From 24/7 Wall St. · Ryne Mauck · · 1m 10s
VYM Investors Should Check BALI
VYM holders could gain 2.2% yearly returns with BlackRock's active income ETF.
In brief
VYM holders could gain 2.2% yearly returns with BlackRock's active income ETF. Vanguard's VYM and BlackRock's BALI both target large U.S. income, but BALI outperformed VYM by 2.2 percentage points over the past year with a shorter track record. Originally reported by 24/7 Wall St..
VYM vs BALI Returns
Vanguard's VYM earned 17.7% total return over the past year while BlackRock's BALI returned 19.9%.
Both Returns Assume Reinvested Distributions
The figures count every distribution as reinvested in the fund, not cash taken by investors.
BALI Leads in Every Recent Window
BALI outperformed VYM in the past month, year-to-date, and full year with consistent gaps.
BALI's Short Track Record
BALI started on September 28, 2023, with no five-year or ten-year comparison to VYM.
Different Income Strategies
VYM uses a rules-based screen for dividend payers while BALI is actively managed by BlackRock.
Tax Implications for Switching
Swapping VYM for BALI in a tax-advantaged account triggers no immediate tax, but taxable accounts face capital gains.
Who Fits Which ETF
Long-horizon investors should stick with VYM; those seeking recent outperformance may try BALI.
At a glance
Vanguard's VYM and BlackRock's BALI both target large U.S. income, but BALI outperformed VYM by 2.2 percentage points over the past year with a shorter track record.
