BND vs VYM
Vanguard Total Bond Market ETF vs Vanguard High Dividend Yield ETF
Which is better, BND or VYM?
Intermediate Term Bond against Large Cap Value.
BND has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window.
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 | BND | VYM |
|---|---|---|
| Expense Ratio | 0.03%Best | 0.04% |
| AUM | $160.9B | $81.6B |
| Dividend Yield | 4.04% | 2.22% |
| Holdings | 17,437 | 613 |
| YTD Return | -1.23% | +11.35%Best |
| 1Y Return | -0.42% | +15.34%Best |
| 3Y Return (annualized) | +4.09% | +17.22%Best |
| 5Y Return (annualized) | -0.57% | +12.30%Best |
| Volatility (annualized) | 4.6%Best | 14.7% |
| Max Drawdown | -19.6%Best | -58.8% |
| $10,000 over 5 years | $9,718 | $17,861Best |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Fixed Income | Equity |
| Style | Intermediate Term Bond | Large Cap Value |
| Inception | Apr 3, 2007 | Nov 10, 2006 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Apr 10, 2007 to Sep 18, 2026 (19.4 years).
BND 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 is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.
BND vs VYM Performance
Vanguard Total Bond Market ETF (BND) is an ETF from Vanguard (US) and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year BND returned -0.42% while VYM returned +15.34%. Year to date, BND is down 1.23% versus a gain of 11.35% for VYM.
Over three years, BND compounded at +4.09% per year against +17.22% for VYM; over five years the annualized figures are -0.57% and +12.30% respectively. Across the full 19-year window we track, VYM has the edge at +6.75% annualized vs +0.63%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.7% compared with 4.6% for BND. 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 -19.6% for BND 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 0.23. They move largely independently of each other.
Fees and Cost Over Time
BND 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, BND currently yields 4.04% against 2.22% for VYM.
Holdings Overlap
At least 0.8% of VYM's money is in holdings BND also owns.
Stated as a floor: for BND, our book for it covers 1.5% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
We cannot see either book well enough to say how much of this pair is duplicated.
2 positions in common, counted across the 16 positions we hold weights for in BND and 557 in VYM, against full books of 17,437 and 613.
You are not choosing between two funds in isolation.
Whichever of BND 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, BND or VYM?
BND has an expense ratio of 0.03% while VYM charges 0.04%. BND is the cheaper option, by $1 a year on a $10,000 investment.
Which performed better, BND or VYM?
Over the past year BND returned -0.42% vs +15.34% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (19 years), BND annualized +0.63% vs +6.75% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, BND or VYM?
VYM has been the more volatile fund at 14.7% annualized versus 4.6% for BND. Worst drawdown: BND -19.6% vs VYM -58.8%.
Should I hold both BND and VYM?
BND and VYM have a monthly-return correlation of 0.23, 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, BND or VYM?
BND yields 4.04% while VYM yields 2.22%, so BND currently pays the higher dividend yield.
Is VYM better than BND?
BND has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.