TDTT vs VYM
FlexShares iBoxx 3 Year Target Duration TIPS Index Fund 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 558 holdings.
Side-by-Side Comparison
| Metric | TDTT | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.04% | |
| AUM | $2.5B | $79.0B | |
| Dividend Yield | 4.57% | 2.86% | |
| Holdings | 24 | 568 | |
| YTD Return | +0.74% | +16.53% | |
| 1Y Return | +1.68% | +25.03% | |
| 3Y Return (annualized) | +4.71% | +18.54% | |
| 5Y Return (annualized) | +2.43% | +12.25% | |
| Volatility (annualized) | 2.7% | 14.6% | |
| Max Drawdown | -8.3% | -58.8% | |
| Fund Family | Flexshares Trust | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Sep 19, 2011 | Nov 10, 2006 |
TDTT vs VYM Performance
FlexShares iBoxx 3 Year Target Duration TIPS Index Fund (TDTT) is a ETF from Flexshares Trust and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year TDTT returned +1.68% while VYM returned +25.03%. Year to date, TDTT is up 0.74% versus a gain of 16.53% for VYM.
Over three years, TDTT compounded at +4.71% per year against +18.54% for VYM; over five years the annualized figures are +2.43% and +12.25% respectively. Across the full 15-year window we track, VYM has the edge at +7.10% annualized vs +1.38%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 2.7% for TDTT. 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 -8.3% for TDTT 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 0.39. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
TDTT 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, TDTT currently yields 4.57% against 2.86% for VYM.
Holdings Overlap
TDTT and VYM share 0 holdings out of 578 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, TDTT or VYM?
TDTT has an expense ratio of 0.18% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $14 per year of difference.
Which performed better, TDTT or VYM?
Over the past year TDTT returned +1.68% vs +25.03% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (15 years), TDTT annualized +1.38% vs +7.10% for VYM. Past performance does not guarantee future results.
Which is riskier, TDTT or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 2.7% for TDTT. Worst drawdown: TDTT -8.3% vs VYM -58.8%.
Should I hold both TDTT and VYM?
TDTT and VYM have a monthly-return correlation of 0.39, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between TDTT and VYM?
TDTT and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 578 unique securities.
Which pays a higher dividend, TDTT or VYM?
TDTT yields 4.57% while VYM yields 2.86%, so TDTT currently pays the higher dividend yield.
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