VYM vs WABF
Vanguard High Dividend Yield ETF vs Western Asset Bond ETF
Which is better, VYM or WABF?
Large Cap Value against High Yield Bond.
VYM has a lower expense ratio. VYM led over 1Y, 3Y 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 | VYM | WABF |
|---|---|---|
| Expense Ratio | 0.04%Best | 0.35% |
| AUM | $81.6B | $16M |
| Dividend Yield | 2.22% | 5.27% |
| Holdings | 613 | 449 |
| YTD Return | +12.87%Best | -1.61% |
| 1Y Return | +17.25%Best | -1.11% |
| 3Y Return (annualized) | +17.66%Best | +4.72% |
| 5Y Return (annualized) | +11.98% | - |
| Volatility (annualized) | 10.7% | 6.5%Best |
| Max Drawdown | -14.5% | -5.4%Best |
| $10,000 over 3 years | $16,644Best | $11,484 |
| Fund Family | Vanguard (US) | Franklin Templeton Investments (US) |
| Category | Equity | Fixed Income |
| Style | Large Cap Value | High Yield Bond |
| Inception | Nov 10, 2006 | Sep 19, 2023 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown, and the $10,000 over 3 years row, are measured over the window both funds cover: Sep 21, 2023 to Sep 15, 2026 (3 years).
VYM vs WABF 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 3 years both funds cover.
VYM vs WABF Performance
Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US) and Western Asset Bond ETF (WABF) is an ETF from Franklin Templeton Investments (US). Over the past year VYM returned +17.25% while WABF returned -1.11%. Year to date, VYM is up 12.87% versus a loss of 1.61% for WABF.
Over three years, VYM compounded at +17.66% per year against +4.72% for WABF.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 10.7% compared with 6.5% for WABF. 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 -14.5% for VYM and -5.4% for WABF. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.67. They move together some of the time, and apart the rest.
Fees and Cost Over Time
VYM charges 0.04% per year while WABF charges 0.35%. On a $10,000 position that is $4 vs $35 annually, a gap of $31 per year that compounds over a long holding period. On income, VYM currently yields 2.22% against 5.27% for WABF.
You are not choosing between two funds in isolation.
Whichever of VYM and WABF 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, VYM or WABF?
VYM has an expense ratio of 0.04% while WABF charges 0.35%. VYM is the cheaper option, by $31 a year on a $10,000 investment.
Which performed better, VYM or WABF?
Over the past year VYM returned +17.25% vs -1.11% for WABF, so VYM leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VYM or WABF?
VYM has been the more volatile fund at 10.7% annualized versus 6.5% for WABF. Worst drawdown: VYM -14.5% vs WABF -5.4%.
Should I hold both VYM and WABF?
VYM and WABF have a monthly-return correlation of 0.67, 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, VYM or WABF?
VYM yields 2.22% while WABF yields 5.27%, so WABF currently pays the higher dividend yield.
Is WABF better than VYM?
VYM has a lower expense ratio. VYM led over 1Y, 3Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.