TBUX vs VYM
TBUX vs VYM
T Rowe Price Ultra Short-Term Bond 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 | TBUX | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.17% | 0.04% | |
| AUM | $1.3B | $79.0B | |
| Dividend Yield | 4.49% | 2.86% | |
| Holdings | 622 | 568 | |
| YTD Return | +2.36% | +13.82% | |
| 1Y Return | +4.45% | +24.08% | |
| 3Y Return (annualized) | +5.54% | +17.72% | |
| 5Y Return (annualized) | - | +12.13% | |
| Volatility (annualized) | 1.1% | 14.6% | |
| Max Drawdown | -1.8% | -58.8% | |
| Fund Family | T.Rowe Price | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Sep 28, 2021 | Nov 10, 2006 |
TBUX vs VYM Performance
T Rowe Price Ultra Short-Term Bond ETF (TBUX) is a ETF from T.Rowe Price and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year TBUX returned +4.45% while VYM returned +24.08%. Year to date, TBUX is up 2.36% versus a gain of 13.82% for VYM.
Over three years, TBUX compounded at +5.54% per year against +17.72% for VYM. Across the full 5-year window we track, VYM has the edge at +6.98% annualized vs +4.03%. 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 1.1% for TBUX. 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 -1.8% for TBUX 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 0.34. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
TBUX charges 0.17% per year while VYM charges 0.04%. On a $10,000 position that is $17 vs $4 annually, a gap of $13 per year that compounds over a long holding period. On income, TBUX currently yields 4.49% against 2.86% for VYM.
Holdings Overlap
TBUX and VYM share 0 holdings out of 920 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, TBUX or VYM?
TBUX has an expense ratio of 0.17% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $13 per year of difference.
Which performed better, TBUX or VYM?
Over the past year TBUX returned +4.45% vs +24.08% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (5 years), TBUX annualized +4.03% vs +6.98% for VYM. Past performance does not guarantee future results.
Which is riskier, TBUX or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 1.1% for TBUX. Worst drawdown: TBUX -1.8% vs VYM -58.8%.
Should I hold both TBUX and VYM?
TBUX and VYM have a monthly-return correlation of 0.34, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between TBUX and VYM?
TBUX and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 920 unique securities.
Which pays a higher dividend, TBUX or VYM?
TBUX yields 4.49% while VYM yields 2.86%, so TBUX currently pays the higher dividend yield.
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