BYLD vs VYM
iShares Yield Optimized Bond ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. BYLD offers more diversification with 14906 holdings.
Side-by-Side Comparison
| Metric | BYLD | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.13% | 0.04% | |
| AUM | $448M | $79.0B | |
| Dividend Yield | 5.34% | 2.86% | |
| Holdings | 13 | 568 | |
| YTD Return | +0.57% | +16.53% | |
| 1Y Return | +3.60% | +25.03% | |
| 3Y Return (annualized) | +6.21% | +18.54% | |
| 5Y Return (annualized) | +1.90% | +12.25% | |
| Volatility (annualized) | 4.6% | 14.6% | |
| Max Drawdown | -15.9% | -58.8% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Apr 22, 2014 | Nov 10, 2006 |
BYLD vs VYM Performance
iShares Yield Optimized Bond ETF (BYLD) is a ETF from iShares by BlackRock (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year BYLD returned +3.60% while VYM returned +25.03%. Year to date, BYLD is up 0.57% versus a gain of 16.53% for VYM.
Over three years, BYLD compounded at +6.21% per year against +18.54% for VYM; over five years the annualized figures are +1.90% and +12.25% respectively. Across the full 12-year window we track, VYM has the edge at +7.10% annualized vs +0.95%. 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 4.6% for BYLD. 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 -15.9% for BYLD 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 0.57. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BYLD charges 0.13% per year while VYM charges 0.04%. On a $10,000 position that is $13 vs $4 annually, a gap of $9 per year that compounds over a long holding period. On income, BYLD currently yields 5.34% against 2.86% for VYM.
Holdings Overlap
BYLD and VYM share 6 holdings out of 15458 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, BYLD or VYM?
BYLD has an expense ratio of 0.13% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $9 per year of difference.
Which performed better, BYLD or VYM?
Over the past year BYLD returned +3.60% vs +25.03% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (12 years), BYLD annualized +0.95% vs +7.10% for VYM. Past performance does not guarantee future results.
Which is riskier, BYLD or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 4.6% for BYLD. Worst drawdown: BYLD -15.9% vs VYM -58.8%.
Should I hold both BYLD and VYM?
BYLD and VYM have a monthly-return correlation of 0.57, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BYLD and VYM?
BYLD and VYM share 6 common holdings with a 0.0% weight overlap. Combined, they hold 15458 unique securities.
Which pays a higher dividend, BYLD or VYM?
BYLD yields 5.34% while VYM yields 2.86%, so BYLD currently pays the higher dividend yield.
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