TIPZ vs VYM
PIMCO Broad US TIPS Index Exchange-Traded Fund 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 | TIPZ | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.20% | 0.04% | |
| AUM | $89M | $79.0B | |
| Dividend Yield | 4.27% | 2.86% | |
| Holdings | 44 | 568 | |
| YTD Return | -0.20% | +16.10% | |
| 1Y Return | +0.90% | +25.99% | |
| 3Y Return (annualized) | +3.64% | +18.29% | |
| 5Y Return (annualized) | -0.07% | +12.35% | |
| Volatility (annualized) | 5.2% | 14.6% | |
| Max Drawdown | -15.8% | -58.8% | |
| Fund Family | PIMCO (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Sep 3, 2009 | Nov 10, 2006 |
TIPZ vs VYM Performance
PIMCO Broad US TIPS Index Exchange-Traded Fund (TIPZ) is a ETF from PIMCO (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year TIPZ returned +0.90% while VYM returned +25.99%. Year to date, TIPZ is down 0.20% versus a gain of 16.10% for VYM.
Over three years, TIPZ compounded at +3.64% per year against +18.29% for VYM; over five years the annualized figures are -0.07% and +12.35% respectively. Across the full 17-year window we track, VYM has the edge at +7.08% annualized vs +1.77%. 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 5.2% for TIPZ. 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 -15.8% for TIPZ 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 0.28. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
TIPZ charges 0.20% per year while VYM charges 0.04%. On a $10,000 position that is $20 vs $4 annually, a gap of $16 per year that compounds over a long holding period. On income, TIPZ currently yields 4.27% against 2.86% for VYM.
Holdings Overlap
TIPZ and VYM share 0 holdings out of 598 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, TIPZ or VYM?
TIPZ has an expense ratio of 0.20% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $16 per year of difference.
Which performed better, TIPZ or VYM?
Over the past year TIPZ returned +0.90% vs +25.99% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (17 years), TIPZ annualized +1.77% vs +7.08% for VYM. Past performance does not guarantee future results.
Which is riskier, TIPZ or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 5.2% for TIPZ. Worst drawdown: TIPZ -15.8% vs VYM -58.8%.
Should I hold both TIPZ and VYM?
TIPZ and VYM have a monthly-return correlation of 0.28, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between TIPZ and VYM?
TIPZ and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 598 unique securities.
Which pays a higher dividend, TIPZ or VYM?
TIPZ yields 4.27% while VYM yields 2.86%, so TIPZ currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.