LCF vs VYM
Touchstone US Large Cap Focused 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 616 holdings.
Side-by-Side Comparison
| Metric | LCF | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.56% | 0.04% | |
| AUM | $70M | $81.6B | |
| Dividend Yield | 0.51% | 2.24% | |
| Holdings | 46 | 616 | |
| YTD Return | +10.59% | +14.84% | |
| 1Y Return | +14.99% | +20.88% | |
| 3Y Return (annualized) | +17.82% | +18.34% | |
| 5Y Return (annualized) | - | +12.04% | |
| Volatility (annualized) | 14.1% | 14.6% | |
| Max Drawdown | -18.3% | -58.8% | |
| Fund Family | Touchstone Investments | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jul 27, 2022 | Nov 10, 2006 |
LCF vs VYM Performance
Touchstone US Large Cap Focused ETF (LCF) is a ETF from Touchstone Investments and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year LCF returned +14.99% while VYM returned +20.88%. Year to date, LCF is up 10.59% versus a gain of 14.84% for VYM.
Over three years, LCF compounded at +17.82% per year against +18.34% for VYM. Across the full 4-year window we track, LCF has the edge at +16.39% annualized vs +7.01%. 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 14.1% for LCF. 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 -18.3% for LCF 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
LCF charges 0.56% per year while VYM charges 0.04%. On a $10,000 position that is $56 vs $4 annually, a gap of $52 per year that compounds over a long holding period. On income, LCF currently yields 0.51% against 2.24% for VYM.
Holdings Overlap
LCF and VYM share 19 holdings out of 629 unique holdings combined, representing a 15.6% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, LCF or VYM?
LCF has an expense ratio of 0.56% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $52 per year of difference.
Which performed better, LCF or VYM?
Over the past year LCF returned +14.99% vs +20.88% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (4 years), LCF annualized +16.39% vs +7.01% for VYM. Past performance does not guarantee future results.
Which is riskier, LCF or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 14.1% for LCF. Worst drawdown: LCF -18.3% vs VYM -58.8%.
Should I hold both LCF and VYM?
LCF 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 LCF and VYM?
LCF and VYM share 19 common holdings with a 15.6% weight overlap. Combined, they hold 629 unique securities.
Which pays a higher dividend, LCF or VYM?
LCF yields 0.51% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.
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