TAXI vs VYM
Northern Trust Intermediate Tax-Exempt Bond ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. TAXI offers more diversification with 2,035 holdings.
Side-by-Side Comparison
| Metric | TAXI | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.05% | 0.04% | |
| AUM | $164M | $81.6B | |
| Dividend Yield | 2.27% | 2.24% | |
| Holdings | 2,035 | 616 | |
| YTD Return | +0.39% | +16.42% | |
| 1Y Return | +3.91% | +24.22% | |
| 3Y Return (annualized) | - | +19.03% | |
| 5Y Return (annualized) | - | +12.21% | |
| Volatility (annualized) | 3.3% | 14.6% | |
| Max Drawdown | -2.2% | -58.8% | |
| Fund Family | Northern Trust Asset Management | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Mar 1, 2025 | Nov 10, 2006 |
TAXI vs VYM Performance
Northern Trust Intermediate Tax-Exempt Bond ETF (TAXI) is a ETF from Northern Trust Asset Management and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year TAXI returned +3.91% while VYM returned +24.22%. Year to date, TAXI is up 0.39% versus a gain of 16.42% for VYM.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 3.3% for TAXI. 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 -2.2% for TAXI 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
TAXI charges 0.05% per year while VYM charges 0.04%. On a $10,000 position that is $5 vs $4 annually, a gap of $1 per year that compounds over a long holding period. On income, TAXI currently yields 2.27% against 2.24% for VYM.
Holdings Overlap
TAXI and VYM share 0 holdings out of 1118 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, TAXI or VYM?
TAXI has an expense ratio of 0.05% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, TAXI or VYM?
Over the past year TAXI returned +3.91% vs +24.22% for VYM, so VYM leads on 1-year performance. Past performance does not guarantee future results.
Which is riskier, TAXI or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 3.3% for TAXI. Worst drawdown: TAXI -2.2% vs VYM -58.8%.
Should I hold both TAXI and VYM?
TAXI 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 TAXI and VYM?
TAXI and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1118 unique securities.
Which pays a higher dividend, TAXI or VYM?
TAXI yields 2.27% while VYM yields 2.24%, so TAXI currently pays the higher dividend yield.
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