MBB vs VYM
MBB vs VYM
iShares MBS ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM delivered stronger 1-year returns. MBB offers more diversification with 2339 holdings.
Side-by-Side Comparison
| Metric | MBB | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.04% | 0.04% | |
| AUM | $39.1B | $79.0B | |
| Dividend Yield | 4.26% | 2.86% | |
| Holdings | 11,178 | 568 | |
| YTD Return | -0.26% | +13.24% | |
| 1Y Return | +4.17% | +23.76% | |
| 3Y Return (annualized) | +4.35% | +16.97% | |
| 5Y Return (annualized) | +0.06% | +12.26% | |
| Volatility (annualized) | 4.3% | 14.6% | |
| Max Drawdown | -18.4% | -58.8% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Mar 13, 2007 | Nov 10, 2006 |
MBB vs VYM Performance
iShares MBS ETF (MBB) 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 MBB returned +4.17% while VYM returned +23.76%. Year to date, MBB is down 0.26% versus a gain of 13.24% for VYM.
Over three years, MBB compounded at +4.35% per year against +16.97% for VYM; over five years the annualized figures are +0.06% and +12.26% respectively. Across the full 19-year window we track, VYM has the edge at +6.96% annualized vs +0.45%. 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 4.3% for MBB. 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 -18.4% for MBB 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 0.19. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MBB charges 0.04% per year while VYM charges 0.04%. On a $10,000 position that is $4 vs $4 annually. On income, MBB currently yields 4.26% against 2.86% for VYM.
Holdings Overlap
MBB and VYM share 0 holdings out of 2897 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, MBB or VYM?
MBB has an expense ratio of 0.04% while VYM charges 0.04%. They cost the same. On a $10,000 investment, that is $0 per year of difference.
Which performed better, MBB or VYM?
Over the past year MBB returned +4.17% vs +23.76% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (19 years), MBB annualized +0.45% vs +6.96% for VYM. Past performance does not guarantee future results.
Which is riskier, MBB or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 4.3% for MBB. Worst drawdown: MBB -18.4% vs VYM -58.8%.
Should I hold both MBB and VYM?
MBB and VYM have a monthly-return correlation of 0.19, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MBB and VYM?
MBB and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2897 unique securities.
Which pays a higher dividend, MBB or VYM?
MBB yields 4.26% while VYM yields 2.86%, so MBB currently pays the higher dividend yield.
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