EAGG vs VYM
iShares ESG Aware US Aggregate Bond ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. EAGG offers more diversification with 5,131 holdings.
Side-by-Side Comparison
| Metric | EAGG | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.10% | 0.04% | |
| AUM | $5.0B | $81.6B | |
| Dividend Yield | 4.05% | 2.24% | |
| Holdings | 5,131 | 616 | |
| YTD Return | +0.43% | +15.25% | |
| 1Y Return | +2.70% | +22.18% | |
| 3Y Return (annualized) | +4.34% | +18.83% | |
| 5Y Return (annualized) | -0.27% | +12.09% | |
| Volatility (annualized) | 5.6% | 14.6% | |
| Max Drawdown | -19.4% | -58.8% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Oct 18, 2018 | Nov 10, 2006 |
EAGG vs VYM Performance
iShares ESG Aware US Aggregate Bond ETF (EAGG) 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 EAGG returned +2.70% while VYM returned +22.18%. Year to date, EAGG is up 0.43% versus a gain of 15.25% for VYM.
Over three years, EAGG compounded at +4.34% per year against +18.83% for VYM; over five years the annualized figures are -0.27% and +12.09% respectively. Across the full 8-year window we track, VYM has the edge at +7.03% annualized vs +1.23%. 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 5.6% for EAGG. 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 -19.4% for EAGG 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 0.33. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
EAGG charges 0.10% per year while VYM charges 0.04%. On a $10,000 position that is $10 vs $4 annually, a gap of $6 per year that compounds over a long holding period. On income, EAGG currently yields 4.05% against 2.24% for VYM.
Holdings Overlap
EAGG and VYM share 5 holdings out of 5176 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in EAGG | Weight in VYM | Difference |
|---|---|---|---|
| MMC 4.75 03/15/39 | 0.00% | 0.33% | 0.33% |
| HUM 4.625 12/01/42 | 0.00% | 0.20% | 0.20% |
| ZTS 3 09/12/27 | 0.05% | 0.13% | 0.08% |
| ADM | Pro | Pro | Pro |
| HUBB | Pro | Pro | Pro |
Frequently Asked Questions
Which is cheaper, EAGG or VYM?
EAGG has an expense ratio of 0.10% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $6 per year of difference.
Which performed better, EAGG or VYM?
Over the past year EAGG returned +2.70% vs +22.18% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (8 years), EAGG annualized +1.23% vs +7.03% for VYM. Past performance does not guarantee future results.
Which is riskier, EAGG or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 5.6% for EAGG. Worst drawdown: EAGG -19.4% vs VYM -58.8%.
Should I hold both EAGG and VYM?
EAGG and VYM have a monthly-return correlation of 0.33, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between EAGG and VYM?
EAGG and VYM share 5 common holdings with a 0.1% weight overlap. Combined, they hold 5176 unique securities.
Which pays a higher dividend, EAGG or VYM?
EAGG yields 4.05% while VYM yields 2.24%, so EAGG currently pays the higher dividend yield.
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