Two of the market's most popular income ETFs compared side-by-side. See which one fits your yield strategy.
What this means: Both BMY and MO fall intoTier 3: Specialty. This suggests they share a similar risk profile and volatility expectation.
| Metric | BMY | MO |
|---|---|---|
| Total Return (1Y) | -4.19% | 15.50% |
| NAV Change (1Y) | -8.59% | 9.36% |
| Max Drawdown | -32.50% | -22.06% |
| Beta | - | - |
* Returns include dividend reinvestment. Drawdown calculates peak-to-trough decline over trailing 12 months.
BMY (Bristol-Myers Squibb Company) is a sector-specific income fund managed by institutional managers. It focuses on generating income through strategic holdings. With significant capital, this fund has been operational since its inception.
Strategy: Concentrates on sector-specific opportunities, typically REITs, MLPs, or BDCs with higher baseline yields.
MO (Altria Group) is a sector-specific income fund managed by institutional managers. It focuses on generating income through strategic holdings. With significant capital, this fund has been operational since its inception.
Strategy: Concentrates on sector-specific opportunities, typically REITs, MLPs, or BDCs with higher baseline yields.
In the head-to-head battle of BMY vs MO, the choice depends on your specific goal. MO wins for Immediate Income with a 6.14% yield. However, MO is the better choice for Long-Term Growth due to superior total return performance.
Which fund is safer for retirement income? We analyze the yield sustainability and structural risk.
The Bottom Line Question: If you invest $100,000 today, how much cash will you actually receive each month? Here's the exact math:
BMY
Annual Yield: 4.40%
$366/mo
($4,397/year)
Frequency: quarterly
MO
Annual Yield: 6.14%
$512/mo
($6,141/year)
Frequency: quarterly
Income Gap: MO generates $1,744/year more than BMY on the same $100k investment.
Over 20 years, that's $34,885 in additional cash flow (before reinvestment).
Context Matters: Higher income doesn't always mean better investment. Review the "Yield Trap" and "Total Return" sections above—you want income that's sustainable, not just headline-grabbing.
Historical data reveals how these funds behave during market stress. MO has delivered a superior Total Return of 15.50% over the past year.
What is Max Drawdown? Max drawdown measures the largest peak-to-trough decline in portfolio value during a specific period. Unlike NAV change (which only looks at start vs. end), max drawdown captures the worst moment of pain an investor experienced.
Real-World Scenario: $100,000 Investment
MO (More Resilient)
Max Drawdown: -22.06%
-$22,060
Worst unrealized loss
BMY (More Volatile)
Max Drawdown: -32.50%
-$32,500
Worst unrealized loss
Protection Value: MO saved investors $10,440 in drawdown severity on a $100k position.
Why This Matters More Than Total Return: During bear markets or corrections, investors with lower max drawdown are:
⚖️ Capital Preservation Winner: MO demonstrated superior downside protection, making it the better choice for retirees who cannot afford steep temporary losses.
Every investor has a unique risk profile. Use our Portfolio Intelligence tool to see the impact of adding these ETFs to your holdings.