CMBS vs VYM
CMBS vs VYM
iShares CMBS 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 | CMBS | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.25% | 0.04% | |
| AUM | $473M | $79.0B | |
| Dividend Yield | 3.57% | 2.86% | |
| Holdings | 467 | 568 | |
| YTD Return | -0.32% | +13.82% | |
| 1Y Return | +1.88% | +24.08% | |
| 3Y Return (annualized) | +5.17% | +17.72% | |
| 5Y Return (annualized) | +0.45% | +12.13% | |
| Volatility (annualized) | 3.9% | 14.6% | |
| Max Drawdown | -16.4% | -58.8% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Feb 14, 2012 | Nov 10, 2006 |
CMBS vs VYM Performance
iShares CMBS ETF (CMBS) is a ETF from iShares by BlackRock (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year CMBS returned +1.88% while VYM returned +24.08%. Year to date, CMBS is down 0.32% versus a gain of 13.82% for VYM.
Over three years, CMBS compounded at +5.17% per year against +17.72% for VYM; over five years the annualized figures are +0.45% and +12.13% respectively. Across the full 15-year window we track, VYM has the edge at +6.98% annualized vs +0.80%. 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 3.9% for CMBS. 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 -16.4% for CMBS 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 0.21. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
CMBS charges 0.25% per year while VYM charges 0.04%. On a $10,000 position that is $25 vs $4 annually, a gap of $21 per year that compounds over a long holding period. On income, CMBS currently yields 3.57% against 2.86% for VYM.
Holdings Overlap
CMBS and VYM share 0 holdings out of 1002 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, CMBS or VYM?
CMBS has an expense ratio of 0.25% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $21 per year of difference.
Which performed better, CMBS or VYM?
Over the past year CMBS returned +1.88% vs +24.08% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (15 years), CMBS annualized +0.80% vs +6.98% for VYM. Past performance does not guarantee future results.
Which is riskier, CMBS or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 3.9% for CMBS. Worst drawdown: CMBS -16.4% vs VYM -58.8%.
Should I hold both CMBS and VYM?
CMBS and VYM have a monthly-return correlation of 0.21, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between CMBS and VYM?
CMBS and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1002 unique securities.
Which pays a higher dividend, CMBS or VYM?
CMBS yields 3.57% while VYM yields 2.86%, so CMBS currently pays the higher dividend yield.
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