BLW vs VYM
BlackRock Limited Duration Income Trust vs Vanguard High Dividend Yield ETF
Which is better, BLW or VYM?
Short Term High Yield Bond against Large Cap Value.
VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window. BLW is less concentrated, with 8.3% of the fund in its ten largest positions against 25.9%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | BLW | VYM |
|---|---|---|
| Expense Ratio | 4.48% | 0.04%Best |
| AUM | $515M | $81.6B |
| Dividend Yield | 10.33% | 2.24% |
| Holdings | 2,073 | 613 |
| YTD Return | -1.84% | +14.82%Best |
| 1Y Return | -1.96% | +20.84%Best |
| 3Y Return (annualized) | +8.40% | +18.64%Best |
| 5Y Return (annualized) | +2.93% | +12.28%Best |
| Volatility (annualized) | 12.5%Best | 14.5% |
| Max Drawdown | -51.9%Best | -58.8% |
| $10,000 over 5 years | $11,553 | $17,845Best |
| Top 10 Weight | 8.3%Best | 25.9% |
| Fund Family | BlackRock, Inc. (US) | Vanguard (US) |
| Category | Fixed Income | Equity |
| Style | Short Term High Yield Bond | Large Cap Value |
| Inception | Jul 31, 2003 | Nov 10, 2006 |
Volatility and max drawdown are measured over the window both funds cover: Nov 16, 2006 to Sep 4, 2026 (19.8 years).
BLW vs VYM growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 19.8 years both funds cover.
BLW vs VYM Performance
BlackRock Limited Duration Income Trust (BLW) is an ETF from BlackRock, Inc. (US) and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year BLW returned -1.96% while VYM returned +20.84%. Year to date, BLW is down 1.84% versus a gain of 14.82% for VYM.
Over three years, BLW compounded at +8.40% per year against +18.64% for VYM; over five years the annualized figures are +2.93% and +12.28% respectively. Across the full 20-year window we track, VYM has the edge at +7.00% 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 14.5% compared with 12.5% 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 -51.9% for BLW and -58.8% for VYM. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.59. They move together some of the time, and apart the rest.
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
We hold position weights for 997 holdings in BLW and 602 in VYM, totalling 102.8% and 99.5% of the two funds. That is not enough of VYM to divide by, so no overlap percentage is shown here. Within what we can see, 1 positions appear in both.
The two holdings books were reported 181 days apart, BLW as of Dec 31, 2025 and VYM as of Jun 30, 2026, so some of the difference between them is the time between the two reports rather than the funds.
1 positions in common, counted across the 997 positions we hold weights for in BLW and 602 in VYM, against full books of 2,073 and 613.
What only one of them owns
Our book lists 568 positions for VYM that do not appear in our book for BLW (97.2% of the fund), and 968 for BLW that do not appear in VYM (102.8%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in BLW | Weight in VYM | Difference |
|---|---|---|---|
| AFGAmerican Financial Group Inc/Oh | 0.00% | 0.04% | 0.04% |
You are not choosing between two funds in isolation.
Whichever of BLW and VYM you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
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, by $444 a year on a $10,000 investment.
Which performed better, BLW or VYM?
Over the past year BLW returned -1.96% vs +20.84% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), BLW annualized +0.55% vs +7.00% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, BLW or VYM?
VYM has been the more volatile fund at 14.5% annualized versus 12.5% for BLW. Worst drawdown: BLW -51.9% vs VYM -58.8%.
Should I hold both BLW and VYM?
BLW and VYM have a monthly-return correlation of 0.59, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
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.
Is VYM better than BLW?
VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window. BLW is less concentrated, with 8.3% of the fund in its ten largest positions against 25.9%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.