OBND 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

MetricOBNDVYMWinner
Expense Ratio0.55%0.04%
AUM$57M$79.0B
Dividend Yield6.27%2.86%
Holdings438568
YTD Return-2.36%+15.80%
1Y Return+0.22%+26.12%
3Y Return (annualized)+5.21%+18.25%
5Y Return (annualized)-+12.51%
Volatility (annualized)6.3%14.6%
Max Drawdown-15.9%-58.8%
Fund FamilyState Street Investment ManagementVanguard (US)
CategoryAllocation/BalancedEquity
InceptionSep 27, 2021Nov 10, 2006

OBND vs VYM Performance

State Street Loomis Sayles Opportunistic Bond ETF (OBND) 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 OBND returned +0.22% while VYM returned +26.12%. Year to date, OBND is down 2.36% versus a gain of 15.80% for VYM.

Over three years, OBND compounded at +5.21% per year against +18.25% for VYM. Across the full 5-year window we track, VYM has the edge at +7.07% annualized vs +1.47%. 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 6.3% for OBND. 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 -15.9% for OBND 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 0.70. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

OBND charges 0.55% per year while VYM charges 0.04%. On a $10,000 position that is $55 vs $4 annually, a gap of $51 per year that compounds over a long holding period. On income, OBND currently yields 6.27% against 2.86% for VYM.

Holdings Overlap

0.1%overlap

OBND and VYM share 2 holdings out of 565 unique holdings combined, representing a 0.1% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in OBNDWeight in VYMDifference
BX0.05%0.37%0.32%
EQH0.10%0.05%0.05%

Frequently Asked Questions

Which is cheaper, OBND or VYM?

OBND has an expense ratio of 0.55% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $51 per year of difference.

Which performed better, OBND or VYM?

Over the past year OBND returned +0.22% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (5 years), OBND annualized +1.47% vs +7.07% for VYM. Past performance does not guarantee future results.

Which is riskier, OBND or VYM?

VYM has been the more volatile fund at 14.6% annualized versus 6.3% for OBND. Worst drawdown: OBND -15.9% vs VYM -58.8%.

Should I hold both OBND and VYM?

OBND and VYM have a monthly-return correlation of 0.70, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between OBND and VYM?

OBND and VYM share 2 common holdings with a 0.1% weight overlap. Combined, they hold 565 unique securities.

Which pays a higher dividend, OBND or VYM?

OBND yields 6.27% while VYM yields 2.86%, so OBND currently pays the higher dividend yield.

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