VYM vs XB

Quick Verdict

VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.

Lower Fees: VYMHigher Returns: VYMMore Diversified: VYM

Side-by-Side Comparison

MetricVYMXBWinner
Expense Ratio0.04%0.30%
AUM$79.0B$72M
Dividend Yield2.86%7.10%
Holdings568585
YTD Return+13.24%+2.12%
1Y Return+23.76%+5.42%
3Y Return (annualized)+16.97%+7.91%
5Y Return (annualized)+12.26%-
Volatility (annualized)14.6%7.5%
Max Drawdown-58.8%-9.3%
Fund FamilyVanguard (US)BondBloxx
CategoryEquityFixed Income
InceptionNov 10, 2006May 24, 2022

VYM vs XB Performance

Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US) and BondBloxx B Rated USD High Yield Corporate Bond ETF (XB) is a ETF from BondBloxx. Over the past year VYM returned +23.76% while XB returned +5.42%. Year to date, VYM is up 13.24% versus a gain of 2.12% for XB.

Over three years, VYM compounded at +16.97% per year against +7.91% for XB. Across the full 4-year window we track, VYM has the edge at +6.96% annualized vs +6.04%. 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 7.5% for XB. 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 -9.3% for XB. 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 0.81. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

VYM charges 0.04% per year while XB charges 0.30%. On a $10,000 position that is $4 vs $30 annually, a gap of $26 per year that compounds over a long holding period. On income, VYM currently yields 2.86% against 7.10% for XB.

Holdings Overlap

0.0%overlap

VYM and XB share 0 holdings out of 1050 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 XB?

VYM has an expense ratio of 0.04% while XB charges 0.30%. VYM is the cheaper option. On a $10,000 investment, that is $26 per year of difference.

Which performed better, VYM or XB?

Over the past year VYM returned +23.76% vs +5.42% for XB, so VYM leads on 1-year performance. Over the longest common window we track (4 years), VYM annualized +6.96% vs +6.04% for XB. Past performance does not guarantee future results.

Which is riskier, VYM or XB?

VYM has been the more volatile fund at 14.6% annualized versus 7.5% for XB. Worst drawdown: VYM -58.8% vs XB -9.3%.

Should I hold both VYM and XB?

VYM and XB have a monthly-return correlation of 0.81, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between VYM and XB?

VYM and XB share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1050 unique securities.

Which pays a higher dividend, VYM or XB?

VYM yields 2.86% while XB yields 7.10%, so XB currently pays the higher dividend yield.

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