TAXX vs VYM
TAXX vs VYM
BondBloxx IR+M Tax-Aware Short Duration 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 | TAXX | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.35% | 0.04% | |
| AUM | $297M | $79.0B | |
| Dividend Yield | 3.51% | 2.86% | |
| Holdings | 326 | 568 | |
| YTD Return | +1.03% | +13.24% | |
| 1Y Return | +2.94% | +23.76% | |
| 3Y Return (annualized) | - | +16.97% | |
| 5Y Return (annualized) | - | +12.26% | |
| Volatility (annualized) | 1.5% | 14.6% | |
| Max Drawdown | -0.9% | -58.8% | |
| Fund Family | BondBloxx | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Mar 14, 2024 | Nov 10, 2006 |
TAXX vs VYM Performance
BondBloxx IR+M Tax-Aware Short Duration ETF (TAXX) is a ETF from BondBloxx and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year TAXX returned +2.94% while VYM returned +23.76%. Year to date, TAXX is up 1.03% versus a gain of 13.24% for VYM.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 1.5% for TAXX. 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 -0.9% for TAXX 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 0.62. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
TAXX 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, TAXX currently yields 3.51% against 2.86% for VYM.
Holdings Overlap
TAXX and VYM share 0 holdings out of 694 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, TAXX or VYM?
TAXX 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, TAXX or VYM?
Over the past year TAXX returned +2.94% vs +23.76% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (2 years), TAXX annualized +3.82% vs +6.96% for VYM. Past performance does not guarantee future results.
Which is riskier, TAXX or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 1.5% for TAXX. Worst drawdown: TAXX -0.9% vs VYM -58.8%.
Should I hold both TAXX and VYM?
TAXX and VYM have a monthly-return correlation of 0.62, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between TAXX and VYM?
TAXX and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 694 unique securities.
Which pays a higher dividend, TAXX or VYM?
TAXX yields 3.51% while VYM yields 2.86%, so TAXX currently pays the higher dividend yield.
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