TIPB 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

MetricTIPBVYMWinner
Expense Ratio0.10%0.04%
AUM$8M$79.0B
Dividend Yield3.48%2.86%
Holdings11568
YTD Return+3.19%+15.80%
1Y Return+4.45%+26.12%
3Y Return (annualized)-+18.25%
5Y Return (annualized)-+12.51%
Volatility (annualized)2.1%14.6%
Max Drawdown-1.3%-58.8%
Fund FamilyNorthern Trust Asset ManagementVanguard (US)
CategoryFixed IncomeEquity
InceptionMar 1, 2025Nov 10, 2006

TIPB vs VYM Performance

Northern Trust 2035 Inflation-Linked Distributing Ladder ETF (TIPB) 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 TIPB returned +4.45% while VYM returned +26.12%. Year to date, TIPB is up 3.19% 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 2.1% for TIPB. 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 -1.3% for TIPB 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 0.73. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

TIPB 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, TIPB currently yields 3.48% against 2.86% for VYM.

Holdings Overlap

0.0%overlap

TIPB and VYM share 0 holdings out of 566 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, TIPB or VYM?

TIPB 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, TIPB or VYM?

Over the past year TIPB returned +4.45% vs +26.12% for VYM, so VYM leads on 1-year performance. Past performance does not guarantee future results.

Which is riskier, TIPB or VYM?

VYM has been the more volatile fund at 14.6% annualized versus 2.1% for TIPB. Worst drawdown: TIPB -1.3% vs VYM -58.8%.

Should I hold both TIPB and VYM?

TIPB and VYM have a monthly-return correlation of 0.73, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between TIPB and VYM?

TIPB and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 566 unique securities.

Which pays a higher dividend, TIPB or VYM?

TIPB yields 3.48% while VYM yields 2.86%, so TIPB currently pays the higher dividend yield.

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