BTZ vs VYM
BlackRock Credit Allocation Income Trust vs Vanguard High Dividend Yield ETF
Which is better, BTZ or VYM?
VYM has been ahead.
VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window.
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
| Metric | BTZ | VYM |
|---|---|---|
| Expense Ratio | 1.12% | 0.04%Best |
| AUM | $1.0B | $81.6B |
| Dividend Yield | 9.35% | 2.24% |
| Holdings | 2,036 | 613 |
| YTD Return | -1.29% | +15.29%Best |
| 1Y Return | +0.00% | +22.23%Best |
| 3Y Return (annualized) | +9.36% | +18.81%Best |
| 5Y Return (annualized) | +0.67% | +12.14%Best |
| Volatility (annualized) | 18.2% | 14.6%Best |
| Max Drawdown | -80.2% | -58.8%Best |
| $10,000 over 5 years | $10,340 | $17,734Best |
| Fund Family | BlackRock, Inc. (US) | Vanguard (US) |
| Category | Fixed Income | Equity |
| Style | - | Large Cap Value |
| Inception | Dec 27, 2006 | Nov 10, 2006 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Dec 22, 2006 to Sep 3, 2026 (19.7 years).
BTZ 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 covers the 19.7 years both funds cover.
BTZ vs VYM Performance
BlackRock Credit Allocation Income Trust (BTZ) is an ETF from BlackRock, Inc. (US) and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year BTZ returned +0.00% while VYM returned +22.23%. Year to date, BTZ is down 1.29% versus a gain of 15.29% for VYM.
Over three years, BTZ compounded at +9.36% per year against +18.81% for VYM; over five years the annualized figures are +0.67% and +12.14% respectively. Across the full 20-year window we track, VYM has the edge at +6.96% annualized vs -2.11%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
BTZ has been the more volatile fund, with annualized monthly volatility of 18.2% compared with 14.6% for VYM. 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 -80.2% for BTZ and -58.8% 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 0.63. They move together some of the time, and apart the rest.
Fees and Cost Over Time
BTZ charges 1.12% per year while VYM charges 0.04%. On a $10,000 position that is $112 vs $4 annually, a gap of $108 per year that compounds over a long holding period. On income, BTZ currently yields 9.35% against 2.24% for VYM.
Holdings Overlap
We hold position weights for 1,141 holdings in BTZ and 603 in VYM, totalling 114.9% and 99.5% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
The two holdings books were reported 181 days apart, BTZ as of Dec 31, 2025 and VYM as of Jun 30, 2026, so some of the difference between them is the time between the two reports rather than the funds.
0 positions in common, counted across the 1,141 positions we hold weights for in BTZ and 603 in VYM, against full books of 2,036 and 613.
You are not choosing between two funds in isolation.
Whichever of BTZ and VYM you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, BTZ or VYM?
BTZ has an expense ratio of 1.12% while VYM charges 0.04%. VYM is the cheaper option, by $108 a year on a $10,000 investment.
Which performed better, BTZ or VYM?
Over the past year BTZ returned +0.00% vs +22.23% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), BTZ annualized -2.11% vs +6.96% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, BTZ or VYM?
BTZ has been the more volatile fund at 18.2% annualized versus 14.6% for VYM. Worst drawdown: BTZ -80.2% vs VYM -58.8%.
Should I hold both BTZ and VYM?
BTZ and VYM have a monthly-return correlation of 0.63, 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, BTZ or VYM?
BTZ yields 9.35% while VYM yields 2.24%, so BTZ currently pays the higher dividend yield.
Is VYM better than BTZ?
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.