TSME vs VYM
Thrivent Small-Mid Cap Equity ETF vs Vanguard High Dividend Yield ETF
Which is better, TSME or VYM?
Mid Cap Growth against Large Cap Value.
VYM has a lower expense ratio. TSME led over 3Y and the full window, VYM over 1Y. TSME is less concentrated, with 23.7% of the fund in its ten largest positions against 26.1%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | TSME | VYM |
|---|---|---|
| Expense Ratio | 0.65% | 0.04%Best |
| AUM | $869M | $81.6B |
| Dividend Yield | 0.15% | 2.22% |
| Holdings | 68 | 613 |
| YTD Return | +9.55% | +10.96%Best |
| 1Y Return | +9.71% | +15.42%Best |
| 3Y Return (annualized) | +18.75%Best | +17.78% |
| 5Y Return (annualized) | - | +12.05% |
| Volatility (annualized) | 21.3% | 11.7%Best |
| Max Drawdown | -26.6% | -14.5%Best |
| $10,000 over 4 years | $18,320Best | $17,753 |
| Top 10 Weight | 23.7%Best | 26.1% |
| Fund Family | Thrivent Funds | Vanguard (US) |
| Category | Equity | Equity |
| Style | Mid Cap Growth | Large Cap Value |
| Inception | Oct 5, 2022 | Nov 10, 2006 |
Volatility and max drawdown, and the $10,000 over 4 years row, are measured over the window both funds cover: Oct 5, 2022 to Sep 22, 2026 (4 years).
TSME vs VYM growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 4 years both funds cover.
TSME vs VYM Performance
Thrivent Small-Mid Cap Equity ETF (TSME) is an ETF from Thrivent Funds and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year TSME returned +9.71% while VYM returned +15.42%. Year to date, TSME is up 9.55% versus a gain of 10.96% for VYM.
Over three years, TSME compounded at +18.75% per year against +17.78% for VYM. Across the full 4-year window we track, TSME has the edge at +16.34% annualized vs +15.43%.
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 11.7% 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 -14.5% for VYM. Drawdown depth is what each fund did in the worst stretch of the window measured above.
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 2.22% for VYM.
Holdings Overlap
13.8% of TSME's money is in holdings VYM also owns. 0.5% of VYM's money is in holdings TSME also owns.
TSME and VYM share little of their money.
11 positions in common, counted across the 71 positions we hold weights for in TSME and 557 in VYM, against full books of 68 and 613.
What only one of them owns
Our book lists 517 positions for VYM that do not appear in our book for TSME (96.6% of the fund), and 54 for TSME that do not appear in VYM (76.8%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in TSME | Weight in VYM | Difference |
|---|---|---|---|
| RRyder System Inc | 2.19% | 0.04% | 2.15% |
| OMFOnemain Holdings | 2.16% | 0.03% | 2.13% |
| IBPInstalled Building Products | 1.81% | 0.02% | 1.79% |
| NINisource Inc. | 1.16% | 0.09% | 1.07% |
| HRIHerc Holdings Inc Com | 1.20% | 0.02% | 1.18% |
| NTAPNetapp Inc | 1.01% | 0.14% | 0.87% |
| BWABorgWarner Inc | 1.08% | 0.05% | 1.03% |
| FCFSFirstcash Inc | 1.02% | 0.03% | 0.99% |
| TEXTerex Corp | 1.00% | 0.03% | 0.97% |
| AAPAdvance Auto Parts Inc. | 0.72% | 0.01% | 0.71% |
You are not choosing between two funds in isolation.
Whichever of TSME and VYM you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
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, by $61 a year on a $10,000 investment.
Which performed better, TSME or VYM?
Over the past year TSME returned +9.71% vs +15.42% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (4 years), TSME annualized +16.34% vs +15.43% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, TSME or VYM?
TSME has been the more volatile fund at 21.3% annualized versus 11.7% for VYM. Worst drawdown: TSME -26.6% vs VYM -14.5%.
Should I hold both TSME and VYM?
TSME and VYM have a monthly-return correlation of 0.78, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between TSME and VYM?
13.8% of TSME's money is in holdings VYM also owns. 0.5% of VYM's is in holdings TSME also owns. They hold 11 positions in common, counted across the 71 positions we hold weights for in TSME and 557 in VYM.
Which pays a higher dividend, TSME or VYM?
TSME yields 0.15% while VYM yields 2.22%, so VYM currently pays the higher dividend yield.
Is VYM better than TSME?
VYM has a lower expense ratio. TSME led over 3Y and the full window, VYM over 1Y. TSME is less concentrated, with 23.7% of the fund in its ten largest positions against 26.1%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.