VBND vs VYM
Vident US Bond Strategy ETF vs Vanguard High Dividend Yield ETF
Which is better, VBND or VYM?
VYM has been ahead.
VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window. VYM is less concentrated, with 25.9% of the fund in its ten largest positions against 42.2%.
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 | VBND | VYM |
|---|---|---|
| Expense Ratio | 0.41% | 0.04%Best |
| AUM | $522M | $81.6B |
| Dividend Yield | 4.37% | 2.22% |
| Holdings | 177 | 613 |
| YTD Return | -0.76% | +13.91%Best |
| 1Y Return | -0.33% | +17.57%Best |
| 3Y Return (annualized) | +4.39% | +18.12%Best |
| 5Y Return (annualized) | -0.30% | +12.17%Best |
| Volatility (annualized) | 5.3%Best | 13.8% |
| Max Drawdown | -19.0%Best | -35.7% |
| $10,000 over 5 years | $9,851 | $17,758Best |
| Top 10 Weight | 42.2% | 25.9%Best |
| Fund Family | Vident Financial | Vanguard (US) |
| Category | Fixed Income | Equity |
| Style | - | Large Cap Value |
| Inception | Oct 15, 2014 | Nov 10, 2006 |
Volatility and max drawdown are measured over the window both funds cover: Oct 16, 2014 to Sep 11, 2026 (11.9 years).
VBND 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 is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.
VBND vs VYM Performance
Vident US Bond Strategy ETF (VBND) is an ETF from Vident Financial and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year VBND returned -0.33% while VYM returned +17.57%. Year to date, VBND is down 0.76% versus a gain of 13.91% for VYM.
Over three years, VBND compounded at +4.39% per year against +18.12% for VYM; over five years the annualized figures are -0.30% and +12.17% respectively. Across the full 12-year window we track, VYM has the edge at +9.76% annualized vs +0.24%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 13.8% compared with 5.3% for VBND. 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 -19.0% for VBND and -35.7% 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 0.41. They move together some of the time, and apart the rest.
Fees and Cost Over Time
VBND charges 0.41% per year while VYM charges 0.04%. On a $10,000 position that is $41 vs $4 annually, a gap of $37 per year that compounds over a long holding period. On income, VBND currently yields 4.37% against 2.22% for VYM.
Holdings Overlap
We hold position weights for 151 holdings in VBND and 603 in VYM, totalling 98.6% and 99.5% 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 151 positions we hold weights for in VBND and 603 in VYM, against full books of 177 and 613.
What only one of them owns
Our book lists 568 positions for VYM that do not appear in our book for VBND (97.5% of the fund), and 150 for VBND that do not appear in VYM (98.6%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
You are not choosing between two funds in isolation.
Whichever of VBND 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, VBND or VYM?
VBND has an expense ratio of 0.41% while VYM charges 0.04%. VYM is the cheaper option, by $37 a year on a $10,000 investment.
Which performed better, VBND or VYM?
Over the past year VBND returned -0.33% vs +17.57% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (12 years), VBND annualized +0.24% vs +9.76% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VBND or VYM?
VYM has been the more volatile fund at 13.8% annualized versus 5.3% for VBND. Worst drawdown: VBND -19.0% vs VYM -35.7%.
Should I hold both VBND and VYM?
VBND and VYM have a monthly-return correlation of 0.41, 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, VBND or VYM?
VBND yields 4.37% while VYM yields 2.22%, so VBND currently pays the higher dividend yield.
Is VYM better than VBND?
VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window. VYM is less concentrated, with 25.9% of the fund in its ten largest positions against 42.2%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.