TBT vs VYM
ProShares UltraShort 20+ Year Treasury ETF 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 568 holdings.
Side-by-Side Comparison
| Metric | TBT | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.93% | 0.04% | |
| AUM | $297M | $79.0B | |
| Dividend Yield | 2.78% | 2.86% | |
| Holdings | 10 | 568 | |
| YTD Return | +9.89% | +16.78% | |
| 1Y Return | +10.52% | +24.43% | |
| 3Y Return (annualized) | +7.27% | +18.60% | |
| 5Y Return (annualized) | +19.94% | +12.30% | |
| Volatility (annualized) | 28.1% | 14.6% | |
| Max Drawdown | -95.2% | -58.8% | |
| Fund Family | ProShares | Vanguard (US) | |
| Category | Alternative | Equity | |
| Inception | Apr 29, 2008 | Nov 10, 2006 |
TBT vs VYM Performance
ProShares UltraShort 20+ Year Treasury ETF (TBT) is a ETF from ProShares and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year TBT returned +10.52% while VYM returned +24.43%. Year to date, TBT is up 9.89% versus a gain of 16.78% for VYM.
Over three years, TBT compounded at +7.27% per year against +18.60% for VYM; over five years the annualized figures are +19.94% and +12.30% respectively. Across the full 18-year window we track, VYM has the edge at +7.11% annualized vs -9.62%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
TBT has been the more volatile fund, with annualized monthly volatility of 28.1% 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 -95.2% for TBT 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 0.08. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
TBT charges 0.93% per year while VYM charges 0.04%. On a $10,000 position that is $93 vs $4 annually, a gap of $89 per year that compounds over a long holding period. On income, TBT currently yields 2.78% against 2.86% for VYM.
Holdings Overlap
TBT 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, TBT or VYM?
TBT has an expense ratio of 0.93% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $89 per year of difference.
Which performed better, TBT or VYM?
Over the past year TBT returned +10.52% vs +24.43% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (18 years), TBT annualized -9.62% vs +7.11% for VYM. Past performance does not guarantee future results.
Which is riskier, TBT or VYM?
TBT has been the more volatile fund at 28.1% annualized versus 14.6% for VYM. Worst drawdown: TBT -95.2% vs VYM -58.8%.
Should I hold both TBT and VYM?
TBT and VYM have a monthly-return correlation of 0.08, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between TBT and VYM?
TBT and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 559 unique securities.
Which pays a higher dividend, TBT or VYM?
TBT yields 2.78% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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