HYBB vs VYM
iShares BB Rated Corporate Bond ETF vs Vanguard High Dividend Yield ETF
Which is better, HYBB or VYM?
High Yield Bond against Large Cap Value.
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 | HYBB | VYM |
|---|---|---|
| Expense Ratio | 0.25% | 0.04%Best |
| AUM | $319M | $81.6B |
| Dividend Yield | 5.31% | 2.22% |
| Holdings | 1,074 | 613 |
| YTD Return | +1.01% | +13.15%Best |
| 1Y Return | +2.91% | +17.82%Best |
| 3Y Return (annualized) | +7.25% | +17.99%Best |
| 5Y Return (annualized) | +2.93% | +12.16%Best |
| Volatility (annualized) | 6.9%Best | 13.9% |
| Max Drawdown | -15.3%Best | -15.8% |
| $10,000 over 5 years | $11,553 | $17,750Best |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) |
| Category | Fixed Income | Equity |
| Style | High Yield Bond | Large Cap Value |
| Inception | Oct 6, 2020 | Nov 10, 2006 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Oct 8, 2020 to Sep 10, 2026 (5.9 years).
HYBB 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 5.9 years both funds cover.
HYBB vs VYM Performance
iShares BB Rated Corporate Bond ETF (HYBB) is an ETF from iShares by BlackRock (US) and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year HYBB returned +2.91% while VYM returned +17.82%. Year to date, HYBB is up 1.01% versus a gain of 13.15% for VYM.
Over three years, HYBB compounded at +7.25% per year against +17.99% for VYM; over five years the annualized figures are +2.93% and +12.16% respectively. Across the full 6-year window we track, VYM has the edge at +14.75% annualized vs +3.60%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 13.9% compared with 6.9% for HYBB. 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 -15.3% for HYBB and -15.8% 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 0.73. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
HYBB charges 0.25% per year while VYM charges 0.04%. On a $10,000 position that is $25 vs $4 annually, a gap of $21 per year that compounds over a long holding period. On income, HYBB currently yields 5.31% against 2.22% for VYM.
Holdings Overlap
At least 0.1% of VYM's money is in holdings HYBB also owns.
Stated as a floor: for HYBB, our book for it covers 65.0% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
We cannot see either book well enough to say how much of this pair is duplicated.
The two holdings books were reported 62 days apart, HYBB as of Aug 31, 2026 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.
2 positions in common, counted across the 703 positions we hold weights for in HYBB and 603 in VYM, against full books of 1,074 and 613.
Top Shared Holdings
| Stock | Weight in HYBB | Weight in VYM | Difference |
|---|---|---|---|
| MTCHII 5 12/15/27 14Match Group Inc | 0.05% | 0.04% | 0.01% |
| PFSI 4.25 02/15/29 1Pennymac Financial Services Inc | 0.07% | 0.01% | 0.06% |
You are not choosing between two funds in isolation.
Whichever of HYBB 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, HYBB or VYM?
HYBB has an expense ratio of 0.25% while VYM charges 0.04%. VYM is the cheaper option, by $21 a year on a $10,000 investment.
Which performed better, HYBB or VYM?
Over the past year HYBB returned +2.91% vs +17.82% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (6 years), HYBB annualized +3.60% vs +14.75% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, HYBB or VYM?
VYM has been the more volatile fund at 13.9% annualized versus 6.9% for HYBB. Worst drawdown: HYBB -15.3% vs VYM -15.8%.
Should I hold both HYBB and VYM?
HYBB and VYM have a monthly-return correlation of 0.73, 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, HYBB or VYM?
HYBB yields 5.31% while VYM yields 2.22%, so HYBB currently pays the higher dividend yield.
Is VYM better than HYBB?
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.