VTC vs VYM
Vanguard Total Corporate Bond ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VTC has a lower expense ratio. VYM delivered stronger 1-year returns. VTC offers more diversification with 5,356 holdings.
Side-by-Side Comparison
| Metric | VTC | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.04% | |
| AUM | $1.7B | $81.6B | |
| Dividend Yield | 5.01% | 2.24% | |
| Holdings | 5,356 | 613 | |
| YTD Return | -0.52% | +14.87% | |
| 1Y Return | +1.88% | +21.39% | |
| 3Y Return (annualized) | +5.27% | +18.69% | |
| 5Y Return (annualized) | -0.31% | +11.98% | |
| Volatility (annualized) | 7.2% | 14.5% | |
| Max Drawdown | -22.4% | -58.8% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Nov 7, 2017 | Nov 10, 2006 |
VTC vs VYM Performance
Vanguard Total Corporate Bond ETF (VTC) is a ETF from Vanguard (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year VTC returned +1.88% while VYM returned +21.39%. Year to date, VTC is down 0.52% versus a gain of 14.87% for VYM.
Over three years, VTC compounded at +5.27% per year against +18.69% for VYM; over five years the annualized figures are -0.31% and +11.98% respectively. Across the full 9-year window we track, VYM has the edge at +7.00% annualized vs +0.96%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.5% compared with 7.2% for VTC. 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 -22.4% for VTC 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 0.53. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VTC charges 0.03% per year while VYM charges 0.04%. On a $10,000 position that is $3 vs $4 annually, a gap of $1 per year that compounds over a long holding period. On income, VTC currently yields 5.01% against 2.24% for VYM.
Holdings Overlap
Frequently Asked Questions
Which is cheaper, VTC or VYM?
VTC has an expense ratio of 0.03% while VYM charges 0.04%. VTC is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, VTC or VYM?
Over the past year VTC returned +1.88% vs +21.39% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (9 years), VTC annualized +0.96% vs +7.00% for VYM. Past performance does not guarantee future results.
Which is riskier, VTC or VYM?
VYM has been the more volatile fund at 14.5% annualized versus 7.2% for VTC. Worst drawdown: VTC -22.4% vs VYM -58.8%.
Should I hold both VTC and VYM?
VTC and VYM have a monthly-return correlation of 0.53, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VTC and VYM?
VTC and VYM share 2 common holdings with a 0.0% weight overlap. Combined, they hold 1423 unique securities.
Which pays a higher dividend, VTC or VYM?
VTC yields 5.01% while VYM yields 2.24%, so VTC currently pays the higher dividend yield.
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