BMN vs VYM

Quick Verdict

VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.

Lower Fees: VYMHigher Returns: VYMMore Diversified: VYM

Side-by-Side Comparison

MetricBMNVYMWinner
Expense Ratio2.17%0.04%
AUM$156M$79.0B
Dividend Yield4.32%2.86%
Holdings170568
YTD Return-0.70%+16.10%
1Y Return+8.90%+25.99%
3Y Return (annualized)+5.28%+18.29%
5Y Return (annualized)-+12.35%
Volatility (annualized)9.5%14.6%
Max Drawdown-13.0%-58.8%
Fund FamilyBlackRock, Inc. (US)Vanguard (US)
CategoryFixed IncomeEquity
InceptionOct 26, 2022Nov 10, 2006

BMN vs VYM Performance

BlackRock 2037 Municipal Target Term Trust (BMN) is a ETF from BlackRock, Inc. (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year BMN returned +8.90% while VYM returned +25.99%. Year to date, BMN is down 0.70% versus a gain of 16.10% for VYM.

Over three years, BMN compounded at +5.28% per year against +18.29% for VYM. Across the full 4-year window we track, VYM has the edge at +7.08% annualized vs +4.44%. 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 9.5% for BMN. 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 -13.0% for BMN 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 0.52. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

BMN charges 2.17% per year while VYM charges 0.04%. On a $10,000 position that is $217 vs $4 annually, a gap of $213 per year that compounds over a long holding period. On income, BMN currently yields 4.32% against 2.86% for VYM.

Holdings Overlap

0.0%overlap

BMN and VYM share 0 holdings out of 621 unique holdings combined, representing a 0.0% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Frequently Asked Questions

Which is cheaper, BMN or VYM?

BMN has an expense ratio of 2.17% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $213 per year of difference.

Which performed better, BMN or VYM?

Over the past year BMN returned +8.90% vs +25.99% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (4 years), BMN annualized +4.44% vs +7.08% for VYM. Past performance does not guarantee future results.

Which is riskier, BMN or VYM?

VYM has been the more volatile fund at 14.6% annualized versus 9.5% for BMN. Worst drawdown: BMN -13.0% vs VYM -58.8%.

Should I hold both BMN and VYM?

BMN and VYM have a monthly-return correlation of 0.52, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between BMN and VYM?

BMN and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 621 unique securities.

Which pays a higher dividend, BMN or VYM?

BMN yields 4.32% while VYM yields 2.86%, so BMN currently pays the higher dividend yield.

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