TAGG vs VYM
TAGG vs VYM
T Rowe Price QM US Bond ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. TAGG offers more diversification with 1212 holdings.
Side-by-Side Comparison
| Metric | TAGG | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.08% | 0.04% | |
| AUM | $2.3B | $79.0B | |
| Dividend Yield | 4.57% | 2.86% | |
| Holdings | 1,595 | 568 | |
| YTD Return | +0.07% | +15.57% | |
| 1Y Return | +2.53% | +25.99% | |
| 3Y Return (annualized) | +4.41% | +18.02% | |
| 5Y Return (annualized) | - | +12.71% | |
| Volatility (annualized) | 6.6% | 14.6% | |
| Max Drawdown | -17.3% | -58.8% | |
| Fund Family | T.Rowe Price | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Sep 28, 2021 | Nov 10, 2006 |
TAGG vs VYM Performance
T Rowe Price QM US Bond ETF (TAGG) is a ETF from T.Rowe Price and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year TAGG returned +2.53% while VYM returned +25.99%. Year to date, TAGG is up 0.07% versus a gain of 15.57% for VYM.
Over three years, TAGG compounded at +4.41% per year against +18.02% for VYM. Across the full 5-year window we track, VYM has the edge at +7.07% annualized vs +0.14%. 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 6.6% for TAGG. 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 -17.3% for TAGG and -58.8% for VYM. 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 0.55. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
TAGG charges 0.08% per year while VYM charges 0.04%. On a $10,000 position that is $8 vs $4 annually, a gap of $4 per year that compounds over a long holding period. On income, TAGG currently yields 4.57% against 2.86% for VYM.
Holdings Overlap
TAGG and VYM share 0 holdings out of 1770 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, TAGG or VYM?
TAGG has an expense ratio of 0.08% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $4 per year of difference.
Which performed better, TAGG or VYM?
Over the past year TAGG returned +2.53% vs +25.99% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (5 years), TAGG annualized +0.14% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, TAGG or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 6.6% for TAGG. Worst drawdown: TAGG -17.3% vs VYM -58.8%.
Should I hold both TAGG and VYM?
TAGG and VYM have a monthly-return correlation of 0.55, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between TAGG and VYM?
TAGG and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1770 unique securities.
Which pays a higher dividend, TAGG or VYM?
TAGG yields 4.57% while VYM yields 2.86%, so TAGG currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.