TAXE vs VYM
TAXE vs VYM
T. Rowe Price Intermediate Municipal Income ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | TAXE | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.24% | 0.04% | |
| AUM | $192M | $79.0B | |
| Dividend Yield | 3.58% | 2.86% | |
| Holdings | 347 | 568 | |
| YTD Return | +0.83% | +15.57% | |
| 1Y Return | +4.99% | +25.99% | |
| 3Y Return (annualized) | - | +18.02% | |
| 5Y Return (annualized) | - | +12.71% | |
| Volatility (annualized) | 3.5% | 14.6% | |
| Max Drawdown | -3.7% | -58.8% | |
| Fund Family | T.Rowe Price | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jul 10, 2024 | Nov 10, 2006 |
TAXE vs VYM Performance
T. Rowe Price Intermediate Municipal Income ETF (TAXE) is a ETF from T.Rowe Price and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year TAXE returned +4.99% while VYM returned +25.99%. Year to date, TAXE is up 0.83% versus a gain of 15.57% for VYM.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 3.5% for TAXE. 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 -3.7% for TAXE 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 0.65. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
TAXE charges 0.24% per year while VYM charges 0.04%. On a $10,000 position that is $24 vs $4 annually, a gap of $20 per year that compounds over a long holding period. On income, TAXE currently yields 3.58% against 2.86% for VYM.
Holdings Overlap
TAXE and VYM share 0 holdings out of 729 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, TAXE or VYM?
TAXE has an expense ratio of 0.24% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $20 per year of difference.
Which performed better, TAXE or VYM?
Over the past year TAXE returned +4.99% vs +25.99% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (2 years), TAXE annualized +4.01% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, TAXE or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 3.5% for TAXE. Worst drawdown: TAXE -3.7% vs VYM -58.8%.
Should I hold both TAXE and VYM?
TAXE and VYM have a monthly-return correlation of 0.65, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between TAXE and VYM?
TAXE and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 729 unique securities.
Which pays a higher dividend, TAXE or VYM?
TAXE yields 3.58% while VYM yields 2.86%, so TAXE currently pays the higher dividend yield.
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