TLCI vs VYM
Touchstone International Equity ETF 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 616 holdings.
Side-by-Side Comparison
| Metric | TLCI | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.37% | 0.04% | |
| AUM | $115M | $81.6B | |
| Dividend Yield | 0.58% | 2.24% | |
| Holdings | 34 | 616 | |
| YTD Return | +6.52% | +15.60% | |
| 1Y Return | +6.64% | +23.48% | |
| 3Y Return (annualized) | - | +19.07% | |
| 5Y Return (annualized) | - | +12.50% | |
| Volatility (annualized) | 11.7% | 14.6% | |
| Max Drawdown | -12.2% | -58.8% | |
| Fund Family | Touchstone Investments | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Mar 3, 2025 | Nov 10, 2006 |
TLCI vs VYM Performance
Touchstone International Equity ETF (TLCI) is a ETF from Touchstone Investments and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year TLCI returned +6.64% while VYM returned +23.48%. Year to date, TLCI is up 6.52% versus a gain of 15.60% for VYM.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 11.7% for TLCI. 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 -12.2% for TLCI 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 0.46. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
TLCI charges 0.37% per year while VYM charges 0.04%. On a $10,000 position that is $37 vs $4 annually, a gap of $33 per year that compounds over a long holding period. On income, TLCI currently yields 0.58% against 2.24% for VYM.
Holdings Overlap
TLCI and VYM share 3 holdings out of 630 unique holdings combined, representing a 1.7% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, TLCI or VYM?
TLCI has an expense ratio of 0.37% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $33 per year of difference.
Which performed better, TLCI or VYM?
Over the past year TLCI returned +6.64% vs +23.48% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (2 years), TLCI annualized +7.68% vs +7.05% for VYM. Past performance does not guarantee future results.
Which is riskier, TLCI or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 11.7% for TLCI. Worst drawdown: TLCI -12.2% vs VYM -58.8%.
Should I hold both TLCI and VYM?
TLCI and VYM have a monthly-return correlation of 0.46, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between TLCI and VYM?
TLCI and VYM share 3 common holdings with a 1.7% weight overlap. Combined, they hold 630 unique securities.
Which pays a higher dividend, TLCI or VYM?
TLCI yields 0.58% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.
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