TIPD 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

MetricTIPDVYMWinner
Expense Ratio0.10%0.04%
AUM-$79.0B
Dividend Yield-2.86%
Holdings27568
YTD Return-0.56%+15.80%
1Y Return+1.30%+26.12%
3Y Return (annualized)-+18.25%
5Y Return (annualized)-+12.51%
Volatility (annualized)5.5%14.6%
Max Drawdown-4.0%-58.8%
Fund FamilyNorthern Trust Asset ManagementVanguard (US)
CategoryFixed IncomeEquity
InceptionMar 1, 2025Nov 10, 2006

TIPD vs VYM Performance

Northern Trust 2055 Inflation-Linked Distributing Ladder ETF (TIPD) 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 TIPD returned +1.30% while VYM returned +26.12%. Year to date, TIPD is down 0.56% 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 5.5% for TIPD. 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 -4.0% for TIPD 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 0.48. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

TIPD 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.

Holdings Overlap

0.0%overlap

TIPD and VYM share 0 holdings out of 582 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, TIPD or VYM?

TIPD 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, TIPD or VYM?

Over the past year TIPD returned +1.30% vs +26.12% for VYM, so VYM leads on 1-year performance. Past performance does not guarantee future results.

Which is riskier, TIPD or VYM?

VYM has been the more volatile fund at 14.6% annualized versus 5.5% for TIPD. Worst drawdown: TIPD -4.0% vs VYM -58.8%.

Should I hold both TIPD and VYM?

TIPD and VYM have a monthly-return correlation of 0.48, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between TIPD and VYM?

TIPD and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 582 unique securities.

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