TSMY vs VYM

Quick Verdict

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

Lower Fees: VYMHigher Returns: TSMYMore Diversified: VYM

Side-by-Side Comparison

MetricTSMYVYMWinner
Expense Ratio1.01%0.04%
AUM$103M$79.0B
Dividend Yield48.83%2.86%
Holdings19568
YTD Return+30.38%+16.53%
1Y Return+60.68%+25.03%
3Y Return (annualized)-+18.54%
5Y Return (annualized)-+12.25%
Volatility (annualized)27.5%14.6%
Max Drawdown-31.1%-58.8%
Fund FamilyYieldMax ETFVanguard (US)
CategoryAlternativeEquity
InceptionAug 20, 2024Nov 10, 2006

TSMY vs VYM Performance

YieldMax TSM Option Income Strategy ETF (TSMY) is a ETF from YieldMax ETF and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year TSMY returned +60.68% while VYM returned +25.03%. Year to date, TSMY is up 30.38% versus a gain of 16.53% for VYM.

Risk: Volatility and Drawdowns

TSMY has been the more volatile fund, with annualized monthly volatility of 27.5% 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 -31.1% for TSMY 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 0.24. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

TSMY charges 1.01% per year while VYM charges 0.04%. On a $10,000 position that is $101 vs $4 annually, a gap of $97 per year that compounds over a long holding period. On income, TSMY currently yields 48.83% against 2.86% for VYM.

Holdings Overlap

0.0%overlap

TSMY and VYM share 0 holdings out of 561 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, TSMY or VYM?

TSMY has an expense ratio of 1.01% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $97 per year of difference.

Which performed better, TSMY or VYM?

Over the past year TSMY returned +60.68% vs +25.03% for VYM, so TSMY leads on 1-year performance. Over the longest common window we track (2 years), TSMY annualized +44.09% vs +7.10% for VYM. Past performance does not guarantee future results.

Which is riskier, TSMY or VYM?

TSMY has been the more volatile fund at 27.5% annualized versus 14.6% for VYM. Worst drawdown: TSMY -31.1% vs VYM -58.8%.

Should I hold both TSMY and VYM?

TSMY and VYM have a monthly-return correlation of 0.24, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between TSMY and VYM?

TSMY and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 561 unique securities.

Which pays a higher dividend, TSMY or VYM?

TSMY yields 48.83% while VYM yields 2.86%, so TSMY currently pays the higher dividend yield.

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