BBAG vs VYM

Quick Verdict

BBAG has a lower expense ratio. VYM delivered stronger 1-year returns. BBAG offers more diversification with 1312 holdings.

Lower Fees: BBAGHigher Returns: VYMMore Diversified: BBAG

Side-by-Side Comparison

MetricBBAGVYMWinner
Expense Ratio0.03%0.04%
AUM$1.0B$79.0B
Dividend Yield4.20%2.86%
Holdings1,791568
YTD Return-1.34%+15.45%
1Y Return+0.89%+26.05%
3Y Return (annualized)+3.72%+17.96%
5Y Return (annualized)-0.69%+12.54%
Volatility (annualized)5.7%14.6%
Max Drawdown-19.6%-58.8%
Fund FamilyJ.P. Morgan Asset ManagementVanguard (US)
CategoryFixed IncomeEquity
InceptionDec 12, 2018Nov 10, 2006

BBAG vs VYM Performance

JPMorgan BetaBuilders US Aggregate Bond ETF (BBAG) is a ETF from J.P. Morgan Asset Management and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year BBAG returned +0.89% while VYM returned +26.05%. Year to date, BBAG is down 1.34% versus a gain of 15.45% for VYM.

Over three years, BBAG compounded at +3.72% per year against +17.96% for VYM; over five years the annualized figures are -0.69% and +12.54% respectively. Across the full 8-year window we track, VYM has the edge at +7.06% annualized vs +0.89%. 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 5.7% for BBAG. 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 -19.6% for BBAG 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 0.39. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

BBAG charges 0.03% per year while VYM charges 0.04%. On a $10,000 position that is $3 vs $4 annually, a gap of $1 per year that compounds over a long holding period. On income, BBAG currently yields 4.20% against 2.86% for VYM.

Holdings Overlap

0.1%overlap

BBAG and VYM share 2 holdings out of 1868 unique holdings combined, representing a 0.1% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in BBAGWeight in VYMDifference
KDP0.05%0.17%0.12%
SF0.05%0.05%0.00%

Frequently Asked Questions

Which is cheaper, BBAG or VYM?

BBAG has an expense ratio of 0.03% while VYM charges 0.04%. BBAG is the cheaper option. On a $10,000 investment, that is $1 per year of difference.

Which performed better, BBAG or VYM?

Over the past year BBAG returned +0.89% vs +26.05% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (8 years), BBAG annualized +0.89% vs +7.06% for VYM. Past performance does not guarantee future results.

Which is riskier, BBAG or VYM?

VYM has been the more volatile fund at 14.6% annualized versus 5.7% for BBAG. Worst drawdown: BBAG -19.6% vs VYM -58.8%.

Should I hold both BBAG and VYM?

BBAG and VYM have a monthly-return correlation of 0.39, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between BBAG and VYM?

BBAG and VYM share 2 common holdings with a 0.1% weight overlap. Combined, they hold 1868 unique securities.

Which pays a higher dividend, BBAG or VYM?

BBAG yields 4.20% while VYM yields 2.86%, so BBAG currently pays the higher dividend yield.

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