BSMU 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

MetricBSMUVYMWinner
Expense Ratio0.18%0.04%
AUM$275M$79.0B
Dividend Yield2.79%2.86%
Holdings1,653568
YTD Return+0.67%+16.78%
1Y Return+3.28%+24.43%
3Y Return (annualized)+3.02%+18.60%
5Y Return (annualized)-0.74%+12.30%
Volatility (annualized)7.2%14.6%
Max Drawdown-19.5%-58.8%
Fund FamilyInvesco (US)Vanguard (US)
CategoryFixed IncomeEquity
InceptionSep 16, 2020Nov 10, 2006

BSMU vs VYM Performance

Invesco BulletShares 2030 Municipal Bond ETF (BSMU) is a ETF from Invesco (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year BSMU returned +3.28% while VYM returned +24.43%. Year to date, BSMU is up 0.67% versus a gain of 16.78% for VYM.

Over three years, BSMU compounded at +3.02% per year against +18.60% for VYM; over five years the annualized figures are -0.74% and +12.30% respectively. Across the full 6-year window we track, VYM has the edge at +7.11% annualized vs +0.26%. 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 7.2% for BSMU. 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 -19.5% for BSMU 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 0.54. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

BSMU 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, BSMU currently yields 2.79% against 2.86% for VYM.

Holdings Overlap

0.0%overlap

BSMU and VYM share 0 holdings out of 1061 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, BSMU or VYM?

BSMU 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, BSMU or VYM?

Over the past year BSMU returned +3.28% vs +24.43% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (6 years), BSMU annualized +0.26% vs +7.11% for VYM. Past performance does not guarantee future results.

Which is riskier, BSMU or VYM?

VYM has been the more volatile fund at 14.6% annualized versus 7.2% for BSMU. Worst drawdown: BSMU -19.5% vs VYM -58.8%.

Should I hold both BSMU and VYM?

BSMU and VYM have a monthly-return correlation of 0.54, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between BSMU and VYM?

BSMU and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1061 unique securities.

Which pays a higher dividend, BSMU or VYM?

BSMU yields 2.79% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.

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