SABA vs VYM
Saba Capital Income & Opportunities Fund II vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. SABA offers more diversification with 740 holdings.
Side-by-Side Comparison
| Metric | SABA | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.71% | 0.04% | |
| AUM | $253M | $81.6B | |
| Dividend Yield | 8.33% | 2.24% | |
| Holdings | 740 | 616 | |
| YTD Return | +5.37% | +14.84% | |
| 1Y Return | -2.10% | +20.88% | |
| 3Y Return (annualized) | +10.01% | +18.34% | |
| 5Y Return (annualized) | +3.49% | +12.04% | |
| Volatility (annualized) | 13.2% | 14.6% | |
| Max Drawdown | -62.0% | -58.8% | |
| Fund Family | Saba Capital | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Mar 17, 1988 | Nov 10, 2006 |
SABA vs VYM Performance
Saba Capital Income & Opportunities Fund II (SABA) is a ETF from Saba Capital and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year SABA returned -2.10% while VYM returned +20.88%. Year to date, SABA is up 5.37% versus a gain of 14.84% for VYM.
Over three years, SABA compounded at +10.01% per year against +18.34% for VYM; over five years the annualized figures are +3.49% and +12.04% respectively. Across the full 20-year window we track, VYM has the edge at +7.01% annualized vs -0.18%. 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 13.2% for SABA. 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 -62.0% for SABA 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 0.53. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SABA charges 0.71% per year while VYM charges 0.04%. On a $10,000 position that is $71 vs $4 annually, a gap of $67 per year that compounds over a long holding period. On income, SABA currently yields 8.33% against 2.24% for VYM.
Holdings Overlap
SABA and VYM share 34 holdings out of 948 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, SABA or VYM?
SABA has an expense ratio of 0.71% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $67 per year of difference.
Which performed better, SABA or VYM?
Over the past year SABA returned -2.10% vs +20.88% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), SABA annualized -0.18% vs +7.01% for VYM. Past performance does not guarantee future results.
Which is riskier, SABA or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 13.2% for SABA. Worst drawdown: SABA -62.0% vs VYM -58.8%.
Should I hold both SABA and VYM?
SABA and VYM have a monthly-return correlation of 0.53, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SABA and VYM?
SABA and VYM share 34 common holdings with a 0.0% weight overlap. Combined, they hold 948 unique securities.
Which pays a higher dividend, SABA or VYM?
SABA yields 8.33% while VYM yields 2.24%, so SABA currently pays the higher dividend yield.
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