TFLR vs VYM
TFLR vs VYM
T. Rowe Price Floating Rate 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 | TFLR | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.61% | 0.04% | |
| AUM | $671M | $79.0B | |
| Dividend Yield | 6.79% | 2.86% | |
| Holdings | 347 | 568 | |
| YTD Return | +2.24% | +15.80% | |
| 1Y Return | +5.14% | +26.12% | |
| 3Y Return (annualized) | +7.21% | +18.25% | |
| 5Y Return (annualized) | - | +12.51% | |
| Volatility (annualized) | 2.5% | 14.6% | |
| Max Drawdown | -4.0% | -58.8% | |
| Fund Family | T.Rowe Price | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Nov 16, 2022 | Nov 10, 2006 |
TFLR vs VYM Performance
T. Rowe Price Floating Rate ETF (TFLR) is a ETF from T.Rowe Price and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year TFLR returned +5.14% while VYM returned +26.12%. Year to date, TFLR is up 2.24% versus a gain of 15.80% for VYM.
Over three years, TFLR compounded at +7.21% per year against +18.25% for VYM. Across the full 4-year window we track, TFLR has the edge at +7.59% annualized vs +7.07%. 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 2.5% for TFLR. 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 -4.0% for TFLR 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 0.44. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
TFLR charges 0.61% per year while VYM charges 0.04%. On a $10,000 position that is $61 vs $4 annually, a gap of $57 per year that compounds over a long holding period. On income, TFLR currently yields 6.79% against 2.86% for VYM.
Holdings Overlap
TFLR 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, TFLR or VYM?
TFLR has an expense ratio of 0.61% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $57 per year of difference.
Which performed better, TFLR or VYM?
Over the past year TFLR returned +5.14% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (4 years), TFLR annualized +7.59% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, TFLR or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 2.5% for TFLR. Worst drawdown: TFLR -4.0% vs VYM -58.8%.
Should I hold both TFLR and VYM?
TFLR and VYM have a monthly-return correlation of 0.44, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between TFLR and VYM?
TFLR and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 729 unique securities.
Which pays a higher dividend, TFLR or VYM?
TFLR yields 6.79% while VYM yields 2.86%, so TFLR currently pays the higher dividend yield.
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