GBAB vs VYM
Guggenheim Taxable Municipal Bond & Investment Grade Debt Trust vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. GBAB offers more diversification with 636 holdings.
Side-by-Side Comparison
| Metric | GBAB | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 2.93% | 0.04% | |
| AUM | $394M | $81.6B | |
| Dividend Yield | 10.66% | 2.24% | |
| Holdings | 636 | 616 | |
| YTD Return | +0.10% | +14.66% | |
| 1Y Return | +1.43% | +22.16% | |
| 3Y Return (annualized) | +7.62% | +18.72% | |
| 5Y Return (annualized) | -2.45% | +12.18% | |
| Volatility (annualized) | 11.7% | 14.6% | |
| Max Drawdown | -35.8% | -58.8% | |
| Fund Family | Guggenheim Investments | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Oct 26, 2010 | Nov 10, 2006 |
GBAB vs VYM Performance
Guggenheim Taxable Municipal Bond & Investment Grade Debt Trust (GBAB) is a ETF from Guggenheim Investments and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year GBAB returned +1.43% while VYM returned +22.16%. Year to date, GBAB is up 0.10% versus a gain of 14.66% for VYM.
Over three years, GBAB compounded at +7.62% per year against +18.72% for VYM; over five years the annualized figures are -2.45% and +12.18% respectively. Across the full 16-year window we track, VYM has the edge at +7.01% annualized vs +0.77%. 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 11.7% for GBAB. 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 -35.8% for GBAB 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 0.32. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
GBAB charges 2.93% per year while VYM charges 0.04%. On a $10,000 position that is $293 vs $4 annually, a gap of $289 per year that compounds over a long holding period. On income, GBAB currently yields 10.66% against 2.24% for VYM.
Holdings Overlap
GBAB and VYM share 4 holdings out of 813 unique holdings combined, representing a 0.6% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, GBAB or VYM?
GBAB has an expense ratio of 2.93% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $289 per year of difference.
Which performed better, GBAB or VYM?
Over the past year GBAB returned +1.43% vs +22.16% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (16 years), GBAB annualized +0.77% vs +7.01% for VYM. Past performance does not guarantee future results.
Which is riskier, GBAB or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 11.7% for GBAB. Worst drawdown: GBAB -35.8% vs VYM -58.8%.
Should I hold both GBAB and VYM?
GBAB and VYM have a monthly-return correlation of 0.32, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between GBAB and VYM?
GBAB and VYM share 4 common holdings with a 0.6% weight overlap. Combined, they hold 813 unique securities.
Which pays a higher dividend, GBAB or VYM?
GBAB yields 10.66% while VYM yields 2.24%, so GBAB currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.