Quick Verdict

VYM has a lower expense ratio. CTEF delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.

Lower Fees: VYMHigher Returns: CTEFMore Diversified: VYM

Side-by-Side Comparison

MetricCTEFVYMWinner
Expense Ratio0.45%0.04%
AUM$646M$79.0B
Dividend Yield0.05%2.86%
Holdings45568
YTD Return+31.53%+15.80%
1Y Return+59.16%+26.12%
3Y Return (annualized)-+18.25%
5Y Return (annualized)-+12.51%
Volatility (annualized)22.8%14.6%
Max Drawdown-15.0%-58.8%
Fund FamilyCastellan ETFsVanguard (US)
CategoryEquityEquity
InceptionJun 17, 2025Nov 10, 2006

CTEF vs VYM Performance

Castellan Targeted Equity ETF (CTEF) is a ETF from Castellan ETFs and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year CTEF returned +59.16% while VYM returned +26.12%. Year to date, CTEF is up 31.53% versus a gain of 15.80% for VYM.

Risk: Volatility and Drawdowns

CTEF has been the more volatile fund, with annualized monthly volatility of 22.8% 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 -15.0% for CTEF 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 0.52. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

CTEF charges 0.45% per year while VYM charges 0.04%. On a $10,000 position that is $45 vs $4 annually, a gap of $41 per year that compounds over a long holding period. On income, CTEF currently yields 0.05% against 2.86% for VYM.

Holdings Overlap

0.2%overlap

CTEF and VYM share 3 holdings out of 578 unique holdings combined, representing a 0.2% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in CTEFWeight in VYMDifference
TPR4.50%0.14%4.36%
VIRT4.36%0.01%4.35%
BFH4.22%0.01%4.21%

Frequently Asked Questions

Which is cheaper, CTEF or VYM?

CTEF has an expense ratio of 0.45% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $41 per year of difference.

Which performed better, CTEF or VYM?

Over the past year CTEF returned +59.16% vs +26.12% for VYM, so CTEF leads on 1-year performance. Over the longest common window we track (1 years), CTEF annualized +66.72% vs +7.07% for VYM. Past performance does not guarantee future results.

Which is riskier, CTEF or VYM?

CTEF has been the more volatile fund at 22.8% annualized versus 14.6% for VYM. Worst drawdown: CTEF -15.0% vs VYM -58.8%.

Should I hold both CTEF and VYM?

CTEF and VYM have a monthly-return correlation of 0.52, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between CTEF and VYM?

CTEF and VYM share 3 common holdings with a 0.2% weight overlap. Combined, they hold 578 unique securities.

Which pays a higher dividend, CTEF or VYM?

CTEF yields 0.05% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.

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