VABS vs VYM
Virtus Newfleet ABS/MBS ETF vs Vanguard High Dividend Yield ETF
Which is better, VABS or VYM?
Short Term Bond against Large Cap Value.
VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | VABS | VYM |
|---|---|---|
| Expense Ratio | 0.39% | 0.04%Best |
| AUM | $112M | $81.6B |
| Dividend Yield | 4.88% | 2.22% |
| Holdings | 162 | 613 |
| YTD Return | +1.51% | +10.96%Best |
| 1Y Return | +2.06% | +15.42%Best |
| 3Y Return (annualized) | +5.75% | +17.78%Best |
| 5Y Return (annualized) | +3.15% | +12.05%Best |
| Volatility (annualized) | 2.2%Best | 13.5% |
| Max Drawdown | -7.1%Best | -15.8% |
| $10,000 over 5 years | $11,677 | $17,663Best |
| Fund Family | Virtus Investment Partners | Vanguard (US) |
| Category | Fixed Income | Equity |
| Style | Short Term Bond | Large Cap Value |
| Inception | Feb 9, 2021 | Nov 10, 2006 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Feb 10, 2021 to Sep 22, 2026 (5.6 years).
VABS vs VYM growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 5.6 years both funds cover.
VABS vs VYM Performance
Virtus Newfleet ABS/MBS ETF (VABS) is an ETF from Virtus Investment Partners and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year VABS returned +2.06% while VYM returned +15.42%. Year to date, VABS is up 1.51% versus a gain of 10.96% for VYM.
Over three years, VABS compounded at +5.75% per year against +17.78% for VYM; over five years the annualized figures are +3.15% and +12.05% respectively. Across the full 6-year window we track, VYM has the edge at +12.65% annualized vs +2.98%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 13.5% compared with 2.2% for VABS. 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 -7.1% for VABS and -15.8% for VYM. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.32. They move together some of the time, and apart the rest.
Fees and Cost Over Time
VABS charges 0.39% per year while VYM charges 0.04%. On a $10,000 position that is $39 vs $4 annually, a gap of $35 per year that compounds over a long holding period. On income, VABS currently yields 4.88% against 2.22% for VYM.
Holdings Overlap
We hold position weights for 1 holding in VABS and 557 in VYM, totalling 0.7% and 99.2% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 1 positions we hold weights for in VABS and 557 in VYM, against full books of 162 and 613.
You are not choosing between two funds in isolation.
Whichever of VABS and VYM you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, VABS or VYM?
VABS has an expense ratio of 0.39% while VYM charges 0.04%. VYM is the cheaper option, by $35 a year on a $10,000 investment.
Which performed better, VABS or VYM?
Over the past year VABS returned +2.06% vs +15.42% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (6 years), VABS annualized +2.98% vs +12.65% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VABS or VYM?
VYM has been the more volatile fund at 13.5% annualized versus 2.2% for VABS. Worst drawdown: VABS -7.1% vs VYM -15.8%.
Should I hold both VABS and VYM?
VABS and VYM have a monthly-return correlation of 0.32, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, VABS or VYM?
VABS yields 4.88% while VYM yields 2.22%, so VABS currently pays the higher dividend yield.
Is VYM better than VABS?
VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.