TXUE vs VYM
Thornburg International 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 558 holdings.
Side-by-Side Comparison
| Metric | TXUE | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.65% | 0.04% | |
| AUM | $527M | $79.0B | |
| Dividend Yield | 0.98% | 2.86% | |
| Holdings | 46 | 568 | |
| YTD Return | +15.75% | +16.16% | |
| 1Y Return | +24.15% | +26.05% | |
| 3Y Return (annualized) | - | +18.43% | |
| 5Y Return (annualized) | - | +12.21% | |
| Volatility (annualized) | 11.0% | 14.6% | |
| Max Drawdown | -13.0% | -58.8% | |
| Fund Family | Thornburg Investment Management | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jan 22, 2025 | Nov 10, 2006 |
TXUE vs VYM Performance
Thornburg International Equity ETF (TXUE) is a ETF from Thornburg Investment Management and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year TXUE returned +24.15% while VYM returned +26.05%. Year to date, TXUE is up 15.75% versus a gain of 16.16% for VYM.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 11.0% for TXUE. 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 -13.0% for TXUE 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 0.62. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
TXUE 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, TXUE currently yields 0.98% against 2.86% for VYM.
Holdings Overlap
TXUE and VYM share 0 holdings out of 606 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, TXUE or VYM?
TXUE 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, TXUE or VYM?
Over the past year TXUE returned +24.15% vs +26.05% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (2 years), TXUE annualized +27.95% vs +7.09% for VYM. Past performance does not guarantee future results.
Which is riskier, TXUE or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 11.0% for TXUE. Worst drawdown: TXUE -13.0% vs VYM -58.8%.
Should I hold both TXUE and VYM?
TXUE and VYM have a monthly-return correlation of 0.62, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between TXUE and VYM?
TXUE and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 606 unique securities.
Which pays a higher dividend, TXUE or VYM?
TXUE yields 0.98% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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