TPZ vs VYM
Tortoise Essential Energy Fund vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. TPZ delivered stronger 1-year returns. VYM offers more diversification with 616 holdings.
Side-by-Side Comparison
| Metric | TPZ | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.85% | 0.04% | |
| AUM | $121M | $81.6B | |
| Dividend Yield | 3.15% | 2.24% | |
| Holdings | 35 | 616 | |
| YTD Return | +3.09% | +15.60% | |
| 1Y Return | +58.31% | +23.48% | |
| 3Y Return (annualized) | +23.77% | +19.07% | |
| 5Y Return (annualized) | +13.32% | +12.50% | |
| Volatility (annualized) | 24.4% | 14.6% | |
| Max Drawdown | -87.9% | -58.8% | |
| Fund Family | Tortoise Capital | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jul 29, 2009 | Nov 10, 2006 |
TPZ vs VYM Performance
Tortoise Essential Energy Fund (TPZ) is a ETF from Tortoise Capital and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year TPZ returned +58.31% while VYM returned +23.48%. Year to date, TPZ is up 3.09% versus a gain of 15.60% for VYM.
Over three years, TPZ compounded at +23.77% per year against +19.07% for VYM; over five years the annualized figures are +13.32% and +12.50% respectively. Across the full 16-year window we track, TPZ has the edge at +8.26% annualized vs +7.05%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
TPZ has been the more volatile fund, with annualized monthly volatility of 24.4% 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 -87.9% for TPZ 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 0.69. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
TPZ charges 0.85% per year while VYM charges 0.04%. On a $10,000 position that is $85 vs $4 annually, a gap of $81 per year that compounds over a long holding period. On income, TPZ currently yields 3.15% against 2.24% for VYM.
Holdings Overlap
TPZ and VYM share 13 holdings out of 621 unique holdings combined, representing a 3.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, TPZ or VYM?
TPZ has an expense ratio of 0.85% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $81 per year of difference.
Which performed better, TPZ or VYM?
Over the past year TPZ returned +58.31% vs +23.48% for VYM, so TPZ leads on 1-year performance. Over the longest common window we track (16 years), TPZ annualized +8.26% vs +7.05% for VYM. Past performance does not guarantee future results.
Which is riskier, TPZ or VYM?
TPZ has been the more volatile fund at 24.4% annualized versus 14.6% for VYM. Worst drawdown: TPZ -87.9% vs VYM -58.8%.
Should I hold both TPZ and VYM?
TPZ and VYM have a monthly-return correlation of 0.69, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between TPZ and VYM?
TPZ and VYM share 13 common holdings with a 3.1% weight overlap. Combined, they hold 621 unique securities.
Which pays a higher dividend, TPZ or VYM?
TPZ yields 3.15% while VYM yields 2.24%, so TPZ currently pays the higher dividend yield.
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