BSMY vs VYM
Invesco BulletShares 2034 Municipal Bond ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. BSMY offers more diversification with 1,925 holdings.
Side-by-Side Comparison
| Metric | BSMY | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.04% | |
| AUM | $140M | $81.6B | |
| Dividend Yield | 3.62% | 2.24% | |
| Holdings | 1,925 | 616 | |
| YTD Return | -0.27% | +14.66% | |
| 1Y Return | +5.25% | +22.16% | |
| 3Y Return (annualized) | - | +18.72% | |
| 5Y Return (annualized) | - | +12.18% | |
| Volatility (annualized) | 5.8% | 14.6% | |
| Max Drawdown | -6.8% | -58.8% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Sep 11, 2024 | Nov 10, 2006 |
BSMY vs VYM Performance
Invesco BulletShares 2034 Municipal Bond ETF (BSMY) is a ETF from Invesco (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year BSMY returned +5.25% while VYM returned +22.16%. Year to date, BSMY is down 0.27% versus a gain of 14.66% for VYM.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 5.8% for BSMY. 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 -6.8% for BSMY 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 0.64. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BSMY 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, BSMY currently yields 3.62% against 2.24% for VYM.
Holdings Overlap
BSMY and VYM share 0 holdings out of 1150 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, BSMY or VYM?
BSMY 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, BSMY or VYM?
Over the past year BSMY returned +5.25% vs +22.16% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (2 years), BSMY annualized +0.93% vs +7.01% for VYM. Past performance does not guarantee future results.
Which is riskier, BSMY or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 5.8% for BSMY. Worst drawdown: BSMY -6.8% vs VYM -58.8%.
Should I hold both BSMY and VYM?
BSMY and VYM have a monthly-return correlation of 0.64, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BSMY and VYM?
BSMY and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1150 unique securities.
Which pays a higher dividend, BSMY or VYM?
BSMY yields 3.62% while VYM yields 2.24%, so BSMY currently pays the higher dividend yield.
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