TLTE vs VYM
Northern Trust Morningstar Emerging Markets Factor Tilt ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. TLTE delivered stronger 1-year returns. TLTE offers more diversification with 3,106 holdings.
Side-by-Side Comparison
| Metric | TLTE | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.57% | 0.04% | |
| AUM | $357M | $81.6B | |
| Dividend Yield | 3.35% | 2.24% | |
| Holdings | 3,106 | 613 | |
| YTD Return | +18.62% | +14.18% | |
| 1Y Return | +32.38% | +20.67% | |
| 3Y Return (annualized) | +20.03% | +18.47% | |
| 5Y Return (annualized) | +7.86% | +12.01% | |
| Volatility (annualized) | 16.6% | 14.5% | |
| Max Drawdown | -47.6% | -58.8% | |
| Fund Family | Northern Trust Asset Management | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Sep 25, 2012 | Nov 10, 2006 |
TLTE vs VYM Performance
Northern Trust Morningstar Emerging Markets Factor Tilt ETF (TLTE) 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 TLTE returned +32.38% while VYM returned +20.67%. Year to date, TLTE is up 18.62% versus a gain of 14.18% for VYM.
Over three years, TLTE compounded at +20.03% per year against +18.47% for VYM; over five years the annualized figures are +7.86% and +12.01% respectively. Across the full 14-year window we track, VYM has the edge at +6.97% annualized vs +4.52%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
TLTE has been the more volatile fund, with annualized monthly volatility of 16.6% compared with 14.5% 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 -47.6% for TLTE 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 0.68. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
TLTE charges 0.57% per year while VYM charges 0.04%. On a $10,000 position that is $57 vs $4 annually, a gap of $53 per year that compounds over a long holding period. On income, TLTE currently yields 3.35% against 2.24% for VYM.
Holdings Overlap
TLTE and VYM share 4 holdings out of 3566 unique holdings combined, representing a 0.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, TLTE or VYM?
TLTE has an expense ratio of 0.57% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $53 per year of difference.
Which performed better, TLTE or VYM?
Over the past year TLTE returned +32.38% vs +20.67% for VYM, so TLTE leads on 1-year performance. Over the longest common window we track (14 years), TLTE annualized +4.52% vs +6.97% for VYM. Past performance does not guarantee future results.
Which is riskier, TLTE or VYM?
TLTE has been the more volatile fund at 16.6% annualized versus 14.5% for VYM. Worst drawdown: TLTE -47.6% vs VYM -58.8%.
Should I hold both TLTE and VYM?
TLTE and VYM have a monthly-return correlation of 0.68, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between TLTE and VYM?
TLTE and VYM share 4 common holdings with a 0.2% weight overlap. Combined, they hold 3566 unique securities.
Which pays a higher dividend, TLTE or VYM?
TLTE yields 3.35% while VYM yields 2.24%, so TLTE currently pays the higher dividend yield.
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