MEAR vs VYM
iShares Short Maturity Municipal Bond Active ETF 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 558 holdings.
Side-by-Side Comparison
| Metric | MEAR | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.26% | 0.04% | |
| AUM | $1.4B | $79.0B | |
| Dividend Yield | 2.84% | 2.86% | |
| Holdings | 346 | 568 | |
| YTD Return | -0.28% | +16.10% | |
| 1Y Return | +0.61% | +25.99% | |
| 3Y Return (annualized) | +2.78% | +18.29% | |
| 5Y Return (annualized) | +2.10% | +12.35% | |
| Volatility (annualized) | 6.5% | 14.6% | |
| Max Drawdown | -14.4% | -58.8% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Mar 3, 2015 | Nov 10, 2006 |
MEAR vs VYM Performance
iShares Short Maturity Municipal Bond Active ETF (MEAR) is a ETF from iShares by BlackRock (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year MEAR returned +0.61% while VYM returned +25.99%. Year to date, MEAR is down 0.28% versus a gain of 16.10% for VYM.
Over three years, MEAR compounded at +2.78% per year against +18.29% for VYM; over five years the annualized figures are +2.10% and +12.35% respectively. Across the full 11-year window we track, VYM has the edge at +7.08% annualized vs +1.51%. 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 6.5% for MEAR. 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 -14.4% for MEAR 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 0.02. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MEAR charges 0.26% per year while VYM charges 0.04%. On a $10,000 position that is $26 vs $4 annually, a gap of $22 per year that compounds over a long holding period. On income, MEAR currently yields 2.84% against 2.86% for VYM.
Holdings Overlap
MEAR and VYM share 0 holdings out of 633 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, MEAR or VYM?
MEAR has an expense ratio of 0.26% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $22 per year of difference.
Which performed better, MEAR or VYM?
Over the past year MEAR returned +0.61% vs +25.99% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (11 years), MEAR annualized +1.51% vs +7.08% for VYM. Past performance does not guarantee future results.
Which is riskier, MEAR or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 6.5% for MEAR. Worst drawdown: MEAR -14.4% vs VYM -58.8%.
Should I hold both MEAR and VYM?
MEAR and VYM have a monthly-return correlation of 0.02, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MEAR and VYM?
MEAR and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 633 unique securities.
Which pays a higher dividend, MEAR or VYM?
MEAR yields 2.84% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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