SUB vs VYM
SUB vs VYM
iShares Short-Term National Muni Bond ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. SUB offers more diversification with 783 holdings.
Side-by-Side Comparison
| Metric | SUB | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.07% | 0.04% | |
| AUM | $11.3B | $79.0B | |
| Dividend Yield | 2.52% | 2.86% | |
| Holdings | 2,925 | 568 | |
| YTD Return | +0.84% | +15.80% | |
| 1Y Return | +1.82% | +26.12% | |
| 3Y Return (annualized) | +3.08% | +18.25% | |
| 5Y Return (annualized) | +1.43% | +12.51% | |
| Volatility (annualized) | 1.7% | 14.6% | |
| Max Drawdown | -11.7% | -58.8% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Nov 5, 2008 | Nov 10, 2006 |
SUB vs VYM Performance
iShares Short-Term National Muni Bond ETF (SUB) 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 SUB returned +1.82% while VYM returned +26.12%. Year to date, SUB is up 0.84% versus a gain of 15.80% for VYM.
Over three years, SUB compounded at +3.08% per year against +18.25% for VYM; over five years the annualized figures are +1.43% and +12.51% respectively. Across the full 18-year window we track, VYM has the edge at +7.07% annualized vs +0.81%. 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 1.7% for SUB. 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 -11.7% for SUB 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 0.19. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SUB charges 0.07% per year while VYM charges 0.04%. On a $10,000 position that is $7 vs $4 annually, a gap of $3 per year that compounds over a long holding period. On income, SUB currently yields 2.52% against 2.86% for VYM.
Holdings Overlap
SUB and VYM share 0 holdings out of 1341 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, SUB or VYM?
SUB has an expense ratio of 0.07% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, SUB or VYM?
Over the past year SUB returned +1.82% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (18 years), SUB annualized +0.81% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, SUB or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 1.7% for SUB. Worst drawdown: SUB -11.7% vs VYM -58.8%.
Should I hold both SUB and VYM?
SUB and VYM have a monthly-return correlation of 0.19, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SUB and VYM?
SUB and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1341 unique securities.
Which pays a higher dividend, SUB or VYM?
SUB yields 2.52% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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