NBFC vs VYM
NBFC vs VYM
Neuberger Berman Flexible Credit 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 | NBFC | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.40% | 0.04% | |
| AUM | $76M | $79.0B | |
| Dividend Yield | 7.29% | 2.86% | |
| Holdings | 557 | 568 | |
| YTD Return | +2.42% | +15.80% | |
| 1Y Return | +6.02% | +26.12% | |
| 3Y Return (annualized) | - | +18.25% | |
| 5Y Return (annualized) | - | +12.51% | |
| Volatility (annualized) | 3.3% | 14.6% | |
| Max Drawdown | -4.0% | -58.8% | |
| Fund Family | Neuberger Berman | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jun 24, 2024 | Nov 10, 2006 |
NBFC vs VYM Performance
Neuberger Berman Flexible Credit Income ETF (NBFC) is a ETF from Neuberger Berman and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year NBFC returned +6.02% while VYM returned +26.12%. Year to date, NBFC is up 2.42% versus a gain of 15.80% for VYM.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 3.3% for NBFC. 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 -4.0% for NBFC 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 0.79. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
NBFC charges 0.40% per year while VYM charges 0.04%. On a $10,000 position that is $40 vs $4 annually, a gap of $36 per year that compounds over a long holding period. On income, NBFC currently yields 7.29% against 2.86% for VYM.
Holdings Overlap
NBFC and VYM share 1 holdings out of 853 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in NBFC | Weight in VYM | Difference |
|---|---|---|---|
| CNP | 0.18% | 0.12% | 0.06% |
Frequently Asked Questions
Which is cheaper, NBFC or VYM?
NBFC has an expense ratio of 0.40% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $36 per year of difference.
Which performed better, NBFC or VYM?
Over the past year NBFC returned +6.02% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (2 years), NBFC annualized +7.91% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, NBFC or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 3.3% for NBFC. Worst drawdown: NBFC -4.0% vs VYM -58.8%.
Should I hold both NBFC and VYM?
NBFC and VYM have a monthly-return correlation of 0.79, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between NBFC and VYM?
NBFC and VYM share 1 common holdings with a 0.1% weight overlap. Combined, they hold 853 unique securities.
Which pays a higher dividend, NBFC or VYM?
NBFC yields 7.29% while VYM yields 2.86%, so NBFC currently pays the higher dividend yield.
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