TCAF vs VYM

Quick Verdict

VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.

Lower Fees: VYMHigher Returns: VYMMore Diversified: VYM

Side-by-Side Comparison

MetricTCAFVYMWinner
Expense Ratio0.31%0.04%
AUM$7.9B$79.0B
Dividend Yield0.47%2.86%
Holdings347568
YTD Return+12.25%+15.20%
1Y Return+18.27%+25.56%
3Y Return (annualized)+18.44%+17.86%
5Y Return (annualized)-+12.35%
Volatility (annualized)12.3%14.6%
Max Drawdown-16.6%-58.8%
Fund FamilyT.Rowe PriceVanguard (US)
CategoryEquityEquity
InceptionJun 14, 2023Nov 10, 2006

TCAF vs VYM Performance

T. Rowe Price Capital Appreciation Equity ETF (TCAF) is a ETF from T.Rowe Price and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year TCAF returned +18.27% while VYM returned +25.56%. Year to date, TCAF is up 12.25% versus a gain of 15.20% for VYM.

Over three years, TCAF compounded at +18.44% per year against +17.86% for VYM. Across the full 3-year window we track, TCAF has the edge at +18.11% annualized vs +7.05%. 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 12.3% for TCAF. 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 -16.6% for TCAF 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 0.76. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

TCAF charges 0.31% per year while VYM charges 0.04%. On a $10,000 position that is $31 vs $4 annually, a gap of $27 per year that compounds over a long holding period. On income, TCAF currently yields 0.47% against 2.86% for VYM.

Holdings Overlap

0.0%overlap

TCAF and VYM share 0 holdings out of 720 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, TCAF or VYM?

TCAF has an expense ratio of 0.31% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $27 per year of difference.

Which performed better, TCAF or VYM?

Over the past year TCAF returned +18.27% vs +25.56% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (3 years), TCAF annualized +18.11% vs +7.05% for VYM. Past performance does not guarantee future results.

Which is riskier, TCAF or VYM?

VYM has been the more volatile fund at 14.6% annualized versus 12.3% for TCAF. Worst drawdown: TCAF -16.6% vs VYM -58.8%.

Should I hold both TCAF and VYM?

TCAF and VYM have a monthly-return correlation of 0.76, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between TCAF and VYM?

TCAF and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 720 unique securities.

Which pays a higher dividend, TCAF or VYM?

TCAF yields 0.47% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.

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