TMED vs VYM
T. Rowe Price Health Care ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. TMED delivered stronger 1-year returns. VYM offers more diversification with 616 holdings.
Side-by-Side Comparison
| Metric | TMED | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.44% | 0.04% | |
| AUM | $30M | $81.6B | |
| Dividend Yield | 0.48% | 2.24% | |
| Holdings | 347 | 616 | |
| YTD Return | +21.95% | +15.36% | |
| 1Y Return | +43.96% | +21.96% | |
| 3Y Return (annualized) | - | +18.85% | |
| 5Y Return (annualized) | - | +12.25% | |
| Volatility (annualized) | 14.8% | 14.6% | |
| Max Drawdown | -11.1% | -58.8% | |
| Fund Family | T.Rowe Price | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jun 11, 2025 | Nov 10, 2006 |
TMED vs VYM Performance
T. Rowe Price Health Care ETF (TMED) is a ETF from T.Rowe Price and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year TMED returned +43.96% while VYM returned +21.96%. Year to date, TMED is up 21.95% versus a gain of 15.36% for VYM.
Risk: Volatility and Drawdowns
TMED has been the more volatile fund, with annualized monthly volatility of 14.8% 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 -11.1% for TMED 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 0.33. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
TMED charges 0.44% per year while VYM charges 0.04%. On a $10,000 position that is $44 vs $4 annually, a gap of $40 per year that compounds over a long holding period. On income, TMED currently yields 0.48% against 2.24% for VYM.
Holdings Overlap
TMED and VYM share 0 holdings out of 765 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, TMED or VYM?
TMED has an expense ratio of 0.44% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $40 per year of difference.
Which performed better, TMED or VYM?
Over the past year TMED returned +43.96% vs +21.96% for VYM, so TMED leads on 1-year performance. Over the longest common window we track (1 years), TMED annualized +35.99% vs +7.03% for VYM. Past performance does not guarantee future results.
Which is riskier, TMED or VYM?
TMED has been the more volatile fund at 14.8% annualized versus 14.6% for VYM. Worst drawdown: TMED -11.1% vs VYM -58.8%.
Should I hold both TMED and VYM?
TMED and VYM have a monthly-return correlation of 0.33, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between TMED and VYM?
TMED and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 765 unique securities.
Which pays a higher dividend, TMED or VYM?
TMED yields 0.48% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.
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