BSMT vs VYM
Invesco BulletShares 2029 Municipal Bond ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | BSMT | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.04% | |
| AUM | $281M | $79.0B | |
| Dividend Yield | 2.74% | 2.86% | |
| Holdings | 1,790 | 568 | |
| YTD Return | +0.99% | +16.10% | |
| 1Y Return | +3.25% | +25.99% | |
| 3Y Return (annualized) | +3.11% | +18.29% | |
| 5Y Return (annualized) | -0.30% | +12.35% | |
| Volatility (annualized) | 6.4% | 14.6% | |
| Max Drawdown | -16.2% | -58.8% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Sep 25, 2019 | Nov 10, 2006 |
BSMT vs VYM Performance
Invesco BulletShares 2029 Municipal Bond ETF (BSMT) is a ETF from Invesco (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year BSMT returned +3.25% while VYM returned +25.99%. Year to date, BSMT is up 0.99% versus a gain of 16.10% for VYM.
Over three years, BSMT compounded at +3.11% per year against +18.29% for VYM; over five years the annualized figures are -0.30% and +12.35% respectively. Across the full 7-year window we track, VYM has the edge at +7.08% annualized vs +0.58%. 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 6.4% for BSMT. 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 -16.2% for BSMT 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 0.48. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BSMT 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, BSMT currently yields 2.74% against 2.86% for VYM.
Holdings Overlap
BSMT and VYM share 0 holdings out of 1067 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, BSMT or VYM?
BSMT 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, BSMT or VYM?
Over the past year BSMT returned +3.25% vs +25.99% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (7 years), BSMT annualized +0.58% vs +7.08% for VYM. Past performance does not guarantee future results.
Which is riskier, BSMT or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 6.4% for BSMT. Worst drawdown: BSMT -16.2% vs VYM -58.8%.
Should I hold both BSMT and VYM?
BSMT and VYM have a monthly-return correlation of 0.48, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BSMT and VYM?
BSMT and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1067 unique securities.
Which pays a higher dividend, BSMT or VYM?
BSMT yields 2.74% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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