VTG vs VYM
Vanguard Total Treasury ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VTG has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | VTG | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.04% | |
| AUM | $147M | $79.0B | |
| Dividend Yield | 3.18% | 2.86% | |
| Holdings | 285 | 568 | |
| YTD Return | -0.42% | +16.78% | |
| 1Y Return | +1.31% | +24.43% | |
| 3Y Return (annualized) | - | +18.60% | |
| 5Y Return (annualized) | - | +12.30% | |
| Volatility (annualized) | 3.2% | 14.6% | |
| Max Drawdown | -2.9% | -58.8% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jul 7, 2025 | Nov 10, 2006 |
VTG vs VYM Performance
Vanguard Total Treasury ETF (VTG) is a ETF from Vanguard (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year VTG returned +1.31% while VYM returned +24.43%. Year to date, VTG is down 0.42% versus a gain of 16.78% for VYM.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 3.2% for VTG. 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 -2.9% for VTG 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 0.46. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VTG 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, VTG currently yields 3.18% against 2.86% for VYM.
Holdings Overlap
VTG and VYM share 0 holdings out of 802 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, VTG or VYM?
VTG has an expense ratio of 0.03% while VYM charges 0.04%. VTG is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, VTG or VYM?
Over the past year VTG returned +1.31% vs +24.43% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (1 years), VTG annualized +2.17% vs +7.11% for VYM. Past performance does not guarantee future results.
Which is riskier, VTG or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 3.2% for VTG. Worst drawdown: VTG -2.9% vs VYM -58.8%.
Should I hold both VTG and VYM?
VTG and VYM have a monthly-return correlation of 0.46, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VTG and VYM?
VTG and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 802 unique securities.
Which pays a higher dividend, VTG or VYM?
VTG yields 3.18% while VYM yields 2.86%, so VTG currently pays the higher dividend yield.
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