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VYM vs. TIP

Vanguard High Dividend Yield ETF

VYM
$--
vs

iShares TIPS Bond ETF

TIP
$--

Correlation

0.22
VYMVanguard High Dividend Yield ETF
TIPiShares TIPS Bond ETF

What is VYM?

Seeks to track the performance of the FTSE High Dividend Yield Index which measures the investment return of common stocks of companies characterized by high dividend yields. Provides a convenient way to track the performance of stocks with histories of above-average dividend yields. Follows a passively managed full-replication approach.

Snapshot
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VYM Vanguard High Dividend Yield ETF
TIP iShares TIPS Bond ETF
Inception date
Nov 10 2006
Dec 04 2003
Expense ratio
0.06%
0.19%
VYM has a lower expense ratio than TIP by 0.13%. This can indicate that it’s cheaper to invest in VYM than TIP.
Type
US Equities
US Bonds
VYM targets investing in US Equities, while TIP targets investing in US Bonds.
Fund owner
Vanguard
Blackrock (iShares)
VYM is managed by Vanguard, while TIP is managed by Blackrock (iShares).
Volume (1m avg. daily)
$134,746,385
$275,002,281
Both VYM and TIP are considered high-volume assets. They’re less likely to be affected by issues like slippage and failed orders on Composer than low-volume assets.
AUM
$48,466,955,232
$21,035,302,259
VYM has more assets under management than TIP by $27,431,652,973. Higher AUM can be associated with better liquidity and lower slippage in trading.
Associated index
FTSE High Dividend Yield Index
ICE US Treasury Inflation Linked Bond Index
VYM is based off of the FTSE High Dividend Yield Index, while TIP is based off of the ICE US Treasury Inflation Linked Bond Index
Inverse/Leveraged
No
No
VYM and TIP use the same leverage ratio. Inverse and leveraged ETFs can be used to either take an opposite position or amplify returns of a given index.
Passive/Active
Passive
Passive
VYM and TIP both use a Passive investing strategy. In an actively managed fund, the fund manager makes decisions about how funds are invested. A passively managed fund typically tries to track or follow a market index.
Dividend
Yes
No
VYM may offer dividends, while TIP does not. The frequency and yield of the dividend for VYM may vary.
Prospectus
Neither VYM nor TIP require a K1.
When ETFs are uncorrelated, it’s common for them to be used as complements in a trading strategy. This means it makes sense to be holding both of them at the same time, or to use one as a hedge for the other.

Automated Strategies
Related toVYM

#CV

Controlling for Volatility

Category

Getting Defensive, Worried about Inflation?

Risk Rating

Moderate

Automated Strategies
Related toTIP

#ROT

Ride the Oil Trend

Category

Featured, Diversification

Risk Rating

Aggressive

Create your own algorithmic
trading strategy

Disclaimers

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We show information directly obtained from our data provider, Xignite. Data shown here is provided by Xignite, an unaffiliated third party. Composer believes the information shown here is reliable, but has not been verified and there is no guarantee that the information is accurate.

**

We show information based on calculations performed by Composer using data from our provider. Information provided here is based on calculations performed by Composer using data sourced from Xignite, an unaffiliated third party. Composer believes this information is reliable, but has not verified the data and there is no guarantee that the calculations are accurate.