TBLD vs VYM
Thornburg Income Builder Opportunities Trust 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 613 holdings.
Side-by-Side Comparison
| Metric | TBLD | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 1.65% | 0.04% | |
| AUM | $758M | $81.6B | |
| Dividend Yield | 5.35% | 2.24% | |
| Holdings | 176 | 613 | |
| YTD Return | +14.31% | +14.57% | |
| 1Y Return | +19.25% | +21.08% | |
| 3Y Return (annualized) | +21.51% | +18.16% | |
| 5Y Return (annualized) | +9.55% | +12.00% | |
| Volatility (annualized) | 15.2% | 14.6% | |
| Max Drawdown | -33.6% | -58.8% | |
| Fund Family | Thornburg Investment Management | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jul 27, 2021 | Nov 10, 2006 |
TBLD vs VYM Performance
Thornburg Income Builder Opportunities Trust (TBLD) is a ETF from Thornburg Investment Management and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year TBLD returned +19.25% while VYM returned +21.08%. Year to date, TBLD is up 14.31% versus a gain of 14.57% for VYM.
Over three years, TBLD compounded at +21.51% per year against +18.16% for VYM; over five years the annualized figures are +9.55% and +12.00% respectively. Across the full 5-year window we track, TBLD has the edge at +9.82% annualized vs +6.99%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
TBLD has been the more volatile fund, with annualized monthly volatility of 15.2% 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 -33.6% for TBLD 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 0.73. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
TBLD charges 1.65% per year while VYM charges 0.04%. On a $10,000 position that is $165 vs $4 annually, a gap of $161 per year that compounds over a long holding period. On income, TBLD currently yields 5.35% against 2.24% for VYM.
Holdings Overlap
TBLD and VYM share 11 holdings out of 700 unique holdings combined, representing a 7.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, TBLD or VYM?
TBLD has an expense ratio of 1.65% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $161 per year of difference.
Which performed better, TBLD or VYM?
Over the past year TBLD returned +19.25% vs +21.08% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (5 years), TBLD annualized +9.82% vs +6.99% for VYM. Past performance does not guarantee future results.
Which is riskier, TBLD or VYM?
TBLD has been the more volatile fund at 15.2% annualized versus 14.6% for VYM. Worst drawdown: TBLD -33.6% vs VYM -58.8%.
Should I hold both TBLD and VYM?
TBLD and VYM have a monthly-return correlation of 0.73, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between TBLD and VYM?
TBLD and VYM share 11 common holdings with a 7.1% weight overlap. Combined, they hold 700 unique securities.
Which pays a higher dividend, TBLD or VYM?
TBLD yields 5.35% while VYM yields 2.24%, so TBLD currently pays the higher dividend yield.
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