BME vs VYM
BlackRock Health Sciences Trust vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. BME delivered stronger 1-year returns. VYM offers more diversification with 616 holdings.
Side-by-Side Comparison
| Metric | BME | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 1.14% | 0.04% | |
| AUM | $595M | $81.6B | |
| Dividend Yield | 7.05% | 2.24% | |
| Holdings | 156 | 616 | |
| YTD Return | +12.08% | +16.42% | |
| 1Y Return | +32.53% | +24.22% | |
| 3Y Return (annualized) | +10.85% | +19.03% | |
| 5Y Return (annualized) | +4.65% | +12.21% | |
| Volatility (annualized) | 17.1% | 14.6% | |
| Max Drawdown | -44.6% | -58.8% | |
| Fund Family | BlackRock, Inc. (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Mar 31, 2005 | Nov 10, 2006 |
BME vs VYM Performance
BlackRock Health Sciences Trust (BME) is a ETF from BlackRock, Inc. (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year BME returned +32.53% while VYM returned +24.22%. Year to date, BME is up 12.08% versus a gain of 16.42% for VYM.
Over three years, BME compounded at +10.85% per year against +19.03% for VYM; over five years the annualized figures are +4.65% and +12.21% respectively. Across the full 20-year window we track, VYM has the edge at +7.10% annualized vs +4.45%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
BME has been the more volatile fund, with annualized monthly volatility of 17.1% 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 -44.6% for BME 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 0.65. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BME charges 1.14% per year while VYM charges 0.04%. On a $10,000 position that is $114 vs $4 annually, a gap of $110 per year that compounds over a long holding period. On income, BME currently yields 7.05% against 2.24% for VYM.
Holdings Overlap
BME and VYM share 13 holdings out of 727 unique holdings combined, representing a 11.6% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, BME or VYM?
BME has an expense ratio of 1.14% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $110 per year of difference.
Which performed better, BME or VYM?
Over the past year BME returned +32.53% vs +24.22% for VYM, so BME leads on 1-year performance. Over the longest common window we track (20 years), BME annualized +4.45% vs +7.10% for VYM. Past performance does not guarantee future results.
Which is riskier, BME or VYM?
BME has been the more volatile fund at 17.1% annualized versus 14.6% for VYM. Worst drawdown: BME -44.6% vs VYM -58.8%.
Should I hold both BME and VYM?
BME and VYM have a monthly-return correlation of 0.65, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BME and VYM?
BME and VYM share 13 common holdings with a 11.6% weight overlap. Combined, they hold 727 unique securities.
Which pays a higher dividend, BME or VYM?
BME yields 7.05% while VYM yields 2.24%, so BME currently pays the higher dividend yield.
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