VYM vs. TFLO
VYM (Vanguard High Dividend Yield ETF) and TFLO (iShares Treasury Floating Rate Bond ETF) are both exchange-traded funds - VYM is a Dividend fund tracking the FTSE High Dividend Yield Index, while TFLO is a Government Bonds fund tracking the Bloomberg U.S. Treasury Floating Rate Index. Both are passively managed. Over the past 10 years, VYM returned 11.70%/yr vs 2.37%/yr for TFLO. At a correlation of -0.06, they often move in opposite directions. VYM charges 0.04%/yr vs 0.15%/yr for TFLO.
Performance
VYM vs. TFLO - Performance Comparison
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Returns By Period
In the year-to-date period, VYM achieves a 10.82% return, which is significantly higher than TFLO's 1.65% return. Over the past 10 years, VYM has outperformed TFLO with an annualized return of 11.70%, while TFLO has yielded a comparatively lower 2.37% annualized return.
VYM
- 1D
- -0.08%
- 1M
- 1.71%
- YTD
- 10.82%
- 6M
- 10.58%
- 1Y
- 24.30%
- 3Y*
- 17.89%
- 5Y*
- 11.33%
- 10Y*
- 11.70%
TFLO
- 1D
- 0.04%
- 1M
- 0.29%
- YTD
- 1.65%
- 6M
- 1.92%
- 1Y
- 4.01%
- 3Y*
- 4.72%
- 5Y*
- 3.65%
- 10Y*
- 2.37%
VYM vs. TFLO - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VYM Vanguard High Dividend Yield ETF | 10.82% | 15.42% | 17.60% | 6.57% | -0.43% | 26.20% | 1.15% | 24.06% | -5.92% | 16.42% |
TFLO iShares Treasury Floating Rate Bond ETF | 1.65% | 4.22% | 5.34% | 5.12% | 1.99% | -0.02% | 0.43% | 2.04% | 1.76% | 1.01% |
Correlation
The correlation between VYM and TFLO is -0.02, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | -0.02 |
Correlation (3Y) Calculated over the trailing 3-year period | -0.07 |
Correlation (5Y) Calculated over the trailing 5-year period | -0.08 |
Correlation (10Y) Calculated over the trailing 10-year period | -0.05 |
Correlation (All Time) Calculated using the full available price history since Feb 4, 2014 | -0.06 |
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Return for Risk
VYM vs. TFLO — Risk / Return Rank
VYM
TFLO
VYM vs. TFLO - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard High Dividend Yield ETF (VYM) and iShares Treasury Floating Rate Bond ETF (TFLO). 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.
| VYM | TFLO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -11.84 | ||
| Sortino ratioReturn per unit of downside risk | -48.02 | ||
| Omega ratioGain probability vs. loss probability | 1.43 | 14.07 | -12.65 |
| Calmar ratioReturn relative to maximum drawdown | 3.65 | 203.31 | -199.66 |
| Martin ratioReturn relative to average drawdown | 13.64 | 831.80 | -818.15 |
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
| VYM | TFLO | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 2.36 | 14.21 | -11.84 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.81 | 10.35 | -9.53 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.72 | 5.23 | -4.51 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.50 | 0.99 | -0.48 |
Drawdowns
VYM vs. TFLO - Drawdown Comparison
The maximum VYM drawdown since its inception was -56.98%, which is greater than TFLO's maximum drawdown of -5.01%. Use the drawdown chart below to compare losses from any high point for VYM and TFLO.
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Drawdown Indicators
| VYM | TFLO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -56.98% | -5.01% | -51.97% |
Max Drawdown (1Y)Largest decline over 1 year | -6.69% | -0.02% | -6.67% |
Max Drawdown (3Y)Largest decline over 3 years | -14.46% | -0.04% | -14.42% |
Max Drawdown (5Y)Largest decline over 5 years | -15.84% | -0.13% | -15.71% |
Max Drawdown (10Y)Largest decline over 10 years | -35.21% | -0.16% | -35.05% |
Current DrawdownCurrent decline from peak | -1.89% | 0.00% | -1.89% |
Average DrawdownAverage peak-to-trough decline | -7.19% | -0.10% | -7.09% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.79% | 0.00% | +1.79% |
Volatility
VYM vs. TFLO - Volatility Comparison
Vanguard High Dividend Yield ETF (VYM) has a higher volatility of 2.82% compared to iShares Treasury Floating Rate Bond ETF (TFLO) at 0.07%. This indicates that VYM's price experiences larger fluctuations and is considered to be riskier than TFLO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VYM | TFLO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 2.82% | 0.07% | +2.75% |
Volatility (6M)Calculated over the trailing 6-month period | 7.73% | 0.20% | +7.53% |
Volatility (1Y)Calculated over the trailing 1-year period | 10.35% | 0.28% | +10.07% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 13.98% | 0.35% | +13.63% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 16.35% | 0.46% | +15.89% |
VYM vs. TFLO - Expense Ratio Comparison
VYM has a 0.04% expense ratio, which is lower than TFLO's 0.15% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Dividends
VYM vs. TFLO - Dividend Comparison
VYM's dividend yield for the trailing twelve months is around 2.22%, less than TFLO's 3.90% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
TFLO iShares Treasury Floating Rate Bond ETF | 3.90% | 4.16% | 5.21% | 4.88% | 1.68% | 0.00% | 0.36% | 2.08% | 1.65% | 0.86% | 0.31% | 0.15% |
VYM Vanguard High Dividend Yield ETF | 2.22% | 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
VYM and TFLO have a correlation of -0.02, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VYM has higher volatility (2.82%) compared to TFLO (0.07%). In terms of maximum drawdown, VYM dropped -56.98% vs TFLO's -5.01%.
On 10-year performance, VYM leads with 11.70% vs 2.37% for TFLO. On fees, VYM is cheaper at 0.04% per year. On volatility, TFLO has been the lower-risk option at 0.07%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, VYM has performed better with a 11.70% return vs 2.37%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VYM is cheaper with a 0.04% expense ratio, compared with 0.15% for TFLO.
TFLO has the higher dividend yield at 3.90%, compared with 2.22% for VYM.
VYM is categorized as Dividend, while TFLO is Government Bonds. VYM tracks FTSE High Dividend Yield Index, while TFLO tracks Bloomberg U.S. Treasury Floating Rate Index. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.04% for VYM and 0.15% for TFLO.
TFLO currently has the higher Sharpe Ratio (14.21 vs 2.36), 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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