BSMR vs VYM

BSMR vs VYM

Which is better, BSMR or VYM?

Municipal Bond against Large Cap Value.

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

MetricBSMRVYM
Expense Ratio0.18%0.04%Best
AUM$357M$81.6B
Dividend Yield2.71%2.22%
Holdings2,527613
YTD Return+0.62%+10.23%Best
1Y Return+1.14%+14.28%Best
3Y Return (annualized)+3.35%+17.50%Best
5Y Return (annualized)+0.35%+11.60%Best
Volatility (annualized)5.0%Best15.4%
Max Drawdown-13.6%Best-35.7%
$10,000 over 5 years$10,176$17,311Best
Fund FamilyInvesco (US)Vanguard (US)
CategoryFixed IncomeEquity
StyleMunicipal BondLarge Cap Value
InceptionSep 25, 2019Nov 10, 2006

Not shown on this pair: Top 10 Weight.

Volatility and max drawdown are measured over the window both funds cover: Sep 26, 2019 to Sep 23, 2026 (7 years).

BSMR 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.

BSMR vs VYM Performance

Invesco BulletShares 2027 Municipal Bond ETF (BSMR) is an ETF from Invesco (US) and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year BSMR returned +1.14% while VYM returned +14.28%. Year to date, BSMR is up 0.62% versus a gain of 10.23% for VYM.

Over three years, BSMR compounded at +3.35% per year against +17.50% for VYM; over five years the annualized figures are +0.35% and +11.60% respectively. Across the full 7-year window we track, VYM has the edge at +11.13% annualized vs +0.82%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VYM has been the more volatile fund, with annualized monthly volatility of 15.4% compared with 5.0% for BSMR. 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 BSMR 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 0.42. They move together some of the time, and apart the rest.

Fees and Cost Over Time

BSMR 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, BSMR currently yields 2.71% against 2.22% for VYM.

Holdings Overlap

We hold position weights for 544 holdings in BSMR and 557 in VYM, totalling 23.6% 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 544 positions we hold weights for in BSMR and 557 in VYM, against full books of 2,527 and 613.

You are not choosing between two funds in isolation.

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

BSMRVYM

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, BSMR or VYM?

BSMR has an expense ratio of 0.18% while VYM charges 0.04%. VYM is the cheaper option, by $14 a year on a $10,000 investment.

Which performed better, BSMR or VYM?

Over the past year BSMR returned +1.14% vs +14.28% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (7 years), BSMR annualized +0.82% vs +11.13% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, BSMR or VYM?

VYM has been the more volatile fund at 15.4% annualized versus 5.0% for BSMR. Worst drawdown: BSMR -13.6% vs VYM -35.7%.

Should I hold both BSMR and VYM?

BSMR and VYM have a monthly-return correlation of 0.42, 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, BSMR or VYM?

BSMR yields 2.71% while VYM yields 2.22%, so BSMR currently pays the higher dividend yield.

Is VYM better than BSMR?

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.