THYF vs VYM
THYF vs VYM
T. Rowe Price US High Yield 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 | THYF | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.56% | 0.04% | |
| AUM | $844M | $79.0B | |
| Dividend Yield | 7.03% | 2.86% | |
| Holdings | 113 | 568 | |
| YTD Return | +2.34% | +15.80% | |
| 1Y Return | +5.44% | +26.12% | |
| 3Y Return (annualized) | +7.80% | +18.25% | |
| 5Y Return (annualized) | - | +12.51% | |
| Volatility (annualized) | 5.6% | 14.6% | |
| Max Drawdown | -5.2% | -58.8% | |
| Fund Family | T.Rowe Price | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Oct 25, 2022 | Nov 10, 2006 |
THYF vs VYM Performance
T. Rowe Price US High Yield ETF (THYF) is a ETF from T.Rowe Price and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year THYF returned +5.44% while VYM returned +26.12%. Year to date, THYF is up 2.34% versus a gain of 15.80% for VYM.
Over three years, THYF compounded at +7.80% per year against +18.25% for VYM. Across the full 4-year window we track, THYF has the edge at +8.14% annualized vs +7.07%. 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 5.6% for THYF. 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 -5.2% for THYF 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 0.79. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
THYF charges 0.56% per year while VYM charges 0.04%. On a $10,000 position that is $56 vs $4 annually, a gap of $52 per year that compounds over a long holding period. On income, THYF currently yields 7.03% against 2.86% for VYM.
Holdings Overlap
THYF and VYM share 0 holdings out of 631 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, THYF or VYM?
THYF has an expense ratio of 0.56% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $52 per year of difference.
Which performed better, THYF or VYM?
Over the past year THYF returned +5.44% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (4 years), THYF annualized +8.14% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, THYF or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 5.6% for THYF. Worst drawdown: THYF -5.2% vs VYM -58.8%.
Should I hold both THYF and VYM?
THYF and VYM have a monthly-return correlation of 0.79, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between THYF and VYM?
THYF and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 631 unique securities.
Which pays a higher dividend, THYF or VYM?
THYF yields 7.03% while VYM yields 2.86%, so THYF currently pays the higher dividend yield.
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