VTC vs. VYM
VTC (Vanguard Total Corporate Bond ETF) and VYM (Vanguard High Dividend Yield ETF) are both exchange-traded funds - VTC is a Corporate Bonds fund tracking the Bloomberg Barclays U.S. Corporate Bond Index, while VYM is a Dividend fund tracking the FTSE High Dividend Yield Index. Both are passively managed. Over the past 5 years, VTC returned 0.51%/yr vs 11.48%/yr for VYM. At a 0.16 correlation, their price movements are largely independent. Both charge a 0.04% expense ratio.
Performance
VTC vs. VYM - Performance Comparison
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Returns By Period
In the year-to-date period, VTC achieves a 0.60% return, which is significantly lower than VYM's 12.47% return.
VTC
- 1D
- -0.22%
- 1M
- 0.63%
- YTD
- 0.60%
- 6M
- 0.33%
- 1Y
- 5.99%
- 3Y*
- 5.22%
- 5Y*
- 0.51%
- 10Y*
- —
VYM
- 1D
- -0.43%
- 1M
- 3.38%
- YTD
- 12.47%
- 6M
- 12.01%
- 1Y
- 26.16%
- 3Y*
- 18.88%
- 5Y*
- 11.48%
- 10Y*
- 11.90%
VTC vs. VYM - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VTC Vanguard Total Corporate Bond ETF | 0.60% | 7.58% | 2.15% | 8.58% | -15.68% | -1.41% | 9.30% | 14.60% | -2.55% | 0.84% |
VYM Vanguard High Dividend Yield ETF | 12.47% | 15.42% | 17.60% | 6.57% | -0.43% | 26.20% | 1.15% | 24.06% | -5.92% | 4.42% |
Correlation
The correlation between VTC and VYM is 0.39, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.39 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.31 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.25 |
Correlation (All Time) Calculated using the full available price history since Nov 10, 2017 | 0.16 |
Over the past year, VTC and VYM have become more correlated (0.39) than their long-term average of 0.16, meaning their price movements have been converging.
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Return for Risk
VTC vs. VYM — Risk / Return Rank
VTC
VYM
VTC vs. VYM - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Total Corporate Bond ETF (VTC) and Vanguard High Dividend Yield ETF (VYM). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
| VTC | VYM | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.18 | ||
| Sortino ratioReturn per unit of downside risk | -1.62 | ||
| Omega ratioGain probability vs. loss probability | 1.24 | 1.46 | -0.22 |
| Calmar ratioReturn relative to maximum drawdown | 2.09 | 3.93 | -1.84 |
| Martin ratioReturn relative to average drawdown | 6.63 | 14.76 | -8.13 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| VTC | VYM | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.38 | 2.56 | -1.18 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.07 | 0.83 | -0.75 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | — | 0.73 | — |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.32 | 0.51 | -0.19 |
Drawdowns
VTC vs. VYM - Drawdown Comparison
The maximum VTC drawdown since its inception was -22.05%, smaller than the maximum VYM drawdown of -56.98%. Use the drawdown chart below to compare losses from any high point for VTC and VYM.
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Drawdown Indicators
| VTC | VYM | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -22.05% | -56.98% | +34.93% |
Max Drawdown (1Y)Largest decline over 1 year | -2.88% | -6.69% | +3.81% |
Max Drawdown (3Y)Largest decline over 3 years | -6.46% | -14.46% | +8.00% |
Max Drawdown (5Y)Largest decline over 5 years | -22.05% | -15.84% | -6.21% |
Max Drawdown (10Y)Largest decline over 10 years | — | -35.21% | — |
Current DrawdownCurrent decline from peak | -0.99% | -0.43% | -0.56% |
Average DrawdownAverage peak-to-trough decline | -5.84% | -7.19% | +1.35% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.90% | 1.78% | -0.88% |
Volatility
VTC vs. VYM - Volatility Comparison
The current volatility for Vanguard Total Corporate Bond ETF (VTC) is 1.43%, while Vanguard High Dividend Yield ETF (VYM) has a volatility of 2.77%. This indicates that VTC experiences smaller price fluctuations and is considered to be less risky than VYM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VTC | VYM | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.43% | 2.77% | -1.34% |
Volatility (6M)Calculated over the trailing 6-month period | 3.22% | 7.67% | -4.45% |
Volatility (1Y)Calculated over the trailing 1-year period | 4.37% | 10.28% | -5.91% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 7.08% | 13.96% | -6.88% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 7.68% | 16.34% | -8.66% |
VTC vs. VYM - Expense Ratio Comparison
Both VTC and VYM have an expense ratio of 0.04%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.
Dividends
VTC vs. VYM - Dividend Comparison
VTC's dividend yield for the trailing twelve months is around 4.93%, more than VYM's 2.19% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VTC Vanguard Total Corporate Bond ETF | 4.93% | 4.76% | 4.50% | 3.80% | 3.13% | 2.36% | 2.69% | 3.34% | 3.53% | 0.55% | 0.00% | 0.00% |
VYM Vanguard High Dividend Yield ETF | 2.19% | 2.44% | 2.74% | 3.12% | 3.01% | 2.76% | 3.18% | 3.03% | 3.40% | 2.80% | 2.91% | 3.22% |
Frequently Asked Questions
VTC and VYM have a correlation of 0.39, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VYM has higher volatility (2.77%) compared to VTC (1.43%). In terms of maximum drawdown, VTC dropped -22.05% vs VYM's -56.98%.
On 5-year performance, VYM leads with 11.48% vs 0.51% for VTC. Both ETFs have the same 0.04% expense ratio. On volatility, VTC has been the lower-risk option at 1.43%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 5-year period, VYM has performed better with a 11.48% return vs 0.51%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VTC and VYM have the same expense ratio: 0.04% per year.
VTC has the higher dividend yield at 4.93%, compared with 2.19% for VYM.
VTC is categorized as Corporate Bonds, while VYM is Dividend. VTC tracks Bloomberg Barclays U.S. Corporate Bond Index, while VYM tracks FTSE High Dividend Yield Index.
VYM currently has the higher Sharpe Ratio (2.56 vs 1.38), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.
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