BOND vs VYM
PIMCO Active Bond Exchange-Traded Fund vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. BOND offers more diversification with 1,944 holdings.
Side-by-Side Comparison
| Metric | BOND | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.54% | 0.04% | |
| AUM | $8.5B | $81.6B | |
| Dividend Yield | 5.23% | 2.24% | |
| Holdings | 1,944 | 616 | |
| YTD Return | +0.38% | +15.42% | |
| 1Y Return | +3.36% | +22.36% | |
| 3Y Return (annualized) | +5.52% | +19.06% | |
| 5Y Return (annualized) | +0.13% | +12.20% | |
| Volatility (annualized) | 5.0% | 14.6% | |
| Max Drawdown | -19.7% | -58.8% | |
| Fund Family | PIMCO (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Feb 29, 2012 | Nov 10, 2006 |
BOND vs VYM Performance
PIMCO Active Bond Exchange-Traded Fund (BOND) is a ETF from PIMCO (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year BOND returned +3.36% while VYM returned +22.36%. Year to date, BOND is up 0.38% versus a gain of 15.42% for VYM.
Over three years, BOND compounded at +5.52% per year against +19.06% for VYM; over five years the annualized figures are +0.13% and +12.20% respectively. Across the full 15-year window we track, VYM has the edge at +7.04% annualized vs +0.90%. 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 5.0% for BOND. 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 -19.7% for BOND 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 0.38. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BOND charges 0.54% per year while VYM charges 0.04%. On a $10,000 position that is $54 vs $4 annually, a gap of $50 per year that compounds over a long holding period. On income, BOND currently yields 5.23% against 2.24% for VYM.
Holdings Overlap
BOND and VYM share 0 holdings out of 1373 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, BOND or VYM?
BOND has an expense ratio of 0.54% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $50 per year of difference.
Which performed better, BOND or VYM?
Over the past year BOND returned +3.36% vs +22.36% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (15 years), BOND annualized +0.90% vs +7.04% for VYM. Past performance does not guarantee future results.
Which is riskier, BOND or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 5.0% for BOND. Worst drawdown: BOND -19.7% vs VYM -58.8%.
Should I hold both BOND and VYM?
BOND and VYM have a monthly-return correlation of 0.38, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BOND and VYM?
BOND and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1373 unique securities.
Which pays a higher dividend, BOND or VYM?
BOND yields 5.23% while VYM yields 2.24%, so BOND currently pays the higher dividend yield.
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