NBXG vs VYM
Neuberger Berman Next Generation Connectivity Fund Inc 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 616 holdings.
Side-by-Side Comparison
| Metric | NBXG | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 1.30% | 0.04% | |
| AUM | - | $81.6B | |
| Dividend Yield | 8.34% | 2.24% | |
| Holdings | 137 | 616 | |
| YTD Return | +15.23% | +16.42% | |
| 1Y Return | +17.69% | +24.22% | |
| 3Y Return (annualized) | +25.03% | +19.03% | |
| 5Y Return (annualized) | +5.29% | +12.21% | |
| Volatility (annualized) | 22.7% | 14.6% | |
| Max Drawdown | -51.8% | -58.8% | |
| Fund Family | Neuberger Berman | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | May 25, 2021 | Nov 10, 2006 |
NBXG vs VYM Performance
Neuberger Berman Next Generation Connectivity Fund Inc (NBXG) is a ETF from Neuberger Berman and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year NBXG returned +17.69% while VYM returned +24.22%. Year to date, NBXG is up 15.23% versus a gain of 16.42% for VYM.
Over three years, NBXG compounded at +25.03% per year against +19.03% for VYM; over five years the annualized figures are +5.29% and +12.21% respectively. Across the full 5-year window we track, VYM has the edge at +7.10% annualized vs +5.34%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
NBXG has been the more volatile fund, with annualized monthly volatility of 22.7% 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 -51.8% for NBXG 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 0.51. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
NBXG charges 1.30% per year while VYM charges 0.04%. On a $10,000 position that is $130 vs $4 annually, a gap of $126 per year that compounds over a long holding period. On income, NBXG currently yields 8.34% against 2.24% for VYM.
Holdings Overlap
NBXG and VYM share 6 holdings out of 649 unique holdings combined, representing a 5.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, NBXG or VYM?
NBXG has an expense ratio of 1.30% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $126 per year of difference.
Which performed better, NBXG or VYM?
Over the past year NBXG returned +17.69% vs +24.22% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (5 years), NBXG annualized +5.34% vs +7.10% for VYM. Past performance does not guarantee future results.
Which is riskier, NBXG or VYM?
NBXG has been the more volatile fund at 22.7% annualized versus 14.6% for VYM. Worst drawdown: NBXG -51.8% vs VYM -58.8%.
Should I hold both NBXG and VYM?
NBXG and VYM have a monthly-return correlation of 0.51, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between NBXG and VYM?
NBXG and VYM share 6 common holdings with a 5.3% weight overlap. Combined, they hold 649 unique securities.
Which pays a higher dividend, NBXG or VYM?
NBXG yields 8.34% while VYM yields 2.24%, so NBXG currently pays the higher dividend yield.
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