VYM vs XBB
VYM vs XBB
Vanguard High Dividend Yield ETF vs BondBloxx BB Rated USD High Yield Corporate Bond ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. XBB offers more diversification with 790 holdings.
Side-by-Side Comparison
| Metric | VYM | XBB | Winner |
|---|---|---|---|
| Expense Ratio | 0.04% | 0.20% | |
| AUM | $79.0B | $531M | |
| Dividend Yield | 2.86% | 5.57% | |
| Holdings | 568 | 1,081 | |
| YTD Return | +13.24% | +1.22% | |
| 1Y Return | +23.76% | +4.77% | |
| 3Y Return (annualized) | +16.97% | +7.40% | |
| 5Y Return (annualized) | +12.26% | - | |
| Volatility (annualized) | 14.6% | 7.4% | |
| Max Drawdown | -58.8% | -8.9% | |
| Fund Family | Vanguard (US) | BondBloxx | |
| Category | Equity | Fixed Income | |
| Inception | Nov 10, 2006 | May 24, 2022 |
VYM vs XBB Performance
Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US) and BondBloxx BB Rated USD High Yield Corporate Bond ETF (XBB) is a ETF from BondBloxx. Over the past year VYM returned +23.76% while XBB returned +4.77%. Year to date, VYM is up 13.24% versus a gain of 1.22% for XBB.
Over three years, VYM compounded at +16.97% per year against +7.40% for XBB. Across the full 4-year window we track, VYM has the edge at +6.96% annualized vs +5.43%. 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 7.4% for XBB. 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 -8.9% for XBB. 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 0.77. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VYM charges 0.04% per year while XBB charges 0.20%. On a $10,000 position that is $4 vs $20 annually, a gap of $16 per year that compounds over a long holding period. On income, VYM currently yields 2.86% against 5.57% for XBB.
Holdings Overlap
VYM and XBB share 0 holdings out of 1348 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 XBB?
VYM has an expense ratio of 0.04% while XBB charges 0.20%. VYM is the cheaper option. On a $10,000 investment, that is $16 per year of difference.
Which performed better, VYM or XBB?
Over the past year VYM returned +23.76% vs +4.77% for XBB, so VYM leads on 1-year performance. Over the longest common window we track (4 years), VYM annualized +6.96% vs +5.43% for XBB. Past performance does not guarantee future results.
Which is riskier, VYM or XBB?
VYM has been the more volatile fund at 14.6% annualized versus 7.4% for XBB. Worst drawdown: VYM -58.8% vs XBB -8.9%.
Should I hold both VYM and XBB?
VYM and XBB have a monthly-return correlation of 0.77, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VYM and XBB?
VYM and XBB share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1348 unique securities.
Which pays a higher dividend, VYM or XBB?
VYM yields 2.86% while XBB yields 5.57%, so XBB currently pays the higher dividend yield.
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