BOND vs VYM

BOND vs VYM

Which is better, BOND or VYM?

VYM has been ahead.

VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window.

Lower Fees: VYMHigher Returns: VYM

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

MetricBONDVYM
Expense Ratio0.54%0.04%Best
AUM$8.5B$81.6B
Dividend Yield5.25%2.22%
Holdings1,761613
YTD Return-1.33%+11.35%Best
1Y Return-0.04%+15.34%Best
3Y Return (annualized)+5.00%+17.22%Best
5Y Return (annualized)-0.25%+12.30%Best
Volatility (annualized)5.0%Best13.1%
Max Drawdown-19.7%Best-35.7%
$10,000 over 5 years$9,876$17,861Best
Fund FamilyPIMCO (US)Vanguard (US)
CategoryFixed IncomeEquity
Style-Large Cap Value
InceptionFeb 29, 2012Nov 10, 2006

Not shown on this pair: Top 10 Weight.

Volatility and max drawdown are measured over the window both funds cover: Mar 1, 2012 to Sep 18, 2026 (14.5 years).

BOND 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.

BOND vs VYM Performance

PIMCO Active Bond Exchange-Traded Fund (BOND) is an ETF from PIMCO (US) and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year BOND returned -0.04% while VYM returned +15.34%. Year to date, BOND is down 1.33% versus a gain of 11.35% for VYM.

Over three years, BOND compounded at +5.00% per year against +17.22% for VYM; over five years the annualized figures are -0.25% and +12.30% respectively. Across the full 15-year window we track, VYM has the edge at +9.84% annualized vs +0.78%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VYM has been the more volatile fund, with annualized monthly volatility of 13.1% 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 -35.7% 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 0.38. They move together some of the time, and apart the rest.

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 5.25% against 2.22% for VYM.

Holdings Overlap

We hold position weights for 599 holdings in BOND and 557 in VYM, totalling 65.2% and 99.2% of the two funds. The two books name no position in common, so there is no overlap percentage to show.

0 positions in common, counted across the 599 positions we hold weights for in BOND and 557 in VYM, against full books of 1,761 and 613.

You are not choosing between two funds in isolation.

Whichever of BOND and VYM you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.

BONDVYM

Free for up to 10 holdings. No account needed.

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, by $50 a year on a $10,000 investment.

Which performed better, BOND or VYM?

Over the past year BOND returned -0.04% vs +15.34% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (15 years), BOND annualized +0.78% vs +9.84% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, BOND or VYM?

VYM has been the more volatile fund at 13.1% annualized versus 5.0% for BOND. Worst drawdown: BOND -19.7% vs VYM -35.7%.

Should I hold both BOND and VYM?

BOND and VYM have a monthly-return correlation of 0.38, 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, BOND or VYM?

BOND yields 5.25% while VYM yields 2.22%, so BOND currently pays the higher dividend yield.

Is VYM better than BOND?

VYM 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.