annualized versus 11.0% for BLV. Worst drawdown: BLV -40.7% vs VYM -58.8%.

Should I hold both BLV and VYM?

BLV and VYM have a monthly-return correlation of 0.18, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between BLV and VYM?

BLV and VYM share 2 common holdings with a 0.0% weight overlap. Combined, they hold 3321 unique securities.

Which pays a higher dividend, BLV or VYM?

BLV yields 4.72% while VYM yields 2.86%, so BLV currently pays the higher dividend yield.

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