TSME vs VYM
Thrivent Small-Mid Cap Equity 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 613 holdings.
Side-by-Side Comparison
| Metric | TSME | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.65% | 0.04% | |
| AUM | $886M | $81.6B | |
| Dividend Yield | 0.15% | 2.24% | |
| Holdings | 68 | 613 | |
| YTD Return | +10.59% | +14.87% | |
| 1Y Return | +14.17% | +21.39% | |
| 3Y Return (annualized) | +17.41% | +18.69% | |
| 5Y Return (annualized) | - | +11.98% | |
| Volatility (annualized) | 21.3% | 14.5% | |
| Max Drawdown | -26.6% | -58.8% | |
| Fund Family | Thrivent Funds | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Oct 5, 2022 | Nov 10, 2006 |
TSME vs VYM Performance
Thrivent Small-Mid Cap Equity ETF (TSME) is a ETF from Thrivent Funds and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year TSME returned +14.17% while VYM returned +21.39%. Year to date, TSME is up 10.59% versus a gain of 14.87% for VYM.
Over three years, TSME compounded at +17.41% per year against +18.69% for VYM. Across the full 4-year window we track, TSME has the edge at +16.87% annualized vs +7.00%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
TSME has been the more volatile fund, with annualized monthly volatility of 21.3% 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 -26.6% for TSME 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 0.78. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
TSME charges 0.65% per year while VYM charges 0.04%. On a $10,000 position that is $65 vs $4 annually, a gap of $61 per year that compounds over a long holding period. On income, TSME currently yields 0.15% against 2.24% for VYM.
Holdings Overlap
TSME and VYM share 8 holdings out of 660 unique holdings combined, representing a 0.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, TSME or VYM?
TSME has an expense ratio of 0.65% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $61 per year of difference.
Which performed better, TSME or VYM?
Over the past year TSME returned +14.17% vs +21.39% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (4 years), TSME annualized +16.87% vs +7.00% for VYM. Past performance does not guarantee future results.
Which is riskier, TSME or VYM?
TSME has been the more volatile fund at 21.3% annualized versus 14.5% for VYM. Worst drawdown: TSME -26.6% vs VYM -58.8%.
Should I hold both TSME and VYM?
TSME and VYM have a monthly-return correlation of 0.78, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between TSME and VYM?
TSME and VYM share 8 common holdings with a 0.3% weight overlap. Combined, they hold 660 unique securities.
Which pays a higher dividend, TSME or VYM?
TSME yields 0.15% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.
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