VYM vs WABF
VYM vs WABF
Vanguard High Dividend Yield ETF vs Western Asset Bond 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 | VYM | WABF | Winner |
|---|---|---|---|
| Expense Ratio | 0.04% | 0.35% | |
| AUM | $79.0B | $16M | |
| Dividend Yield | 2.86% | 5.01% | |
| Holdings | 568 | 449 | |
| YTD Return | +15.45% | -0.49% | |
| 1Y Return | +26.05% | +2.04% | |
| 3Y Return (annualized) | +17.96% | - | |
| 5Y Return (annualized) | +12.54% | - | |
| Volatility (annualized) | 14.6% | 6.5% | |
| Max Drawdown | -58.8% | -5.4% | |
| Fund Family | Vanguard (US) | Franklin Templeton Investments (US) | |
| Category | Equity | Fixed Income | |
| Inception | Nov 10, 2006 | Sep 19, 2023 |
VYM vs WABF Performance
Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US) and Western Asset Bond ETF (WABF) is a ETF from Franklin Templeton Investments (US). Over the past year VYM returned +26.05% while WABF returned +2.04%. Year to date, VYM is up 15.45% versus a loss of 0.49% for WABF.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 6.5% for WABF. 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 -58.8% for VYM and -5.4% for WABF. 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 0.66. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VYM charges 0.04% per year while WABF charges 0.35%. On a $10,000 position that is $4 vs $35 annually, a gap of $31 per year that compounds over a long holding period. On income, VYM currently yields 2.86% against 5.01% for WABF.
Holdings Overlap
VYM and WABF share 0 holdings out of 847 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, VYM or WABF?
VYM has an expense ratio of 0.04% while WABF charges 0.35%. VYM is the cheaper option. On a $10,000 investment, that is $31 per year of difference.
Which performed better, VYM or WABF?
Over the past year VYM returned +26.05% vs +2.04% for WABF, so VYM leads on 1-year performance. Over the longest common window we track (3 years), VYM annualized +7.06% vs +5.33% for WABF. Past performance does not guarantee future results.
Which is riskier, VYM or WABF?
VYM has been the more volatile fund at 14.6% annualized versus 6.5% for WABF. Worst drawdown: VYM -58.8% vs WABF -5.4%.
Should I hold both VYM and WABF?
VYM and WABF have a monthly-return correlation of 0.66, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VYM and WABF?
VYM and WABF share 0 common holdings with a 0.0% weight overlap. Combined, they hold 847 unique securities.
Which pays a higher dividend, VYM or WABF?
VYM yields 2.86% while WABF yields 5.01%, so WABF currently pays the higher dividend yield.
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