BSMW vs VYM

Quick Verdict

VYM has a lower expense ratio. VYM delivered stronger 1-year returns. BSMW offers more diversification with 1,769 holdings.

Lower Fees: VYMHigher Returns: VYMMore Diversified: BSMW

Side-by-Side Comparison

MetricBSMWVYMWinner
Expense Ratio0.18%0.04%
AUM$212M$79.0B
Dividend Yield3.19%2.86%
Holdings1,769568
YTD Return+0.76%+16.78%
1Y Return+4.82%+24.43%
3Y Return (annualized)+3.01%+18.60%
5Y Return (annualized)-+12.30%
Volatility (annualized)6.4%14.6%
Max Drawdown-7.6%-58.8%
Fund FamilyInvesco (US)Vanguard (US)
CategoryFixed IncomeEquity
InceptionMar 1, 2023Nov 10, 2006

BSMW vs VYM Performance

Invesco BulletShares 2032 Municipal Bond ETF (BSMW) is a ETF from Invesco (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year BSMW returned +4.82% while VYM returned +24.43%. Year to date, BSMW is up 0.76% versus a gain of 16.78% for VYM.

Over three years, BSMW compounded at +3.01% per year against +18.60% for VYM. Across the full 4-year window we track, VYM has the edge at +7.11% annualized vs +3.16%. 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 BSMW. 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 -7.6% for BSMW 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 0.67. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

BSMW 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, BSMW currently yields 3.19% against 2.86% for VYM.

Holdings Overlap

0.0%overlap

BSMW and VYM share 0 holdings out of 1142 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, BSMW or VYM?

BSMW 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, BSMW or VYM?

Over the past year BSMW returned +4.82% vs +24.43% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (4 years), BSMW annualized +3.16% vs +7.11% for VYM. Past performance does not guarantee future results.

Which is riskier, BSMW or VYM?

VYM has been the more volatile fund at 14.6% annualized versus 6.4% for BSMW. Worst drawdown: BSMW -7.6% vs VYM -58.8%.

Should I hold both BSMW and VYM?

BSMW and VYM have a monthly-return correlation of 0.67, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between BSMW and VYM?

BSMW and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1142 unique securities.

Which pays a higher dividend, BSMW or VYM?

BSMW yields 3.19% while VYM yields 2.86%, so BSMW currently pays the higher dividend yield.

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