TILT vs VYM
FlexShares Morningstar US Market Factor Tilt Index Fund vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. TILT offers more diversification with 1926 holdings.
Side-by-Side Comparison
| Metric | TILT | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.25% | 0.04% | |
| AUM | $2.2B | $79.0B | |
| Dividend Yield | 1.08% | 2.86% | |
| Holdings | 1,946 | 568 | |
| YTD Return | +14.16% | +16.16% | |
| 1Y Return | +24.75% | +26.05% | |
| 3Y Return (annualized) | +19.70% | +18.43% | |
| 5Y Return (annualized) | +11.68% | +12.21% | |
| Volatility (annualized) | 15.6% | 14.6% | |
| Max Drawdown | -38.5% | -58.8% | |
| Fund Family | Flexshares Trust | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Sep 16, 2011 | Nov 10, 2006 |
TILT vs VYM Performance
FlexShares Morningstar US Market Factor Tilt Index Fund (TILT) is a ETF from Flexshares Trust and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year TILT returned +24.75% while VYM returned +26.05%. Year to date, TILT is up 14.16% versus a gain of 16.16% for VYM.
Over three years, TILT compounded at +19.70% per year against +18.43% for VYM; over five years the annualized figures are +11.68% and +12.21% respectively. Across the full 15-year window we track, TILT has the edge at +14.61% annualized vs +7.09%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
TILT has been the more volatile fund, with annualized monthly volatility of 15.6% compared with 14.6% for VYM. 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 -38.5% for TILT 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 0.91. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
TILT charges 0.25% per year while VYM charges 0.04%. On a $10,000 position that is $25 vs $4 annually, a gap of $21 per year that compounds over a long holding period. On income, TILT currently yields 1.08% against 2.86% for VYM.
Holdings Overlap
TILT and VYM share 529 holdings out of 1955 unique holdings combined, representing a 31.7% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, TILT or VYM?
TILT has an expense ratio of 0.25% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $21 per year of difference.
Which performed better, TILT or VYM?
Over the past year TILT returned +24.75% vs +26.05% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (15 years), TILT annualized +14.61% vs +7.09% for VYM. Past performance does not guarantee future results.
Which is riskier, TILT or VYM?
TILT has been the more volatile fund at 15.6% annualized versus 14.6% for VYM. Worst drawdown: TILT -38.5% vs VYM -58.8%.
Should I hold both TILT and VYM?
TILT and VYM have a monthly-return correlation of 0.91, 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 TILT and VYM?
TILT and VYM share 529 common holdings with a 31.7% weight overlap. Combined, they hold 1955 unique securities.
Which pays a higher dividend, TILT or VYM?
TILT yields 1.08% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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