TFI vs VYM
State Street SPDR Nuveen ICE Municipal Bond 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 558 holdings.
Side-by-Side Comparison
| Metric | TFI | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.23% | 0.04% | |
| AUM | $3.1B | $79.0B | |
| Dividend Yield | 3.46% | 2.86% | |
| Holdings | 1,809 | 568 | |
| YTD Return | +0.26% | +16.16% | |
| 1Y Return | +4.36% | +26.05% | |
| 3Y Return (annualized) | +2.59% | +18.43% | |
| 5Y Return (annualized) | -0.36% | +12.21% | |
| Volatility (annualized) | 5.8% | 14.6% | |
| Max Drawdown | -17.1% | -58.8% | |
| Fund Family | State Street Investment Management | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Sep 11, 2007 | Nov 10, 2006 |
TFI vs VYM Performance
State Street SPDR Nuveen ICE Municipal Bond ETF (TFI) is a ETF from State Street Investment Management and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year TFI returned +4.36% while VYM returned +26.05%. Year to date, TFI is up 0.26% versus a gain of 16.16% for VYM.
Over three years, TFI compounded at +2.59% per year against +18.43% for VYM; over five years the annualized figures are -0.36% and +12.21% respectively. Across the full 19-year window we track, VYM has the edge at +7.09% annualized vs +0.81%. 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 5.8% for TFI. 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 -17.1% for TFI 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 0.21. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
TFI charges 0.23% per year while VYM charges 0.04%. On a $10,000 position that is $23 vs $4 annually, a gap of $19 per year that compounds over a long holding period. On income, TFI currently yields 3.46% against 2.86% for VYM.
Holdings Overlap
TFI and VYM share 0 holdings out of 565 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, TFI or VYM?
TFI has an expense ratio of 0.23% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $19 per year of difference.
Which performed better, TFI or VYM?
Over the past year TFI returned +4.36% vs +26.05% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (19 years), TFI annualized +0.81% vs +7.09% for VYM. Past performance does not guarantee future results.
Which is riskier, TFI or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 5.8% for TFI. Worst drawdown: TFI -17.1% vs VYM -58.8%.
Should I hold both TFI and VYM?
TFI and VYM have a monthly-return correlation of 0.21, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between TFI and VYM?
TFI and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 565 unique securities.
Which pays a higher dividend, TFI or VYM?
TFI yields 3.46% while VYM yields 2.86%, so TFI currently pays the higher dividend yield.
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