TBF vs VYM
ProShares Short 20+ Year Treasury vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | TBF | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.95% | 0.04% | |
| AUM | $86M | $79.0B | |
| Dividend Yield | 2.80% | 2.86% | |
| Holdings | 10 | 568 | |
| YTD Return | +5.57% | +15.80% | |
| 1Y Return | +6.88% | +26.12% | |
| 3Y Return (annualized) | +6.57% | +18.25% | |
| 5Y Return (annualized) | +11.85% | +12.51% | |
| Volatility (annualized) | 13.5% | 14.6% | |
| Max Drawdown | -71.2% | -58.8% | |
| Fund Family | ProShares | Vanguard (US) | |
| Category | Alternative | Equity | |
| Inception | Aug 18, 2009 | Nov 10, 2006 |
TBF vs VYM Performance
ProShares Short 20+ Year Treasury (TBF) is a ETF from ProShares and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year TBF returned +6.88% while VYM returned +26.12%. Year to date, TBF is up 5.57% versus a gain of 15.80% for VYM.
Over three years, TBF compounded at +6.57% per year against +18.25% for VYM; over five years the annualized figures are +11.85% and +12.51% respectively. Across the full 17-year window we track, VYM has the edge at +7.07% annualized vs -3.12%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 13.5% for TBF. 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 -71.2% for TBF 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 0.12. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
TBF charges 0.95% per year while VYM charges 0.04%. On a $10,000 position that is $95 vs $4 annually, a gap of $91 per year that compounds over a long holding period. On income, TBF currently yields 2.80% against 2.86% for VYM.
Holdings Overlap
TBF and VYM share 0 holdings out of 559 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, TBF or VYM?
TBF has an expense ratio of 0.95% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $91 per year of difference.
Which performed better, TBF or VYM?
Over the past year TBF returned +6.88% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (17 years), TBF annualized -3.12% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, TBF or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 13.5% for TBF. Worst drawdown: TBF -71.2% vs VYM -58.8%.
Should I hold both TBF and VYM?
TBF and VYM have a monthly-return correlation of 0.12, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between TBF and VYM?
TBF and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 559 unique securities.
Which pays a higher dividend, TBF or VYM?
TBF yields 2.80% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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