TDVG 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

MetricTDVGVYMWinner
Expense Ratio0.50%0.04%
AUM$1.4B$79.0B
Dividend Yield0.99%2.86%
Holdings92568
YTD Return+12.52%+15.45%
1Y Return+20.86%+26.05%
3Y Return (annualized)+15.65%+17.96%
5Y Return (annualized)+10.32%+12.54%
Volatility (annualized)13.6%14.6%
Max Drawdown-19.2%-58.8%
Fund FamilyT.Rowe PriceVanguard (US)
CategoryEquityEquity
InceptionAug 4, 2020Nov 10, 2006

TDVG vs VYM Performance

T. Rowe Price Dividend Growth ETF (TDVG) is a ETF from T.Rowe Price and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year TDVG returned +20.86% while VYM returned +26.05%. Year to date, TDVG is up 12.52% versus a gain of 15.45% for VYM.

Over three years, TDVG compounded at +15.65% per year against +17.96% for VYM; over five years the annualized figures are +10.32% and +12.54% respectively. Across the full 6-year window we track, TDVG has the edge at +13.49% annualized vs +7.06%. 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 13.6% for TDVG. 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 -19.2% for TDVG 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 0.92. They move almost in lockstep, so holding both mostly duplicates the same exposure.

Fees and Cost Over Time

TDVG charges 0.50% per year while VYM charges 0.04%. On a $10,000 position that is $50 vs $4 annually, a gap of $46 per year that compounds over a long holding period. On income, TDVG currently yields 0.99% against 2.86% for VYM.

Holdings Overlap

35.9%overlap

TDVG and VYM share 53 holdings out of 601 unique holdings combined, representing a 35.9% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in TDVGWeight in VYMDifference
AVGO3.68%6.47%2.79%
JPM3.08%3.36%0.28%
XOM1.55%2.83%1.28%
WMTProProPro
BACProProPro
JNJProProPro
ABBVProProPro
HDProProPro
UNHProProPro
CSCOProProPro
See all 10 holdings TDVG shares with VYM
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Frequently Asked Questions

Which is cheaper, TDVG or VYM?

TDVG has an expense ratio of 0.50% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $46 per year of difference.

Which performed better, TDVG or VYM?

Over the past year TDVG returned +20.86% vs +26.05% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (6 years), TDVG annualized +13.49% vs +7.06% for VYM. Past performance does not guarantee future results.

Which is riskier, TDVG or VYM?

VYM has been the more volatile fund at 14.6% annualized versus 13.6% for TDVG. Worst drawdown: TDVG -19.2% vs VYM -58.8%.

Should I hold both TDVG and VYM?

TDVG and VYM have a monthly-return correlation of 0.92, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.

What is the holdings overlap between TDVG and VYM?

TDVG and VYM share 53 common holdings with a 35.9% weight overlap. Combined, they hold 601 unique securities.

Which pays a higher dividend, TDVG or VYM?

TDVG yields 0.99% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.

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