BNDW vs VYM
BNDW vs VYM
Vanguard Total World 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 | BNDW | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.05% | 0.04% | |
| AUM | $1.9B | $79.0B | |
| Dividend Yield | 2.84% | 2.86% | |
| Holdings | 4 | 568 | |
| YTD Return | +0.01% | +15.20% | |
| 1Y Return | +1.41% | +25.56% | |
| 3Y Return (annualized) | +4.09% | +17.86% | |
| 5Y Return (annualized) | -0.17% | +12.35% | |
| Volatility (annualized) | 5.0% | 14.6% | |
| Max Drawdown | -17.7% | -58.8% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Sep 4, 2018 | Nov 10, 2006 |
BNDW vs VYM Performance
Vanguard Total World Bond ETF (BNDW) is a ETF from Vanguard (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year BNDW returned +1.41% while VYM returned +25.56%. Year to date, BNDW is up 0.01% versus a gain of 15.20% for VYM.
Over three years, BNDW compounded at +4.09% per year against +17.86% for VYM; over five years the annualized figures are -0.17% and +12.35% respectively. Across the full 8-year window we track, VYM has the edge at +7.05% annualized vs +0.90%. 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 5.0% for BNDW. 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 -17.7% for BNDW 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 0.38. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BNDW charges 0.05% per year while VYM charges 0.04%. On a $10,000 position that is $5 vs $4 annually, a gap of $1 per year that compounds over a long holding period. On income, BNDW currently yields 2.84% against 2.86% for VYM.
Holdings Overlap
BNDW and VYM share 0 holdings out of 561 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, BNDW or VYM?
BNDW has an expense ratio of 0.05% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, BNDW or VYM?
Over the past year BNDW returned +1.41% vs +25.56% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (8 years), BNDW annualized +0.90% vs +7.05% for VYM. Past performance does not guarantee future results.
Which is riskier, BNDW or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 5.0% for BNDW. Worst drawdown: BNDW -17.7% vs VYM -58.8%.
Should I hold both BNDW and VYM?
BNDW and VYM have a monthly-return correlation of 0.38, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BNDW and VYM?
BNDW and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 561 unique securities.
Which pays a higher dividend, BNDW or VYM?
BNDW yields 2.84% while VYM yields 2.86%, so VYM 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.