TCAL vs VYM
T. Rowe Price Capital Appreciation Premium Income 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 613 holdings.
Side-by-Side Comparison
| Metric | TCAL | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.34% | 0.04% | |
| AUM | $313M | $81.6B | |
| Dividend Yield | 11.52% | 2.24% | |
| Holdings | 488 | 613 | |
| YTD Return | +2.72% | +14.87% | |
| 1Y Return | +3.12% | +21.39% | |
| 3Y Return (annualized) | - | +18.69% | |
| 5Y Return (annualized) | - | +11.98% | |
| Volatility (annualized) | 6.6% | 14.5% | |
| Max Drawdown | -7.2% | -58.8% | |
| Fund Family | T.Rowe Price | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Mar 26, 2025 | Nov 10, 2006 |
TCAL vs VYM Performance
T. Rowe Price Capital Appreciation Premium Income ETF (TCAL) is a ETF from T.Rowe Price and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year TCAL returned +3.12% while VYM returned +21.39%. Year to date, TCAL is up 2.72% versus a gain of 14.87% for VYM.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.5% compared with 6.6% for TCAL. 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 -7.2% for TCAL 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
TCAL charges 0.34% per year while VYM charges 0.04%. On a $10,000 position that is $34 vs $4 annually, a gap of $30 per year that compounds over a long holding period. On income, TCAL currently yields 11.52% against 2.24% for VYM.
Holdings Overlap
TCAL and VYM share 50 holdings out of 657 unique holdings combined, representing a 22.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, TCAL or VYM?
TCAL has an expense ratio of 0.34% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $30 per year of difference.
Which performed better, TCAL or VYM?
Over the past year TCAL returned +3.12% vs +21.39% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (1 years), TCAL annualized +3.22% vs +7.00% for VYM. Past performance does not guarantee future results.
Which is riskier, TCAL or VYM?
VYM has been the more volatile fund at 14.5% annualized versus 6.6% for TCAL. Worst drawdown: TCAL -7.2% vs VYM -58.8%.
Should I hold both TCAL and VYM?
TCAL 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 TCAL and VYM?
TCAL and VYM share 50 common holdings with a 22.1% weight overlap. Combined, they hold 657 unique securities.
Which pays a higher dividend, TCAL or VYM?
TCAL yields 11.52% while VYM yields 2.24%, so TCAL currently pays the higher dividend yield.
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