TSI vs VYM
TSI vs VYM
TCW Strategic Income Fund Inc. 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 | TSI | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 1.03% | 0.04% | |
| AUM | - | $79.0B | |
| Dividend Yield | 6.21% | 2.86% | |
| Holdings | 746 | 568 | |
| YTD Return | -7.05% | +13.82% | |
| 1Y Return | -3.71% | +24.08% | |
| 3Y Return (annualized) | +5.96% | +17.72% | |
| 5Y Return (annualized) | +1.72% | +12.13% | |
| Volatility (annualized) | 18.3% | 14.6% | |
| Max Drawdown | -83.3% | -58.8% | |
| Fund Family | TCW Funds | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Mar 5, 1987 | Nov 10, 2006 |
TSI vs VYM Performance
TCW Strategic Income Fund Inc. (TSI) is a ETF from TCW Funds and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year TSI returned -3.71% while VYM returned +24.08%. Year to date, TSI is down 7.05% versus a gain of 13.82% for VYM.
Over three years, TSI compounded at +5.96% per year against +17.72% for VYM; over five years the annualized figures are +1.72% and +12.13% respectively. Across the full 20-year window we track, VYM has the edge at +6.98% annualized vs +0.20%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
TSI has been the more volatile fund, with annualized monthly volatility of 18.3% 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 -83.3% for TSI 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 0.27. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
TSI charges 1.03% per year while VYM charges 0.04%. On a $10,000 position that is $103 vs $4 annually, a gap of $99 per year that compounds over a long holding period. On income, TSI currently yields 6.21% against 2.86% for VYM.
Holdings Overlap
Frequently Asked Questions
Which is cheaper, TSI or VYM?
TSI has an expense ratio of 1.03% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $99 per year of difference.
Which performed better, TSI or VYM?
Over the past year TSI returned -3.71% vs +24.08% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), TSI annualized +0.20% vs +6.98% for VYM. Past performance does not guarantee future results.
Which is riskier, TSI or VYM?
TSI has been the more volatile fund at 18.3% annualized versus 14.6% for VYM. Worst drawdown: TSI -83.3% vs VYM -58.8%.
Should I hold both TSI and VYM?
TSI and VYM have a monthly-return correlation of 0.27, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between TSI and VYM?
TSI and VYM share 2 common holdings with a 0.3% weight overlap. Combined, they hold 803 unique securities.
Which pays a higher dividend, TSI or VYM?
TSI yields 6.21% while VYM yields 2.86%, so TSI currently pays the higher dividend yield.
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