TDTF vs VYM
Northern Trust iBoxx 5-Year Target Duration TIPS ETF vs Vanguard High Dividend Yield ETF
Which is better, TDTF or VYM?
VYM has been ahead.
VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | TDTF | VYM |
|---|---|---|
| Expense Ratio | 0.18% | 0.04%Best |
| AUM | $1.0B | $81.6B |
| Dividend Yield | 5.86% | 2.22% |
| Holdings | 18 | 613 |
| YTD Return | +0.86% | +13.75%Best |
| 1Y Return | +0.37% | +19.42%Best |
| 3Y Return (annualized) | +4.64% | +18.22%Best |
| 5Y Return (annualized) | +0.98% | +12.17%Best |
| Volatility (annualized) | 4.3%Best | 13.0% |
| Max Drawdown | -12.0%Best | -35.7% |
| $10,000 over 5 years | $10,500 | $17,758Best |
| Fund Family | Northern Trust Asset Management | Vanguard (US) |
| Category | Fixed Income | Equity |
| Style | - | Large Cap Value |
| Inception | Sep 19, 2011 | Nov 10, 2006 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Sep 22, 2011 to Sep 9, 2026 (15 years).
TDTF vs VYM growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.
TDTF vs VYM Performance
Northern Trust iBoxx 5-Year Target Duration TIPS ETF (TDTF) is an ETF from Northern Trust Asset Management and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year TDTF returned +0.37% while VYM returned +19.42%. Year to date, TDTF is up 0.86% versus a gain of 13.75% for VYM.
Over three years, TDTF compounded at +4.64% per year against +18.22% for VYM; over five years the annualized figures are +0.98% and +12.17% respectively. Across the full 15-year window we track, VYM has the edge at +10.99% annualized vs +1.32%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 13.0% compared with 4.3% for TDTF. 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 -12.0% for TDTF and -35.7% for VYM. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.35. They move together some of the time, and apart the rest.
Fees and Cost Over Time
TDTF charges 0.18% per year while VYM charges 0.04%. On a $10,000 position that is $18 vs $4 annually, a gap of $14 per year that compounds over a long holding period. On income, TDTF currently yields 5.86% against 2.22% for VYM.
Holdings Overlap
We hold position weights for 14 holdings in TDTF and 603 in VYM, totalling 82.7% and 99.5% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 14 positions we hold weights for in TDTF and 603 in VYM, against full books of 18 and 613.
You are not choosing between two funds in isolation.
Whichever of TDTF and VYM you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, TDTF or VYM?
TDTF has an expense ratio of 0.18% while VYM charges 0.04%. VYM is the cheaper option, by $14 a year on a $10,000 investment.
Which performed better, TDTF or VYM?
Over the past year TDTF returned +0.37% vs +19.42% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (15 years), TDTF annualized +1.32% vs +10.99% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, TDTF or VYM?
VYM has been the more volatile fund at 13.0% annualized versus 4.3% for TDTF. Worst drawdown: TDTF -12.0% vs VYM -35.7%.
Should I hold both TDTF and VYM?
TDTF and VYM have a monthly-return correlation of 0.35, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, TDTF or VYM?
TDTF yields 5.86% while VYM yields 2.22%, so TDTF currently pays the higher dividend yield.
Is VYM better than TDTF?
VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.