BNDI vs VYM
BNDI vs VYM
NEOS Enhanced Income Aggregate Bond ETF 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 | BNDI | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.58% | 0.04% | |
| AUM | $185M | $79.0B | |
| Dividend Yield | 5.81% | 2.86% | |
| Holdings | 9 | 568 | |
| YTD Return | +1.33% | +15.57% | |
| 1Y Return | +4.31% | +25.99% | |
| 3Y Return (annualized) | +5.12% | +18.02% | |
| 5Y Return (annualized) | - | +12.71% | |
| Volatility (annualized) | 6.3% | 14.6% | |
| Max Drawdown | -7.0% | -58.8% | |
| Fund Family | NEOS | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Aug 30, 2022 | Nov 10, 2006 |
BNDI vs VYM Performance
NEOS Enhanced Income Aggregate Bond ETF (BNDI) is a ETF from NEOS and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year BNDI returned +4.31% while VYM returned +25.99%. Year to date, BNDI is up 1.33% versus a gain of 15.57% for VYM.
Over three years, BNDI compounded at +5.12% per year against +18.02% for VYM. Across the full 4-year window we track, VYM has the edge at +7.07% annualized vs +3.81%. 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 6.3% for BNDI. 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 -7.0% for BNDI 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 0.61. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BNDI charges 0.58% per year while VYM charges 0.04%. On a $10,000 position that is $58 vs $4 annually, a gap of $54 per year that compounds over a long holding period. On income, BNDI currently yields 5.81% against 2.86% for VYM.
Holdings Overlap
BNDI and VYM share 0 holdings out of 560 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, BNDI or VYM?
BNDI has an expense ratio of 0.58% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $54 per year of difference.
Which performed better, BNDI or VYM?
Over the past year BNDI returned +4.31% vs +25.99% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (4 years), BNDI annualized +3.81% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, BNDI or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 6.3% for BNDI. Worst drawdown: BNDI -7.0% vs VYM -58.8%.
Should I hold both BNDI and VYM?
BNDI and VYM have a monthly-return correlation of 0.61, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BNDI and VYM?
BNDI and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 560 unique securities.
Which pays a higher dividend, BNDI or VYM?
BNDI yields 5.81% while VYM yields 2.86%, so BNDI currently pays the higher dividend yield.
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