VTEL vs VYM
Vanguard Long-Term Tax-Exempt Bond ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VTEL offers more diversification with 1417 holdings.
Side-by-Side Comparison
| Metric | VTEL | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.04% | |
| AUM | $288M | $79.0B | |
| Dividend Yield | 3.78% | 2.86% | |
| Holdings | 6,215 | 568 | |
| YTD Return | -1.08% | +16.16% | |
| 1Y Return | +4.89% | +26.05% | |
| 3Y Return (annualized) | - | +18.43% | |
| 5Y Return (annualized) | - | +12.21% | |
| Volatility (annualized) | 5.4% | 14.6% | |
| Max Drawdown | -3.5% | -58.8% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | May 6, 2025 | Nov 10, 2006 |
VTEL vs VYM Performance
Vanguard Long-Term Tax-Exempt Bond ETF (VTEL) is a ETF from Vanguard (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year VTEL returned +4.89% while VYM returned +26.05%. Year to date, VTEL is down 1.08% 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 5.4% for VTEL. 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 -3.5% for VTEL 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 0.44. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VTEL charges 0.09% per year while VYM charges 0.04%. On a $10,000 position that is $9 vs $4 annually, a gap of $5 per year that compounds over a long holding period. On income, VTEL currently yields 3.78% against 2.86% for VYM.
Holdings Overlap
VTEL and VYM share 0 holdings out of 1975 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, VTEL or VYM?
VTEL has an expense ratio of 0.09% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $5 per year of difference.
Which performed better, VTEL or VYM?
Over the past year VTEL returned +4.89% vs +26.05% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (1 years), VTEL annualized +4.55% vs +7.09% for VYM. Past performance does not guarantee future results.
Which is riskier, VTEL or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 5.4% for VTEL. Worst drawdown: VTEL -3.5% vs VYM -58.8%.
Should I hold both VTEL and VYM?
VTEL and VYM have a monthly-return correlation of 0.44, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VTEL and VYM?
VTEL and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1975 unique securities.
Which pays a higher dividend, VTEL or VYM?
VTEL yields 3.78% while VYM yields 2.86%, so VTEL currently pays the higher dividend yield.
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