TRSY vs VYM

Quick Verdict

VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.

Lower Fees: VYMHigher Returns: VYMMore Diversified: VYM

Side-by-Side Comparison

MetricTRSYVYMWinner
Expense Ratio0.06%0.04%
AUM$80M$79.0B
Dividend Yield3.72%2.86%
Holdings88568
YTD Return+0.30%+16.16%
1Y Return+1.58%+26.05%
3Y Return (annualized)-+18.43%
5Y Return (annualized)-+12.21%
Volatility (annualized)0.6%14.6%
Max Drawdown-0.8%-58.8%
Fund FamilyXtrackers ETFsVanguard (US)
CategoryFixed IncomeEquity
InceptionOct 9, 2024Nov 10, 2006

TRSY vs VYM Performance

Xtrackers US 0-1 Year Treasury ETF (TRSY) is a ETF from Xtrackers ETFs and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year TRSY returned +1.58% while VYM returned +26.05%. Year to date, TRSY is up 0.30% versus a gain of 16.16% for VYM.

Risk: Volatility and Drawdowns

VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 0.6% for TRSY. 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 -0.8% for TRSY 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 -0.02. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

TRSY charges 0.06% per year while VYM charges 0.04%. On a $10,000 position that is $6 vs $4 annually, a gap of $2 per year that compounds over a long holding period. On income, TRSY currently yields 3.72% against 2.86% for VYM.

Holdings Overlap

0.0%overlap

TRSY and VYM share 0 holdings out of 606 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, TRSY or VYM?

TRSY has an expense ratio of 0.06% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $2 per year of difference.

Which performed better, TRSY or VYM?

Over the past year TRSY returned +1.58% vs +26.05% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (2 years), TRSY annualized +2.84% vs +7.09% for VYM. Past performance does not guarantee future results.

Which is riskier, TRSY or VYM?

VYM has been the more volatile fund at 14.6% annualized versus 0.6% for TRSY. Worst drawdown: TRSY -0.8% vs VYM -58.8%.

Should I hold both TRSY and VYM?

TRSY and VYM have a monthly-return correlation of -0.02, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between TRSY and VYM?

TRSY and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 606 unique securities.

Which pays a higher dividend, TRSY or VYM?

TRSY yields 3.72% while VYM yields 2.86%, so TRSY currently pays the higher dividend yield.

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