JNK vs VYM
State Street SPDR Bloomberg High Yield Bond ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. JNK offers more diversification with 1,231 holdings.
Side-by-Side Comparison
| Metric | JNK | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.40% | 0.04% | |
| AUM | $6.7B | $81.6B | |
| Dividend Yield | 6.65% | 2.24% | |
| Holdings | 1,231 | 616 | |
| YTD Return | +2.36% | +14.66% | |
| 1Y Return | +5.64% | +22.16% | |
| 3Y Return (annualized) | +8.55% | +18.72% | |
| 5Y Return (annualized) | +3.61% | +12.18% | |
| Volatility (annualized) | 10.9% | 14.6% | |
| Max Drawdown | -46.2% | -58.8% | |
| Fund Family | State Street Investment Management | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Nov 28, 2007 | Nov 10, 2006 |
JNK vs VYM Performance
State Street SPDR Bloomberg High Yield Bond ETF (JNK) is a ETF from State Street Investment Management and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year JNK returned +5.64% while VYM returned +22.16%. Year to date, JNK is up 2.36% versus a gain of 14.66% for VYM.
Over three years, JNK compounded at +8.55% per year against +18.72% for VYM; over five years the annualized figures are +3.61% and +12.18% respectively. Across the full 19-year window we track, VYM has the edge at +7.01% annualized vs -0.42%. 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 10.9% for JNK. 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 -46.2% for JNK 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 0.72. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
JNK charges 0.40% per year while VYM charges 0.04%. On a $10,000 position that is $40 vs $4 annually, a gap of $36 per year that compounds over a long holding period. On income, JNK currently yields 6.65% against 2.24% for VYM.
Holdings Overlap
JNK and VYM share 0 holdings out of 646 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, JNK or VYM?
JNK has an expense ratio of 0.40% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $36 per year of difference.
Which performed better, JNK or VYM?
Over the past year JNK returned +5.64% vs +22.16% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (19 years), JNK annualized -0.42% vs +7.01% for VYM. Past performance does not guarantee future results.
Which is riskier, JNK or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 10.9% for JNK. Worst drawdown: JNK -46.2% vs VYM -58.8%.
Should I hold both JNK and VYM?
JNK and VYM have a monthly-return correlation of 0.72, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between JNK and VYM?
JNK and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 646 unique securities.
Which pays a higher dividend, JNK or VYM?
JNK yields 6.65% while VYM yields 2.24%, so JNK currently pays the higher dividend yield.
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