MBBB vs VYM

Quick Verdict

VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.

Lower Fees: VYMHigher Returns: VYMMore Diversified: VYM

Side-by-Side Comparison

MetricMBBBVYMWinner
Expense Ratio0.25%0.04%
AUM$5M$79.0B
Dividend Yield5.06%2.86%
Holdings214568
YTD Return-3.00%+15.80%
1Y Return-1.35%+26.12%
3Y Return (annualized)+4.56%+18.25%
5Y Return (annualized)-0.01%+12.51%
Volatility (annualized)7.4%14.6%
Max Drawdown-21.7%-58.8%
Fund FamilyVanEckVanguard (US)
CategoryFixed IncomeEquity
InceptionDec 1, 2020Nov 10, 2006

MBBB vs VYM Performance

VanEck Moody's Analytics BBB Corporate Bond ETF (MBBB) is a ETF from VanEck and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year MBBB returned -1.35% while VYM returned +26.12%. Year to date, MBBB is down 3.00% versus a gain of 15.80% for VYM.

Over three years, MBBB compounded at +4.56% per year against +18.25% for VYM; over five years the annualized figures are -0.01% and +12.51% respectively. Across the full 6-year window we track, VYM has the edge at +7.07% annualized vs +0.40%. 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 7.4% for MBBB. 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 -21.7% for MBBB 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 0.59. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

MBBB 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, MBBB currently yields 5.06% against 2.86% for VYM.

Holdings Overlap

2.2%overlap

MBBB and VYM share 8 holdings out of 741 unique holdings combined, representing a 2.2% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in MBBBWeight in VYMDifference
T0.60%0.85%0.25%
MO0.90%0.51%0.39%
MCD0.25%1.07%0.82%
KRProProPro
WMBProProPro
CAGProProPro
SYYProProPro
KDPProProPro
See all 8 holdings MBBB shares with VYM
Exact weights in each fund and the difference, for every overlapping position.
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Frequently Asked Questions

Which is cheaper, MBBB or VYM?

MBBB has an expense ratio of 0.25% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $21 per year of difference.

Which performed better, MBBB or VYM?

Over the past year MBBB returned -1.35% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (6 years), MBBB annualized +0.40% vs +7.07% for VYM. Past performance does not guarantee future results.

Which is riskier, MBBB or VYM?

VYM has been the more volatile fund at 14.6% annualized versus 7.4% for MBBB. Worst drawdown: MBBB -21.7% vs VYM -58.8%.

Should I hold both MBBB and VYM?

MBBB and VYM have a monthly-return correlation of 0.59, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between MBBB and VYM?

MBBB and VYM share 8 common holdings with a 2.2% weight overlap. Combined, they hold 741 unique securities.

Which pays a higher dividend, MBBB or VYM?

MBBB yields 5.06% while VYM yields 2.86%, so MBBB currently pays the higher dividend yield.

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