TLT vs VYM
TLT vs VYM
iShares 20+ Year Treasury Bond 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 | TLT | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.15% | 0.04% | |
| AUM | $43.0B | $79.0B | |
| Dividend Yield | 4.53% | 2.86% | |
| Holdings | 48 | 568 | |
| YTD Return | -3.35% | +13.24% | |
| 1Y Return | -1.06% | +23.76% | |
| 3Y Return (annualized) | -1.44% | +16.97% | |
| 5Y Return (annualized) | -8.15% | +12.26% | |
| Volatility (annualized) | 13.4% | 14.6% | |
| Max Drawdown | -48.7% | -58.8% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jul 22, 2002 | Nov 10, 2006 |
TLT vs VYM Performance
iShares 20+ Year Treasury Bond ETF (TLT) is a ETF from iShares by BlackRock (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year TLT returned -1.06% while VYM returned +23.76%. Year to date, TLT is down 3.35% versus a gain of 13.24% for VYM.
Over three years, TLT compounded at -1.44% per year against +16.97% for VYM; over five years the annualized figures are -8.15% and +12.26% respectively. Across the full 20-year window we track, VYM has the edge at +6.96% annualized vs +0.79%. 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 13.4% for TLT. 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 -48.7% for TLT 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 -0.08. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
TLT charges 0.15% per year while VYM charges 0.04%. On a $10,000 position that is $15 vs $4 annually, a gap of $11 per year that compounds over a long holding period. On income, TLT currently yields 4.53% against 2.86% for VYM.
Holdings Overlap
TLT and VYM share 0 holdings out of 602 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, TLT or VYM?
TLT has an expense ratio of 0.15% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $11 per year of difference.
Which performed better, TLT or VYM?
Over the past year TLT returned -1.06% vs +23.76% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), TLT annualized +0.79% vs +6.96% for VYM. Past performance does not guarantee future results.
Which is riskier, TLT or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 13.4% for TLT. Worst drawdown: TLT -48.7% vs VYM -58.8%.
Should I hold both TLT and VYM?
TLT and VYM have a monthly-return correlation of -0.08, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between TLT and VYM?
TLT and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 602 unique securities.
Which pays a higher dividend, TLT or VYM?
TLT yields 4.53% while VYM yields 2.86%, so TLT currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.