BGT vs VYM
BGT vs VYM
BlackRock Floating Rate Income Trust vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | BGT | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 2.10% | 0.04% | |
| AUM | $331M | $79.0B | |
| Dividend Yield | 12.94% | 2.86% | |
| Holdings | 485 | 568 | |
| YTD Return | +3.76% | +15.20% | |
| 1Y Return | -1.36% | +25.56% | |
| 3Y Return (annualized) | +9.18% | +17.86% | |
| 5Y Return (annualized) | +6.71% | +12.35% | |
| Volatility (annualized) | 14.1% | 14.6% | |
| Max Drawdown | -64.1% | -58.8% | |
| Fund Family | BlackRock, Inc. (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Aug 30, 2004 | Nov 10, 2006 |
BGT vs VYM Performance
BlackRock Floating Rate Income Trust (BGT) is a ETF from BlackRock, Inc. (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year BGT returned -1.36% while VYM returned +25.56%. Year to date, BGT is up 3.76% versus a gain of 15.20% for VYM.
Over three years, BGT compounded at +9.18% per year against +17.86% for VYM; over five years the annualized figures are +6.71% and +12.35% respectively. Across the full 20-year window we track, VYM has the edge at +7.05% annualized vs -0.33%. 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 14.1% for BGT. 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 -64.1% for BGT 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 0.53. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BGT charges 2.10% per year while VYM charges 0.04%. On a $10,000 position that is $210 vs $4 annually, a gap of $206 per year that compounds over a long holding period. On income, BGT currently yields 12.94% against 2.86% for VYM.
Holdings Overlap
Frequently Asked Questions
Which is cheaper, BGT or VYM?
BGT has an expense ratio of 2.10% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $206 per year of difference.
Which performed better, BGT or VYM?
Over the past year BGT returned -1.36% vs +25.56% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), BGT annualized -0.33% vs +7.05% for VYM. Past performance does not guarantee future results.
Which is riskier, BGT or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 14.1% for BGT. Worst drawdown: BGT -64.1% vs VYM -58.8%.
Should I hold both BGT and VYM?
BGT and VYM have a monthly-return correlation of 0.53, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BGT and VYM?
BGT and VYM share 2 common holdings with a 0.0% weight overlap. Combined, they hold 789 unique securities.
Which pays a higher dividend, BGT or VYM?
BGT yields 12.94% while VYM yields 2.86%, so BGT currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.