VTP vs VYM
VTP vs VYM
Vanguard Total Inflation-Protected Securities 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 | VTP | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.05% | 0.04% | |
| AUM | $159M | $79.0B | |
| Dividend Yield | 1.61% | 2.86% | |
| Holdings | 51 | 568 | |
| YTD Return | +0.81% | +15.80% | |
| 1Y Return | +1.98% | +26.12% | |
| 3Y Return (annualized) | - | +18.25% | |
| 5Y Return (annualized) | - | +12.51% | |
| Volatility (annualized) | 2.9% | 14.6% | |
| Max Drawdown | -1.9% | -58.8% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jul 7, 2025 | Nov 10, 2006 |
VTP vs VYM Performance
Vanguard Total Inflation-Protected Securities ETF (VTP) is a ETF from Vanguard (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year VTP returned +1.98% while VYM returned +26.12%. Year to date, VTP is up 0.81% versus a gain of 15.80% for VYM.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 2.9% for VTP. 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 -1.9% for VTP 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 0.76. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VTP charges 0.05% per year while VYM charges 0.04%. On a $10,000 position that is $5 vs $4 annually, a gap of $1 per year that compounds over a long holding period. On income, VTP currently yields 1.61% against 2.86% for VYM.
Holdings Overlap
VTP and VYM share 0 holdings out of 601 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, VTP or VYM?
VTP has an expense ratio of 0.05% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, VTP or VYM?
Over the past year VTP returned +1.98% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (1 years), VTP annualized +2.83% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, VTP or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 2.9% for VTP. Worst drawdown: VTP -1.9% vs VYM -58.8%.
Should I hold both VTP and VYM?
VTP and VYM have a monthly-return correlation of 0.76, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VTP and VYM?
VTP and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 601 unique securities.
Which pays a higher dividend, VTP or VYM?
VTP yields 1.61% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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