TYG vs VYM
Tortoise Energy Infrastructure Corporation 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 | TYG | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 1.49% | 0.04% | |
| AUM | $1.6B | $81.6B | |
| Dividend Yield | 11.96% | 2.24% | |
| Holdings | 41 | 616 | |
| YTD Return | +14.81% | +16.42% | |
| 1Y Return | +15.23% | +24.22% | |
| 3Y Return (annualized) | +25.91% | +19.03% | |
| 5Y Return (annualized) | +21.39% | +12.21% | |
| Volatility (annualized) | 34.9% | 14.6% | |
| Max Drawdown | -97.3% | -58.8% | |
| Fund Family | TortoiseEcofin Funds | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Feb 27, 2004 | Nov 10, 2006 |
TYG vs VYM Performance
Tortoise Energy Infrastructure Corporation (TYG) is a ETF from TortoiseEcofin Funds and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year TYG returned +15.23% while VYM returned +24.22%. Year to date, TYG is up 14.81% versus a gain of 16.42% for VYM.
Over three years, TYG compounded at +25.91% per year against +19.03% for VYM; over five years the annualized figures are +21.39% and +12.21% respectively. Across the full 20-year window we track, VYM has the edge at +7.10% annualized vs -1.34%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
TYG has been the more volatile fund, with annualized monthly volatility of 34.9% 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 -97.3% for TYG 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 0.58. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
TYG charges 1.49% per year while VYM charges 0.04%. On a $10,000 position that is $149 vs $4 annually, a gap of $145 per year that compounds over a long holding period. On income, TYG currently yields 11.96% against 2.24% for VYM.
Holdings Overlap
TYG and VYM share 17 holdings out of 619 unique holdings combined, representing a 2.7% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, TYG or VYM?
TYG has an expense ratio of 1.49% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $145 per year of difference.
Which performed better, TYG or VYM?
Over the past year TYG returned +15.23% vs +24.22% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), TYG annualized -1.34% vs +7.10% for VYM. Past performance does not guarantee future results.
Which is riskier, TYG or VYM?
TYG has been the more volatile fund at 34.9% annualized versus 14.6% for VYM. Worst drawdown: TYG -97.3% vs VYM -58.8%.
Should I hold both TYG and VYM?
TYG and VYM have a monthly-return correlation of 0.58, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between TYG and VYM?
TYG and VYM share 17 common holdings with a 2.7% weight overlap. Combined, they hold 619 unique securities.
Which pays a higher dividend, TYG or VYM?
TYG yields 11.96% while VYM yields 2.24%, so TYG currently pays the higher dividend yield.
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