BSCQ 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

MetricBSCQVYMWinner
Expense Ratio0.10%0.04%
AUM$3.6B$79.0B
Dividend Yield4.10%2.86%
Holdings194568
YTD Return+2.25%+16.16%
1Y Return+4.14%+26.05%
3Y Return (annualized)+5.34%+18.43%
5Y Return (annualized)+1.57%+12.21%
Volatility (annualized)4.7%14.6%
Max Drawdown-16.5%-58.8%
Fund FamilyInvesco (US)Vanguard (US)
CategoryFixed IncomeEquity
InceptionSep 13, 2016Nov 10, 2006

BSCQ vs VYM Performance

Invesco BulletShares 2026 Corporate Bond ETF (BSCQ) is a ETF from Invesco (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year BSCQ returned +4.14% while VYM returned +26.05%. Year to date, BSCQ is up 2.25% versus a gain of 16.16% for VYM.

Over three years, BSCQ compounded at +5.34% per year against +18.43% for VYM; over five years the annualized figures are +1.57% and +12.21% respectively. Across the full 10-year window we track, VYM has the edge at +7.09% annualized vs +1.60%. 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 4.7% for BSCQ. 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 -16.5% for BSCQ 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 0.42. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

BSCQ charges 0.10% per year while VYM charges 0.04%. On a $10,000 position that is $10 vs $4 annually, a gap of $6 per year that compounds over a long holding period. On income, BSCQ currently yields 4.10% against 2.86% for VYM.

Holdings Overlap

0.0%overlap

BSCQ and VYM share 0 holdings out of 801 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, BSCQ or VYM?

BSCQ has an expense ratio of 0.10% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $6 per year of difference.

Which performed better, BSCQ or VYM?

Over the past year BSCQ returned +4.14% vs +26.05% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (10 years), BSCQ annualized +1.60% vs +7.09% for VYM. Past performance does not guarantee future results.

Which is riskier, BSCQ or VYM?

VYM has been the more volatile fund at 14.6% annualized versus 4.7% for BSCQ. Worst drawdown: BSCQ -16.5% vs VYM -58.8%.

Should I hold both BSCQ and VYM?

BSCQ and VYM have a monthly-return correlation of 0.42, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between BSCQ and VYM?

BSCQ and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 801 unique securities.

Which pays a higher dividend, BSCQ or VYM?

BSCQ yields 4.10% while VYM yields 2.86%, so BSCQ currently pays the higher dividend yield.

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