TDVG vs VYM
T. Rowe Price Dividend Growth 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 616 holdings.
Side-by-Side Comparison
| Metric | TDVG | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.50% | 0.04% | |
| AUM | $1.4B | $81.6B | |
| Dividend Yield | 0.96% | 2.24% | |
| Holdings | 96 | 616 | |
| YTD Return | +11.70% | +15.25% | |
| 1Y Return | +17.86% | +22.18% | |
| 3Y Return (annualized) | +15.90% | +18.83% | |
| 5Y Return (annualized) | +9.75% | +12.09% | |
| Volatility (annualized) | 13.6% | 14.6% | |
| Max Drawdown | -19.2% | -58.8% | |
| Fund Family | T.Rowe Price | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Aug 4, 2020 | Nov 10, 2006 |
TDVG vs VYM Performance
T. Rowe Price Dividend Growth ETF (TDVG) is a ETF from T.Rowe Price and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year TDVG returned +17.86% while VYM returned +22.18%. Year to date, TDVG is up 11.70% versus a gain of 15.25% for VYM.
Over three years, TDVG compounded at +15.90% per year against +18.83% for VYM; over five years the annualized figures are +9.75% and +12.09% respectively. Across the full 6-year window we track, TDVG has the edge at +13.22% annualized vs +7.03%. 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 13.6% for TDVG. 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 -19.2% for TDVG 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 0.92. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
TDVG charges 0.50% per year while VYM charges 0.04%. On a $10,000 position that is $50 vs $4 annually, a gap of $46 per year that compounds over a long holding period. On income, TDVG currently yields 0.96% against 2.24% for VYM.
Holdings Overlap
TDVG and VYM share 56 holdings out of 643 unique holdings combined, representing a 35.9% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, TDVG or VYM?
TDVG has an expense ratio of 0.50% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $46 per year of difference.
Which performed better, TDVG or VYM?
Over the past year TDVG returned +17.86% vs +22.18% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (6 years), TDVG annualized +13.22% vs +7.03% for VYM. Past performance does not guarantee future results.
Which is riskier, TDVG or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 13.6% for TDVG. Worst drawdown: TDVG -19.2% vs VYM -58.8%.
Should I hold both TDVG and VYM?
TDVG and VYM have a monthly-return correlation of 0.92, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between TDVG and VYM?
TDVG and VYM share 56 common holdings with a 35.9% weight overlap. Combined, they hold 643 unique securities.
Which pays a higher dividend, TDVG or VYM?
TDVG yields 0.96% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.
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