TAFI vs VYM
AB Tax Aware Short Duration Municipal ETF vs Vanguard High Dividend Yield ETF
Which is better, TAFI or VYM?
Municipal Bond against Large Cap Value.
VYM has a lower expense ratio. VYM led over 1Y, 3Y and the full window.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | TAFI | VYM |
|---|---|---|
| Expense Ratio | 0.27% | 0.04%Best |
| AUM | $1.4B | $81.6B |
| Dividend Yield | 3.12% | 2.22% |
| Holdings | 711 | 613 |
| YTD Return | +0.39% | +11.47%Best |
| 1Y Return | +0.87% | +15.94%Best |
| 3Y Return (annualized) | +3.43% | +18.03%Best |
| 5Y Return (annualized) | - | +12.35% |
| Volatility (annualized) | 2.3%Best | 12.8% |
| Max Drawdown | -1.9%Best | -14.5% |
| $10,000 over 4 years | $11,264 | $17,345Best |
| Fund Family | AllianceBernstein L.P. | Vanguard (US) |
| Category | Tax Preferred | Equity |
| Style | Municipal Bond | Large Cap Value |
| Inception | Sep 13, 2022 | Nov 10, 2006 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown, and the $10,000 over 4 years row, are measured over the window both funds cover: Sep 16, 2022 to Sep 21, 2026 (4 years).
TAFI vs VYM growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 4 years both funds cover.
TAFI vs VYM Performance
AB Tax Aware Short Duration Municipal ETF (TAFI) is an ETF from AllianceBernstein L.P. and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year TAFI returned +0.87% while VYM returned +15.94%. Year to date, TAFI is up 0.39% versus a gain of 11.47% for VYM.
Over three years, TAFI compounded at +3.43% per year against +18.03% for VYM. Across the full 4-year window we track, VYM has the edge at +14.76% annualized vs +3.02%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 12.8% compared with 2.3% for TAFI. 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 -1.9% for TAFI and -14.5% for VYM. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.58. They move together some of the time, and apart the rest.
Fees and Cost Over Time
TAFI charges 0.27% per year while VYM charges 0.04%. On a $10,000 position that is $27 vs $4 annually, a gap of $23 per year that compounds over a long holding period. On income, TAFI currently yields 3.12% against 2.22% for VYM.
Holdings Overlap
At least 0.9% of VYM's money is in holdings TAFI also owns.
Stated as a floor: for TAFI, our book for it covers 25.8% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
We cannot see either book well enough to say how much of this pair is duplicated.
1 positions in common, counted across the 180 positions we hold weights for in TAFI and 557 in VYM, against full books of 711 and 613.
Top Shared Holdings
| Stock | Weight in TAFI | Weight in VYM | Difference |
|---|---|---|---|
| CCitigroup Inc V/R /Perp | 0.01% | 0.89% | 0.88% |
You are not choosing between two funds in isolation.
Whichever of TAFI and VYM you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, TAFI or VYM?
TAFI has an expense ratio of 0.27% while VYM charges 0.04%. VYM is the cheaper option, by $23 a year on a $10,000 investment.
Which performed better, TAFI or VYM?
Over the past year TAFI returned +0.87% vs +15.94% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (4 years), TAFI annualized +3.02% vs +14.76% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, TAFI or VYM?
VYM has been the more volatile fund at 12.8% annualized versus 2.3% for TAFI. Worst drawdown: TAFI -1.9% vs VYM -14.5%.
Should I hold both TAFI and VYM?
TAFI and VYM have a monthly-return correlation of 0.58, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, TAFI or VYM?
TAFI yields 3.12% while VYM yields 2.22%, so TAFI currently pays the higher dividend yield.
Is VYM better than TAFI?
VYM has a lower expense ratio. VYM led over 1Y, 3Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.