TAXM vs VYM
TAXM vs VYM
BondBloxx IR+M Tax-Aware ETF for Massachusetts Residents 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 | TAXM | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.35% | 0.04% | |
| AUM | $39M | $79.0B | |
| Dividend Yield | 3.31% | 2.86% | |
| Holdings | 143 | 568 | |
| YTD Return | -0.06% | +13.82% | |
| 1Y Return | +3.85% | +24.08% | |
| 3Y Return (annualized) | - | +17.72% | |
| 5Y Return (annualized) | - | +12.13% | |
| Volatility (annualized) | 3.7% | 14.6% | |
| Max Drawdown | -3.1% | -58.8% | |
| Fund Family | BondBloxx | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Mar 13, 2025 | Nov 10, 2006 |
TAXM vs VYM Performance
BondBloxx IR+M Tax-Aware ETF for Massachusetts Residents (TAXM) is a ETF from BondBloxx and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year TAXM returned +3.85% while VYM returned +24.08%. Year to date, TAXM is down 0.06% versus a gain of 13.82% for VYM.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 3.7% for TAXM. 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 -3.1% for TAXM 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 0.48. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
TAXM charges 0.35% per year while VYM charges 0.04%. On a $10,000 position that is $35 vs $4 annually, a gap of $31 per year that compounds over a long holding period. On income, TAXM currently yields 3.31% against 2.86% for VYM.
Holdings Overlap
TAXM and VYM share 0 holdings out of 628 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, TAXM or VYM?
TAXM has an expense ratio of 0.35% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $31 per year of difference.
Which performed better, TAXM or VYM?
Over the past year TAXM returned +3.85% vs +24.08% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (1 years), TAXM annualized +2.63% vs +6.98% for VYM. Past performance does not guarantee future results.
Which is riskier, TAXM or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 3.7% for TAXM. Worst drawdown: TAXM -3.1% vs VYM -58.8%.
Should I hold both TAXM and VYM?
TAXM and VYM have a monthly-return correlation of 0.48, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between TAXM and VYM?
TAXM and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 628 unique securities.
Which pays a higher dividend, TAXM or VYM?
TAXM yields 3.31% while VYM yields 2.86%, so TAXM currently pays the higher dividend yield.
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