VBCG vs. VYM

Last updated Jun 6, 2026

VBCG (Vanguard Target Maturity 2033 Corporate Bond ETF) and VYM (Vanguard High Dividend Yield ETF) are both exchange-traded funds - VBCG is a Corporate Bonds fund tracking the ICE 2033 Maturity US Corporate Constrained Index, while VYM is a Dividend fund tracking the FTSE High Dividend Yield Index. Both are passively managed. At a 0.47 correlation, their price movements are largely independent. VBCG charges 0.08%/yr vs 0.04%/yr for VYM.

Performance

VBCG vs. VYM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Target Maturity 2033 Corporate Bond ETF (VBCG) and Vanguard High Dividend Yield ETF (VYM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

VBCG

• 1D: -0.56%
• 1M: -0.75%
• YTD: —
• 6M: —
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

VYM

• 1D: -1.35%
• 1M: 0.82%
• YTD: 10.90%
• 6M: 10.34%
• 1Y: 25.21%
• 3Y*: 18.37%
• 5Y*: 11.16%
• 10Y*: 11.65%

*Multi-year figures are annualized to reflect compound growth (CAGR)

VBCG vs. VYM - Yearly Performance Comparison

	2026 (YTD)
VBCG Vanguard Target Maturity 2033 Corporate Bond ETF	1.02%
VYM Vanguard High Dividend Yield ETF	7.49%

Correlation

The correlation between VBCG and VYM is 0.47, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (All Time) Calculated using the full available price history since Mar 27, 2026	0.47

Return for Risk

VBCG vs. VYM — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

VYM

VYM Risk / Return Rank: 77
VYM Sharpe Ratio Rank: 77
VYM Sortino Ratio Rank: 79
VYM Omega Ratio Rank: 76
VYM Calmar Ratio Rank: 76
VYM Martin Ratio Rank: 76

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

VBCG vs. VYM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Target Maturity 2033 Corporate Bond ETF (VBCG) and Vanguard High Dividend Yield ETF (VYM). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Risk / return metrics aren't available yet — we need at least 12 months of trading data to calculate them.

Sharpe Ratios by Period

	VBCG	VYM	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	—	2.45	—
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.80	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.72	—
Sharpe Ratio (All Time) Calculated using the full available price history	1.19	0.51	+0.68

Drawdowns

VBCG vs. VYM - Drawdown Comparison

The maximum VBCG drawdown since its inception was -1.90%, smaller than the maximum VYM drawdown of -56.98%. Use the drawdown chart below to compare losses from any high point for VBCG and VYM.

Drawdown Indicators

	VBCG	VYM	Difference
Max Drawdown Largest peak-to-trough decline	-1.90%	-56.98%	+55.08%
Max Drawdown (1Y) Largest decline over 1 year	—	-6.69%	—
Max Drawdown (3Y) Largest decline over 3 years	—	-14.46%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-15.84%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-35.21%	—
Current Drawdown Current decline from peak	-1.06%	-1.82%	+0.76%
Average Drawdown Average peak-to-trough decline	-0.52%	-7.19%	+6.67%
Ulcer Index Depth and duration of drawdowns from previous peaks	—	1.78%	—

Volatility

Volatility by Period

	VBCG	VYM	Difference
Volatility (1M) Calculated over the trailing 1-month period	—	3.08%	—
Volatility (6M) Calculated over the trailing 6-month period	—	7.73%	—
Volatility (1Y) Calculated over the trailing 1-year period	4.58%	10.35%	-5.77%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.58%	13.97%	-9.39%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.58%	16.34%	-11.76%

VBCG vs. VYM - Expense Ratio Comparison

VBCG has a 0.08% expense ratio, which is higher than VYM's 0.04% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

VBCG vs. VYM - Dividend Comparison

VBCG's dividend yield for the trailing twelve months is around 0.84%, less than VYM's 2.22% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VBCG Vanguard Target Maturity 2033 Corporate Bond ETF	0.84%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
VYM Vanguard High Dividend Yield ETF	2.22%	2.44%	2.74%	3.12%	3.01%	2.76%	3.18%	3.03%	3.40%	2.80%	2.91%	3.22%

Frequently Asked Questions

Can I hold both VBCG and VYM in my portfolio?

VBCG and VYM have a correlation of 0.47, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, VBCG or VYM?

On fees, VYM is cheaper at 0.04% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, VBCG or VYM?

VYM is cheaper with a 0.04% expense ratio, compared with 0.08% for VBCG.

Which ETF pays a higher dividend yield, VBCG or VYM?

VYM has the higher dividend yield at 2.22%, compared with 0.84% for VBCG.

What is the main difference between VBCG and VYM?

VBCG is categorized as Corporate Bonds, while VYM is Dividend. VBCG tracks ICE 2033 Maturity US Corporate Constrained Index, while VYM tracks FTSE High Dividend Yield Index. Their fees differ too: 0.08% for VBCG and 0.04% for VYM.