TAFM vs VYM
AB Tax-Aware Intermediate Municipal ETF vs Vanguard High Dividend Yield ETF
Which is better, TAFM or VYM?
Municipal Bond against Large Cap Value.
VYM has a lower expense ratio. VYM led over 1Y 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 | TAFM | VYM |
|---|---|---|
| Expense Ratio | 0.28% | 0.04%Best |
| AUM | $771M | $83.1B |
| Dividend Yield | 3.71% | 2.22% |
| Holdings | 1,404 | 608 |
| YTD Return | -3.63% | +11.95%Best |
| 1Y Return | -2.93% | +16.90%Best |
| 3Y Return (annualized) | - | +19.05% |
| 5Y Return (annualized) | - | +11.90% |
| Volatility (annualized) | 4.5%Best | 10.5% |
| Max Drawdown | -6.6%Best | -14.5% |
| $10,000 over 2.8 years | $10,460 | $15,551Best |
| Fund Family | AllianceBernstein L.P. | Vanguard (US) |
| Category | Tax Preferred | Equity |
| Style | Municipal Bond | Large Cap Value |
| Inception | Dec 13, 2023 | Nov 10, 2006 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown, and the $10,000 over 2.8 years row, are measured over the window both funds cover: Dec 13, 2023 to Oct 12, 2026 (2.8 years).
TAFM 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 2.8 years both funds cover.
TAFM vs VYM Performance
AB Tax-Aware Intermediate Municipal ETF (TAFM) is an ETF from AllianceBernstein L.P. and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year TAFM returned -2.93% while VYM returned +16.90%. Year to date, TAFM is down 3.63% versus a gain of 11.95% for VYM.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 10.5% compared with 4.5% for TAFM. 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 -6.6% for TAFM 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 0.63. They move together some of the time, and apart the rest.
Fees and Cost Over Time
TAFM charges 0.28% per year while VYM charges 0.04%. On a $10,000 position that is $28 vs $4 annually, a gap of $24 per year that compounds over a long holding period. On income, TAFM currently yields 3.71% against 2.22% for VYM.
Holdings Overlap
We hold position weights for 240 holdings in TAFM and 557 in VYM, totalling 31.8% and 99.2% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 240 positions we hold weights for in TAFM and 557 in VYM, against full books of 1,404 and 608.
You are not choosing between two funds in isolation.
Whichever of TAFM 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, TAFM or VYM?
TAFM has an expense ratio of 0.28% while VYM charges 0.04%. VYM is the cheaper option, by $24 a year on a $10,000 investment.
Which performed better, TAFM or VYM?
Over the past year TAFM returned -2.93% vs +16.90% for VYM, so VYM leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, TAFM or VYM?
VYM has been the more volatile fund at 10.5% annualized versus 4.5% for TAFM. Worst drawdown: TAFM -6.6% vs VYM -14.5%.
Should I hold both TAFM and VYM?
TAFM and VYM have a monthly-return correlation of 0.63, 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, TAFM or VYM?
TAFM yields 3.71% while VYM yields 2.22%, so TAFM currently pays the higher dividend yield.
Is VYM better than TAFM?
VYM has a lower expense ratio. VYM led over 1Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.