BKT vs VYM
BKT vs VYM
BlackRock Income Trust Inc 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 | BKT | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 2.75% | 0.04% | |
| AUM | $350M | $79.0B | |
| Dividend Yield | 9.60% | 2.86% | |
| Holdings | 336 | 568 | |
| YTD Return | +0.93% | +15.80% | |
| 1Y Return | -1.50% | +26.12% | |
| 3Y Return (annualized) | +5.20% | +18.25% | |
| 5Y Return (annualized) | -2.93% | +12.51% | |
| Volatility (annualized) | 9.2% | 14.6% | |
| Max Drawdown | -46.0% | -58.8% | |
| Fund Family | BlackRock, Inc. (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Aug 1, 1988 | Nov 10, 2006 |
BKT vs VYM Performance
BlackRock Income Trust Inc (BKT) is a ETF from BlackRock, Inc. (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year BKT returned -1.50% while VYM returned +26.12%. Year to date, BKT is up 0.93% versus a gain of 15.80% for VYM.
Over three years, BKT compounded at +5.20% per year against +18.25% for VYM; over five years the annualized figures are -2.93% and +12.51% respectively. Across the full 20-year window we track, VYM has the edge at +7.07% 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 9.2% for BKT. 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 -46.0% for BKT 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 0.33. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BKT charges 2.75% per year while VYM charges 0.04%. On a $10,000 position that is $275 vs $4 annually, a gap of $271 per year that compounds over a long holding period. On income, BKT currently yields 9.60% against 2.86% for VYM.
Holdings Overlap
BKT and VYM share 0 holdings out of 652 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, BKT or VYM?
BKT has an expense ratio of 2.75% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $271 per year of difference.
Which performed better, BKT or VYM?
Over the past year BKT returned -1.50% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), BKT annualized -0.33% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, BKT or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 9.2% for BKT. Worst drawdown: BKT -46.0% vs VYM -58.8%.
Should I hold both BKT and VYM?
BKT and VYM have a monthly-return correlation of 0.33, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BKT and VYM?
BKT and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 652 unique securities.
Which pays a higher dividend, BKT or VYM?
BKT yields 9.60% while VYM yields 2.86%, so BKT currently pays the higher dividend yield.
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