BSMQ vs VYM
Invesco BulletShares 2026 Municipal Bond ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. BSMQ offers more diversification with 624 holdings.
Side-by-Side Comparison
| Metric | BSMQ | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.04% | |
| AUM | $271M | $79.0B | |
| Dividend Yield | 2.75% | 2.86% | |
| Holdings | 2,005 | 568 | |
| YTD Return | +1.25% | +16.78% | |
| 1Y Return | +2.76% | +24.43% | |
| 3Y Return (annualized) | +3.05% | +18.60% | |
| 5Y Return (annualized) | +0.28% | +12.30% | |
| Volatility (annualized) | 4.5% | 14.6% | |
| Max Drawdown | -13.6% | -58.8% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Sep 25, 2019 | Nov 10, 2006 |
BSMQ vs VYM Performance
Invesco BulletShares 2026 Municipal Bond ETF (BSMQ) is a ETF from Invesco (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year BSMQ returned +2.76% while VYM returned +24.43%. Year to date, BSMQ is up 1.25% versus a gain of 16.78% for VYM.
Over three years, BSMQ compounded at +3.05% per year against +18.60% for VYM; over five years the annualized figures are +0.28% and +12.30% respectively. Across the full 7-year window we track, VYM has the edge at +7.11% annualized vs +0.89%. 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 4.5% for BSMQ. 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 -13.6% for BSMQ 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 0.41. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BSMQ charges 0.18% per year while VYM charges 0.04%. On a $10,000 position that is $18 vs $4 annually, a gap of $14 per year that compounds over a long holding period. On income, BSMQ currently yields 2.75% against 2.86% for VYM.
Holdings Overlap
BSMQ and VYM share 0 holdings out of 1182 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, BSMQ or VYM?
BSMQ has an expense ratio of 0.18% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $14 per year of difference.
Which performed better, BSMQ or VYM?
Over the past year BSMQ returned +2.76% vs +24.43% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (7 years), BSMQ annualized +0.89% vs +7.11% for VYM. Past performance does not guarantee future results.
Which is riskier, BSMQ or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 4.5% for BSMQ. Worst drawdown: BSMQ -13.6% vs VYM -58.8%.
Should I hold both BSMQ and VYM?
BSMQ and VYM have a monthly-return correlation of 0.41, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BSMQ and VYM?
BSMQ and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1182 unique securities.
Which pays a higher dividend, BSMQ or VYM?
BSMQ yields 2.75% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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