BLW vs VYM
BlackRock Limited Duration Income Trust vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. BLW offers more diversification with 2,073 holdings.
Side-by-Side Comparison
| Metric | BLW | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 4.48% | 0.04% | |
| AUM | $520M | $81.6B | |
| Dividend Yield | 10.33% | 2.24% | |
| Holdings | 2,073 | 616 | |
| YTD Return | -0.36% | +15.75% | |
| 1Y Return | +0.52% | +23.85% | |
| 3Y Return (annualized) | +9.40% | +19.14% | |
| 5Y Return (annualized) | +3.57% | +12.45% | |
| Volatility (annualized) | 12.1% | 14.6% | |
| Max Drawdown | -53.5% | -58.8% | |
| Fund Family | BlackRock, Inc. (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jul 31, 2003 | Nov 10, 2006 |
BLW vs VYM Performance
BlackRock Limited Duration Income Trust (BLW) is a ETF from BlackRock, Inc. (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year BLW returned +0.52% while VYM returned +23.85%. Year to date, BLW is down 0.36% versus a gain of 15.75% for VYM.
Over three years, BLW compounded at +9.40% per year against +19.14% for VYM; over five years the annualized figures are +3.57% and +12.45% respectively. Across the full 20-year window we track, VYM has the edge at +7.06% annualized vs +0.23%. 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 12.1% for BLW. 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 -53.5% for BLW 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 0.59. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BLW charges 4.48% per year while VYM charges 0.04%. On a $10,000 position that is $448 vs $4 annually, a gap of $444 per year that compounds over a long holding period. On income, BLW currently yields 10.33% against 2.24% for VYM.
Holdings Overlap
BLW and VYM share 1 holdings out of 1599 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in BLW | Weight in VYM | Difference |
|---|---|---|---|
| AFG | 0.00% | 0.04% | 0.04% |
Frequently Asked Questions
Which is cheaper, BLW or VYM?
BLW has an expense ratio of 4.48% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $444 per year of difference.
Which performed better, BLW or VYM?
Over the past year BLW returned +0.52% vs +23.85% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), BLW annualized +0.23% vs +7.06% for VYM. Past performance does not guarantee future results.
Which is riskier, BLW or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 12.1% for BLW. Worst drawdown: BLW -53.5% vs VYM -58.8%.
Should I hold both BLW and VYM?
BLW and VYM have a monthly-return correlation of 0.59, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BLW and VYM?
BLW and VYM share 1 common holdings with a 0.0% weight overlap. Combined, they hold 1599 unique securities.
Which pays a higher dividend, BLW or VYM?
BLW yields 10.33% while VYM yields 2.24%, so BLW currently pays the higher dividend yield.
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