NBSM vs VYM
Neuberger Berman Small-Mid Cap 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 568 holdings.
Side-by-Side Comparison
| Metric | NBSM | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.65% | 0.04% | |
| AUM | $114M | $79.0B | |
| Dividend Yield | 0.36% | 2.86% | |
| Holdings | 74 | 568 | |
| YTD Return | +15.99% | +16.78% | |
| 1Y Return | +13.29% | +24.43% | |
| 3Y Return (annualized) | - | +18.60% | |
| 5Y Return (annualized) | - | +12.30% | |
| Volatility (annualized) | 14.9% | 14.6% | |
| Max Drawdown | -25.2% | -58.8% | |
| Fund Family | Neuberger Berman | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Mar 20, 2024 | Nov 10, 2006 |
NBSM vs VYM Performance
Neuberger Berman Small-Mid Cap ETF (NBSM) is a ETF from Neuberger Berman and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year NBSM returned +13.29% while VYM returned +24.43%. Year to date, NBSM is up 15.99% versus a gain of 16.78% for VYM.
Risk: Volatility and Drawdowns
NBSM has been the more volatile fund, with annualized monthly volatility of 14.9% compared with 14.6% for VYM. 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 -25.2% for NBSM 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 0.82. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
NBSM charges 0.65% per year while VYM charges 0.04%. On a $10,000 position that is $65 vs $4 annually, a gap of $61 per year that compounds over a long holding period. On income, NBSM currently yields 0.36% against 2.86% for VYM.
Holdings Overlap
NBSM and VYM share 13 holdings out of 617 unique holdings combined, representing a 0.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, NBSM or VYM?
NBSM has an expense ratio of 0.65% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $61 per year of difference.
Which performed better, NBSM or VYM?
Over the past year NBSM returned +13.29% vs +24.43% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (2 years), NBSM annualized +6.60% vs +7.11% for VYM. Past performance does not guarantee future results.
Which is riskier, NBSM or VYM?
NBSM has been the more volatile fund at 14.9% annualized versus 14.6% for VYM. Worst drawdown: NBSM -25.2% vs VYM -58.8%.
Should I hold both NBSM and VYM?
NBSM and VYM have a monthly-return correlation of 0.82, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between NBSM and VYM?
NBSM and VYM share 13 common holdings with a 0.4% weight overlap. Combined, they hold 617 unique securities.
Which pays a higher dividend, NBSM or VYM?
NBSM yields 0.36% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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