TAN vs VYM
Invesco Solar ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. TAN delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | TAN | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.70% | 0.04% | |
| AUM | $1.5B | $79.0B | |
| Dividend Yield | 0.00% | 2.86% | |
| Holdings | 42 | 568 | |
| YTD Return | +1.41% | +16.53% | |
| 1Y Return | +41.89% | +25.03% | |
| 3Y Return (annualized) | -5.48% | +18.54% | |
| 5Y Return (annualized) | -9.35% | +12.25% | |
| Volatility (annualized) | 43.7% | 14.6% | |
| Max Drawdown | -95.3% | -58.8% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Apr 15, 2008 | Nov 10, 2006 |
TAN vs VYM Performance
Invesco Solar ETF (TAN) is a ETF from Invesco (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year TAN returned +41.89% while VYM returned +25.03%. Year to date, TAN is up 1.41% versus a gain of 16.53% for VYM.
Over three years, TAN compounded at -5.48% per year against +18.54% for VYM; over five years the annualized figures are -9.35% and +12.25% respectively. Across the full 18-year window we track, VYM has the edge at +7.10% annualized vs -6.87%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
TAN has been the more volatile fund, with annualized monthly volatility of 43.7% 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 -95.3% for TAN 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 0.54. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
TAN charges 0.70% per year while VYM charges 0.04%. On a $10,000 position that is $70 vs $4 annually, a gap of $66 per year that compounds over a long holding period. On income, TAN currently yields 0.00% against 2.86% for VYM.
Holdings Overlap
Frequently Asked Questions
Which is cheaper, TAN or VYM?
TAN has an expense ratio of 0.70% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $66 per year of difference.
Which performed better, TAN or VYM?
Over the past year TAN returned +41.89% vs +25.03% for VYM, so TAN leads on 1-year performance. Over the longest common window we track (18 years), TAN annualized -6.87% vs +7.10% for VYM. Past performance does not guarantee future results.
Which is riskier, TAN or VYM?
TAN has been the more volatile fund at 43.7% annualized versus 14.6% for VYM. Worst drawdown: TAN -95.3% vs VYM -58.8%.
Should I hold both TAN and VYM?
TAN and VYM have a monthly-return correlation of 0.54, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between TAN and VYM?
TAN and VYM share 2 common holdings with a 0.0% weight overlap. Combined, they hold 591 unique securities.
Which pays a higher dividend, TAN or VYM?
TAN yields 0.00% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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