TLTD vs VYM

Quick Verdict

VYM has a lower expense ratio. TLTD delivered stronger 1-year returns. TLTD offers more diversification with 2317 holdings.

Lower Fees: VYMHigher Returns: TLTDMore Diversified: TLTD

Side-by-Side Comparison

MetricTLTDVYMWinner
Expense Ratio0.39%0.04%
AUM$661M$79.0B
Dividend Yield3.41%2.86%
Holdings2,387568
YTD Return+13.30%+16.53%
1Y Return+25.16%+25.03%
3Y Return (annualized)+21.28%+18.54%
5Y Return (annualized)+10.84%+12.25%
Volatility (annualized)15.1%14.6%
Max Drawdown-44.6%-58.8%
Fund FamilyFlexshares TrustVanguard (US)
CategoryEquityEquity
InceptionSep 25, 2012Nov 10, 2006

TLTD vs VYM Performance

FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund (TLTD) is a ETF from Flexshares Trust and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year TLTD returned +25.16% while VYM returned +25.03%. Year to date, TLTD is up 13.30% versus a gain of 16.53% for VYM.

Over three years, TLTD compounded at +21.28% per year against +18.54% for VYM; over five years the annualized figures are +10.84% and +12.25% respectively. Across the full 14-year window we track, VYM has the edge at +7.10% annualized vs +6.97%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

TLTD has been the more volatile fund, with annualized monthly volatility of 15.1% compared with 14.6% for VYM. 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 -44.6% for TLTD 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 0.83. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

TLTD charges 0.39% per year while VYM charges 0.04%. On a $10,000 position that is $39 vs $4 annually, a gap of $35 per year that compounds over a long holding period. On income, TLTD currently yields 3.41% against 2.86% for VYM.

Holdings Overlap

0.1%overlap

TLTD and VYM share 2 holdings out of 2873 unique holdings combined, representing a 0.1% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in TLTDWeight in VYMDifference
BG0.04%0.07%0.03%
SIG0.02%0.02%0.00%

Frequently Asked Questions

Which is cheaper, TLTD or VYM?

TLTD has an expense ratio of 0.39% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $35 per year of difference.

Which performed better, TLTD or VYM?

Over the past year TLTD returned +25.16% vs +25.03% for VYM, so TLTD leads on 1-year performance. Over the longest common window we track (14 years), TLTD annualized +6.97% vs +7.10% for VYM. Past performance does not guarantee future results.

Which is riskier, TLTD or VYM?

TLTD has been the more volatile fund at 15.1% annualized versus 14.6% for VYM. Worst drawdown: TLTD -44.6% vs VYM -58.8%.

Should I hold both TLTD and VYM?

TLTD and VYM have a monthly-return correlation of 0.83, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between TLTD and VYM?

TLTD and VYM share 2 common holdings with a 0.1% weight overlap. Combined, they hold 2873 unique securities.

Which pays a higher dividend, TLTD or VYM?

TLTD yields 3.41% while VYM yields 2.86%, so TLTD currently pays the higher dividend yield.

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