THRO vs VYM
THRO vs VYM
iShares US Thematic Rotation Active 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 | THRO | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.57% | 0.04% | |
| AUM | $6.4B | $79.0B | |
| Dividend Yield | 0.25% | 2.86% | |
| Holdings | 245 | 568 | |
| YTD Return | +13.99% | +15.20% | |
| 1Y Return | +21.62% | +25.56% | |
| 3Y Return (annualized) | +22.50% | +17.86% | |
| 5Y Return (annualized) | - | +12.35% | |
| Volatility (annualized) | 17.8% | 14.6% | |
| Max Drawdown | -26.5% | -58.8% | |
| Fund Family | BlackRock, Inc. (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Dec 14, 2021 | Nov 10, 2006 |
THRO vs VYM Performance
iShares US Thematic Rotation Active ETF (THRO) is a ETF from BlackRock, Inc. (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year THRO returned +21.62% while VYM returned +25.56%. Year to date, THRO is up 13.99% versus a gain of 15.20% for VYM.
Over three years, THRO compounded at +22.50% per year against +17.86% for VYM. Across the full 5-year window we track, THRO has the edge at +13.66% annualized vs +7.05%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
THRO has been the more volatile fund, with annualized monthly volatility of 17.8% compared with 14.6% for VYM. 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 -26.5% for THRO 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 0.80. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
THRO charges 0.57% per year while VYM charges 0.04%. On a $10,000 position that is $57 vs $4 annually, a gap of $53 per year that compounds over a long holding period. On income, THRO currently yields 0.25% against 2.86% for VYM.
Holdings Overlap
THRO and VYM share 85 holdings out of 714 unique holdings combined, representing a 26.9% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in THRO | Weight in VYM | Difference |
|---|---|---|---|
| AVGO | 2.89% | 6.47% | 3.58% |
| JPM:US | 2.92% | 3.36% | 0.44% |
| WMT | 2.41% | 2.44% | 0.03% |
| JNJ | Pro | Pro | Pro |
| CAT | Pro | Pro | Pro |
| XOM | Pro | Pro | Pro |
| PG | Pro | Pro | Pro |
| CSCO | Pro | Pro | Pro |
| UNH | Pro | Pro | Pro |
| BAC | Pro | Pro | Pro |
See all 10 holdings THRO shares with VYM Exact weights in each fund and the difference, for every overlapping position. Get FundXLS Pro: $29/moFirst 500 subscribers, then $49/mo. Cancel anytime. | |||
Frequently Asked Questions
Which is cheaper, THRO or VYM?
THRO has an expense ratio of 0.57% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $53 per year of difference.
Which performed better, THRO or VYM?
Over the past year THRO returned +21.62% vs +25.56% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (5 years), THRO annualized +13.66% vs +7.05% for VYM. Past performance does not guarantee future results.
Which is riskier, THRO or VYM?
THRO has been the more volatile fund at 17.8% annualized versus 14.6% for VYM. Worst drawdown: THRO -26.5% vs VYM -58.8%.
Should I hold both THRO and VYM?
THRO and VYM have a monthly-return correlation of 0.80, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between THRO and VYM?
THRO and VYM share 85 common holdings with a 26.9% weight overlap. Combined, they hold 714 unique securities.
Which pays a higher dividend, THRO or VYM?
THRO yields 0.25% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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