ETB vs VYM
Eaton Vance Tax-Managed Buy-Write Income Fund vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 616 holdings.
Side-by-Side Comparison
| Metric | ETB | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 1.12% | 0.04% | |
| AUM | $391M | $81.6B | |
| Dividend Yield | 7.49% | 2.24% | |
| Holdings | 156 | 616 | |
| YTD Return | +7.27% | +16.42% | |
| 1Y Return | +14.04% | +24.22% | |
| 3Y Return (annualized) | +14.58% | +19.03% | |
| 5Y Return (annualized) | +7.40% | +12.21% | |
| Volatility (annualized) | 17.3% | 14.6% | |
| Max Drawdown | -59.4% | -58.8% | |
| Fund Family | Eaton Vance | Vanguard (US) | |
| Category | Alternative | Equity | |
| Inception | Apr 27, 2005 | Nov 10, 2006 |
ETB vs VYM Performance
Eaton Vance Tax-Managed Buy-Write Income Fund (ETB) is a ETF from Eaton Vance and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year ETB returned +14.04% while VYM returned +24.22%. Year to date, ETB is up 7.27% versus a gain of 16.42% for VYM.
Over three years, ETB compounded at +14.58% per year against +19.03% for VYM; over five years the annualized figures are +7.40% and +12.21% respectively. Across the full 20-year window we track, VYM has the edge at +7.10% annualized vs +1.03%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
ETB has been the more volatile fund, with annualized monthly volatility of 17.3% 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 -59.4% for ETB 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 0.68. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
ETB 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, ETB currently yields 7.49% against 2.24% for VYM.
Holdings Overlap
ETB and VYM share 73 holdings out of 675 unique holdings combined, representing a 28.7% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, ETB or VYM?
ETB has an expense ratio of 1.12% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $108 per year of difference.
Which performed better, ETB or VYM?
Over the past year ETB returned +14.04% vs +24.22% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), ETB annualized +1.03% vs +7.10% for VYM. Past performance does not guarantee future results.
Which is riskier, ETB or VYM?
ETB has been the more volatile fund at 17.3% annualized versus 14.6% for VYM. Worst drawdown: ETB -59.4% vs VYM -58.8%.
Should I hold both ETB and VYM?
ETB and VYM have a monthly-return correlation of 0.68, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between ETB and VYM?
ETB and VYM share 73 common holdings with a 28.7% weight overlap. Combined, they hold 675 unique securities.
Which pays a higher dividend, ETB or VYM?
ETB yields 7.49% while VYM yields 2.24%, so ETB currently pays the higher dividend yield.
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