TLTW vs VYM
iShares 20+ Year Treasury Bond BuyWrite Strategy 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 | TLTW | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.35% | 0.04% | |
| AUM | $1.8B | $81.6B | |
| Dividend Yield | 11.24% | 2.24% | |
| Holdings | 4 | 616 | |
| YTD Return | -6.18% | +14.66% | |
| 1Y Return | -3.01% | +22.16% | |
| 3Y Return (annualized) | +0.27% | +18.72% | |
| 5Y Return (annualized) | - | +12.18% | |
| Volatility (annualized) | 12.1% | 14.6% | |
| Max Drawdown | -18.6% | -58.8% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Aug 18, 2022 | Nov 10, 2006 |
TLTW vs VYM Performance
iShares 20+ Year Treasury Bond BuyWrite Strategy ETF (TLTW) is a ETF from iShares by BlackRock (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year TLTW returned -3.01% while VYM returned +22.16%. Year to date, TLTW is down 6.18% versus a gain of 14.66% for VYM.
Over three years, TLTW compounded at +0.27% per year against +18.72% for VYM. Across the full 4-year window we track, VYM has the edge at +7.01% annualized vs -2.41%. 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 12.1% for TLTW. 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 -18.6% for TLTW 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 0.45. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
TLTW charges 0.35% per year while VYM charges 0.04%. On a $10,000 position that is $35 vs $4 annually, a gap of $31 per year that compounds over a long holding period. On income, TLTW currently yields 11.24% against 2.24% for VYM.
Holdings Overlap
TLTW and VYM share 0 holdings out of 605 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, TLTW or VYM?
TLTW has an expense ratio of 0.35% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $31 per year of difference.
Which performed better, TLTW or VYM?
Over the past year TLTW returned -3.01% vs +22.16% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (4 years), TLTW annualized -2.41% vs +7.01% for VYM. Past performance does not guarantee future results.
Which is riskier, TLTW or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 12.1% for TLTW. Worst drawdown: TLTW -18.6% vs VYM -58.8%.
Should I hold both TLTW and VYM?
TLTW and VYM have a monthly-return correlation of 0.45, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between TLTW and VYM?
TLTW and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 605 unique securities.
Which pays a higher dividend, TLTW or VYM?
TLTW yields 11.24% while VYM yields 2.24%, so TLTW 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.