MMKT vs VYM

Quick Verdict

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

Lower Fees: VYMHigher Returns: VYMMore Diversified: VYM

Side-by-Side Comparison

MetricMMKTVYMWinner
Expense Ratio0.20%0.04%
AUM$73M$79.0B
Dividend Yield3.69%2.86%
Holdings31568
YTD Return+1.98%+16.78%
1Y Return+3.58%+24.43%
3Y Return (annualized)-+18.60%
5Y Return (annualized)-+12.30%
Volatility (annualized)0.2%14.6%
Max Drawdown-0.0%-58.8%
Fund FamilyTexas CapitalVanguard (US)
CategoryMoney MarketEquity
InceptionSep 13, 2024Nov 10, 2006

MMKT vs VYM Performance

Texas Capital Government Money Market ETF (MMKT) is a ETF from Texas Capital and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year MMKT returned +3.58% while VYM returned +24.43%. Year to date, MMKT is up 1.98% versus a gain of 16.78% for VYM.

Risk: Volatility and Drawdowns

VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 0.2% for MMKT. 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 -0.0% for MMKT 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 -0.22. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

MMKT charges 0.20% per year while VYM charges 0.04%. On a $10,000 position that is $20 vs $4 annually, a gap of $16 per year that compounds over a long holding period. On income, MMKT currently yields 3.69% against 2.86% for VYM.

Holdings Overlap

0.0%overlap

MMKT and VYM share 0 holdings out of 562 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, MMKT or VYM?

MMKT has an expense ratio of 0.20% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $16 per year of difference.

Which performed better, MMKT or VYM?

Over the past year MMKT returned +3.58% vs +24.43% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (2 years), MMKT annualized +3.92% vs +7.11% for VYM. Past performance does not guarantee future results.

Which is riskier, MMKT or VYM?

VYM has been the more volatile fund at 14.6% annualized versus 0.2% for MMKT. Worst drawdown: MMKT -0.0% vs VYM -58.8%.

Should I hold both MMKT and VYM?

MMKT and VYM have a monthly-return correlation of -0.22, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between MMKT and VYM?

MMKT and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 562 unique securities.

Which pays a higher dividend, MMKT or VYM?

MMKT yields 3.69% while VYM yields 2.86%, so MMKT currently pays the higher dividend yield.

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