TXSS vs VYM
Texas Capital Texas Small Cap 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 558 holdings.
Side-by-Side Comparison
| Metric | TXSS | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.49% | 0.04% | |
| AUM | $10M | $79.0B | |
| Dividend Yield | 0.48% | 2.86% | |
| Holdings | 182 | 568 | |
| YTD Return | -1.97% | +15.80% | |
| 1Y Return | -6.59% | +26.12% | |
| 3Y Return (annualized) | - | +18.25% | |
| 5Y Return (annualized) | - | +12.51% | |
| Volatility (annualized) | 18.5% | 14.6% | |
| Max Drawdown | -25.6% | -58.8% | |
| Fund Family | Texas Capital | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Dec 20, 2023 | Nov 10, 2006 |
TXSS vs VYM Performance
Texas Capital Texas Small Cap Equity Index ETF (TXSS) is a ETF from Texas Capital and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year TXSS returned -6.59% while VYM returned +26.12%. Year to date, TXSS is down 1.97% versus a gain of 15.80% for VYM.
Risk: Volatility and Drawdowns
TXSS has been the more volatile fund, with annualized monthly volatility of 18.5% 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 -25.6% for TXSS 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 0.84. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
TXSS 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, TXSS currently yields 0.48% against 2.86% for VYM.
Holdings Overlap
TXSS and VYM share 20 holdings out of 720 unique holdings combined, representing a 0.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, TXSS or VYM?
TXSS 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, TXSS or VYM?
Over the past year TXSS returned -6.59% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (2 years), TXSS annualized +4.17% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, TXSS or VYM?
TXSS has been the more volatile fund at 18.5% annualized versus 14.6% for VYM. Worst drawdown: TXSS -25.6% vs VYM -58.8%.
Should I hold both TXSS and VYM?
TXSS and VYM have a monthly-return correlation of 0.84, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between TXSS and VYM?
TXSS and VYM share 20 common holdings with a 0.4% weight overlap. Combined, they hold 720 unique securities.
Which pays a higher dividend, TXSS or VYM?
TXSS yields 0.48% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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