BNDS vs VYM
BNDS vs VYM
Infrastructure Capital Bond Income 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 | BNDS | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.88% | 0.04% | |
| AUM | $94M | $79.0B | |
| Dividend Yield | 8.71% | 2.86% | |
| Holdings | 77 | 568 | |
| YTD Return | +4.32% | +15.20% | |
| 1Y Return | +9.25% | +25.56% | |
| 3Y Return (annualized) | - | +17.86% | |
| 5Y Return (annualized) | - | +12.35% | |
| Volatility (annualized) | 5.2% | 14.6% | |
| Max Drawdown | -7.0% | -58.8% | |
| Fund Family | InfraCap | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jan 15, 2025 | Nov 10, 2006 |
BNDS vs VYM Performance
Infrastructure Capital Bond Income ETF (BNDS) is a ETF from InfraCap and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year BNDS returned +9.25% while VYM returned +25.56%. Year to date, BNDS is up 4.32% versus a gain of 15.20% for VYM.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 5.2% for BNDS. 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 BNDS 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 0.92. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
BNDS charges 0.88% per year while VYM charges 0.04%. On a $10,000 position that is $88 vs $4 annually, a gap of $84 per year that compounds over a long holding period. On income, BNDS currently yields 8.71% against 2.86% for VYM.
Holdings Overlap
BNDS and VYM share 0 holdings out of 628 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, BNDS or VYM?
BNDS has an expense ratio of 0.88% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $84 per year of difference.
Which performed better, BNDS or VYM?
Over the past year BNDS returned +9.25% vs +25.56% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (2 years), BNDS annualized +8.32% vs +7.05% for VYM. Past performance does not guarantee future results.
Which is riskier, BNDS or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 5.2% for BNDS. Worst drawdown: BNDS -7.0% vs VYM -58.8%.
Should I hold both BNDS and VYM?
BNDS and VYM have a monthly-return correlation of 0.92, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between BNDS and VYM?
BNDS and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 628 unique securities.
Which pays a higher dividend, BNDS or VYM?
BNDS yields 8.71% while VYM yields 2.86%, so BNDS currently pays the higher dividend yield.
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