HYBB vs VYM
HYBB vs VYM
iShares BB Rated Corporate Bond ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. HYBB offers more diversification with 897 holdings.
Side-by-Side Comparison
| Metric | HYBB | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.25% | 0.04% | |
| AUM | $409M | $79.0B | |
| Dividend Yield | 5.27% | 2.86% | |
| Holdings | 1,076 | 568 | |
| YTD Return | +0.75% | +13.82% | |
| 1Y Return | +3.99% | +24.08% | |
| 3Y Return (annualized) | +7.20% | +17.72% | |
| 5Y Return (annualized) | +3.05% | +12.13% | |
| Volatility (annualized) | 6.9% | 14.6% | |
| Max Drawdown | -15.3% | -58.8% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Oct 6, 2020 | Nov 10, 2006 |
HYBB vs VYM Performance
iShares BB Rated Corporate Bond ETF (HYBB) 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 HYBB returned +3.99% while VYM returned +24.08%. Year to date, HYBB is up 0.75% versus a gain of 13.82% for VYM.
Over three years, HYBB compounded at +7.20% per year against +17.72% for VYM; over five years the annualized figures are +3.05% and +12.13% respectively. Across the full 6-year window we track, VYM has the edge at +6.98% annualized vs +3.62%. 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 6.9% for HYBB. 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 -15.3% for HYBB 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 0.73. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
HYBB 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, HYBB currently yields 5.27% against 2.86% for VYM.
Holdings Overlap
HYBB and VYM share 0 holdings out of 1455 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, HYBB or VYM?
HYBB 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, HYBB or VYM?
Over the past year HYBB returned +3.99% vs +24.08% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (6 years), HYBB annualized +3.62% vs +6.98% for VYM. Past performance does not guarantee future results.
Which is riskier, HYBB or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 6.9% for HYBB. Worst drawdown: HYBB -15.3% vs VYM -58.8%.
Should I hold both HYBB and VYM?
HYBB and VYM have a monthly-return correlation of 0.73, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between HYBB and VYM?
HYBB and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1455 unique securities.
Which pays a higher dividend, HYBB or VYM?
HYBB yields 5.27% while VYM yields 2.86%, so HYBB currently pays the higher dividend yield.
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