TDI vs VYM

Quick Verdict

VYM has a lower expense ratio. TDI delivered stronger 1-year returns. VYM offers more diversification with 568 holdings.

Lower Fees: VYMHigher Returns: TDIMore Diversified: VYM

Side-by-Side Comparison

MetricTDIVYMWinner
Expense Ratio0.65%0.04%
AUM$394M$79.0B
Dividend Yield1.68%2.86%
Holdings120568
YTD Return+20.46%+16.78%
1Y Return+34.24%+24.43%
3Y Return (annualized)-+18.60%
5Y Return (annualized)-+12.30%
Volatility (annualized)12.6%14.6%
Max Drawdown-15.0%-58.8%
Fund FamilyTouchstone InvestmentsVanguard (US)
CategoryEquityEquity
InceptionDec 8, 2023Nov 10, 2006

TDI vs VYM Performance

Touchstone Dynamic International ETF (TDI) is a ETF from Touchstone Investments and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year TDI returned +34.24% while VYM returned +24.43%. Year to date, TDI is up 20.46% versus a gain of 16.78% for VYM.

Risk: Volatility and Drawdowns

VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 12.6% for TDI. 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 -15.0% for TDI 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 0.69. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

TDI charges 0.65% per year while VYM charges 0.04%. On a $10,000 position that is $65 vs $4 annually, a gap of $61 per year that compounds over a long holding period. On income, TDI currently yields 1.68% against 2.86% for VYM.

Holdings Overlap

0.3%overlap

TDI and VYM share 3 holdings out of 663 unique holdings combined, representing a 0.3% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in TDIWeight in VYMDifference
SCCO1.43%0.08%1.35%
DTEG.N:BE1.21%0.13%1.08%
BAP:BM0.86%0.10%0.76%

Frequently Asked Questions

Which is cheaper, TDI or VYM?

TDI has an expense ratio of 0.65% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $61 per year of difference.

Which performed better, TDI or VYM?

Over the past year TDI returned +34.24% vs +24.43% for VYM, so TDI leads on 1-year performance. Over the longest common window we track (3 years), TDI annualized +28.07% vs +7.11% for VYM. Past performance does not guarantee future results.

Which is riskier, TDI or VYM?

VYM has been the more volatile fund at 14.6% annualized versus 12.6% for TDI. Worst drawdown: TDI -15.0% vs VYM -58.8%.

Should I hold both TDI and VYM?

TDI and VYM have a monthly-return correlation of 0.69, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between TDI and VYM?

TDI and VYM share 3 common holdings with a 0.3% weight overlap. Combined, they hold 663 unique securities.

Which pays a higher dividend, TDI or VYM?

TDI yields 1.68% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.

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