TIPA vs VYM

Quick Verdict

VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.

Lower Fees: VYMHigher Returns: VYMMore Diversified: VYM

Side-by-Side Comparison

MetricTIPAVYMWinner
Expense Ratio0.10%0.04%
AUM$18M$79.0B
Dividend Yield2.65%2.86%
Holdings6568
YTD Return+4.34%+15.80%
1Y Return+5.32%+26.12%
3Y Return (annualized)-+18.25%
5Y Return (annualized)-+12.51%
Volatility (annualized)1.9%14.6%
Max Drawdown-0.8%-58.8%
Fund FamilyNorthern Trust Asset ManagementVanguard (US)
CategoryFixed IncomeEquity
InceptionMar 1, 2025Nov 10, 2006

TIPA vs VYM Performance

Northern Trust 2030 Inflation-Linked Distributing Ladder ETF (TIPA) is a ETF from Northern Trust Asset Management and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year TIPA returned +5.32% while VYM returned +26.12%. Year to date, TIPA is up 4.34% versus a gain of 15.80% for VYM.

Risk: Volatility and Drawdowns

VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 1.9% for TIPA. 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 -0.8% for TIPA 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

TIPA charges 0.10% per year while VYM charges 0.04%. On a $10,000 position that is $10 vs $4 annually, a gap of $6 per year that compounds over a long holding period. On income, TIPA currently yields 2.65% against 2.86% for VYM.

Holdings Overlap

0.0%overlap

TIPA and VYM share 0 holdings out of 562 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, TIPA or VYM?

TIPA has an expense ratio of 0.10% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $6 per year of difference.

Which performed better, TIPA or VYM?

Over the past year TIPA returned +5.32% vs +26.12% for VYM, so VYM leads on 1-year performance. Past performance does not guarantee future results.

Which is riskier, TIPA or VYM?

VYM has been the more volatile fund at 14.6% annualized versus 1.9% for TIPA. Worst drawdown: TIPA -0.8% vs VYM -58.8%.

Should I hold both TIPA and VYM?

TIPA 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 TIPA and VYM?

TIPA and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 562 unique securities.

Which pays a higher dividend, TIPA or VYM?

TIPA yields 2.65% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.

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