BIT vs VYM
BIT vs VYM
BlackRock Multi-Sector Income Trust vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. BIT offers more diversification with 955 holdings.
Side-by-Side Comparison
| Metric | BIT | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 4.26% | 0.04% | |
| AUM | $746M | $79.0B | |
| Dividend Yield | 11.16% | 2.86% | |
| Holdings | 1,589 | 568 | |
| YTD Return | +0.33% | +15.45% | |
| 1Y Return | -6.79% | +26.05% | |
| 3Y Return (annualized) | +3.89% | +17.96% | |
| 5Y Return (annualized) | +1.65% | +12.54% | |
| Volatility (annualized) | 13.1% | 14.6% | |
| Max Drawdown | -53.3% | -58.8% | |
| Fund Family | BlackRock, Inc. (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Feb 25, 2013 | Nov 10, 2006 |
BIT vs VYM Performance
BlackRock Multi-Sector Income Trust (BIT) is a ETF from BlackRock, Inc. (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year BIT returned -6.79% while VYM returned +26.05%. Year to date, BIT is up 0.33% versus a gain of 15.45% for VYM.
Over three years, BIT compounded at +3.89% per year against +17.96% for VYM; over five years the annualized figures are +1.65% and +12.54% respectively. Across the full 13-year window we track, VYM has the edge at +7.06% annualized vs +0.41%. 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 13.1% for BIT. 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 -53.3% for BIT 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 0.63. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BIT charges 4.26% per year while VYM charges 0.04%. On a $10,000 position that is $426 vs $4 annually, a gap of $422 per year that compounds over a long holding period. On income, BIT currently yields 11.16% against 2.86% for VYM.
Holdings Overlap
BIT and VYM share 1 holdings out of 1512 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in BIT | Weight in VYM | Difference |
|---|---|---|---|
| VSNT | 0.02% | 0.02% | 0.00% |
Frequently Asked Questions
Which is cheaper, BIT or VYM?
BIT has an expense ratio of 4.26% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $422 per year of difference.
Which performed better, BIT or VYM?
Over the past year BIT returned -6.79% vs +26.05% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (13 years), BIT annualized +0.41% vs +7.06% for VYM. Past performance does not guarantee future results.
Which is riskier, BIT or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 13.1% for BIT. Worst drawdown: BIT -53.3% vs VYM -58.8%.
Should I hold both BIT and VYM?
BIT and VYM have a monthly-return correlation of 0.63, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BIT and VYM?
BIT and VYM share 1 common holdings with a 0.0% weight overlap. Combined, they hold 1512 unique securities.
Which pays a higher dividend, BIT or VYM?
BIT yields 11.16% while VYM yields 2.86%, so BIT currently pays the higher dividend yield.
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