TFNS 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

MetricTFNSVYMWinner
Expense Ratio0.44%0.04%
AUM-$79.0B
Dividend Yield-2.86%
Holdings347568
YTD Return+7.12%+13.82%
1Y Return+16.25%+24.08%
3Y Return (annualized)-+17.72%
5Y Return (annualized)-+12.13%
Volatility (annualized)11.9%14.6%
Max Drawdown-14.0%-58.8%
Fund FamilyT.Rowe PriceVanguard (US)
CategoryEquityEquity
InceptionJun 11, 2025Nov 10, 2006

TFNS vs VYM Performance

T. Rowe Price Financials ETF (TFNS) is a ETF from T.Rowe Price and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year TFNS returned +16.25% while VYM returned +24.08%. Year to date, TFNS is up 7.12% versus a gain of 13.82% for VYM.

Risk: Volatility and Drawdowns

VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 11.9% for TFNS. 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 -14.0% for TFNS 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 0.33. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

TFNS charges 0.44% per year while VYM charges 0.04%. On a $10,000 position that is $44 vs $4 annually, a gap of $40 per year that compounds over a long holding period.

Holdings Overlap

0.0%overlap

TFNS 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, TFNS or VYM?

TFNS has an expense ratio of 0.44% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $40 per year of difference.

Which performed better, TFNS or VYM?

Over the past year TFNS returned +16.25% vs +24.08% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (1 years), TFNS annualized +16.15% vs +6.98% for VYM. Past performance does not guarantee future results.

Which is riskier, TFNS or VYM?

VYM has been the more volatile fund at 14.6% annualized versus 11.9% for TFNS. Worst drawdown: TFNS -14.0% vs VYM -58.8%.

Should I hold both TFNS and VYM?

TFNS and VYM have a monthly-return correlation of 0.33, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between TFNS and VYM?

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

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