TXS vs VYM
Texas Capital Texas Equity Index 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 616 holdings.
Side-by-Side Comparison
| Metric | TXS | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.49% | 0.04% | |
| AUM | $39M | $81.6B | |
| Dividend Yield | 0.78% | 2.24% | |
| Holdings | 457 | 616 | |
| YTD Return | +19.83% | +16.42% | |
| 1Y Return | +23.44% | +24.22% | |
| 3Y Return (annualized) | +21.20% | +19.03% | |
| 5Y Return (annualized) | - | +12.21% | |
| Volatility (annualized) | 14.0% | 14.6% | |
| Max Drawdown | -19.7% | -58.8% | |
| Fund Family | Texas Capital | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jul 12, 2023 | Nov 10, 2006 |
TXS vs VYM Performance
Texas Capital Texas Equity Index ETF (TXS) is a ETF from Texas Capital and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year TXS returned +23.44% while VYM returned +24.22%. Year to date, TXS is up 19.83% versus a gain of 16.42% for VYM.
Over three years, TXS compounded at +21.20% per year against +19.03% for VYM. Across the full 3-year window we track, TXS has the edge at +19.83% annualized vs +7.10%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 14.0% for TXS. 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 -19.7% for TXS 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 0.85. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
TXS charges 0.49% per year while VYM charges 0.04%. On a $10,000 position that is $49 vs $4 annually, a gap of $45 per year that compounds over a long holding period. On income, TXS currently yields 0.78% against 2.24% for VYM.
Holdings Overlap
TXS and VYM share 56 holdings out of 777 unique holdings combined, representing a 12.6% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, TXS or VYM?
TXS has an expense ratio of 0.49% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $45 per year of difference.
Which performed better, TXS or VYM?
Over the past year TXS returned +23.44% vs +24.22% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (3 years), TXS annualized +19.83% vs +7.10% for VYM. Past performance does not guarantee future results.
Which is riskier, TXS or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 14.0% for TXS. Worst drawdown: TXS -19.7% vs VYM -58.8%.
Should I hold both TXS and VYM?
TXS and VYM have a monthly-return correlation of 0.85, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between TXS and VYM?
TXS and VYM share 56 common holdings with a 12.6% weight overlap. Combined, they hold 777 unique securities.
Which pays a higher dividend, TXS or VYM?
TXS yields 0.78% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.
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