High yield vs total market
VYM vs VTI after taxes
Compare a high-dividend-yield US fund against a total US market fund with distribution tax character in view.
Modeled result
From 2007 to 2025, VTI finished ahead of VYM before tax and retained about $15,632 more in estimated end-date sale proceeds after taxes paid during the test, from the same $10,000 start.
Historical model
Growth of $10,000
2007-01-03 to 2025-12-31
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All history
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VYM
High dividend (VYM)
- After-tax if sold at end
- $39,904
- Before tax
- $49,819
- Value after taxes paid
- $43,539
- Max drawdown
- -56.98%
VTI
Total market (VTI)
- After-tax if sold at end
- $55,537
- Before tax
- $67,627
- Value after taxes paid
- $62,458
- Max drawdown
- -55.45%
Detailed metrics
Assumptions
$10,000 lump sum; distributions reinvested; monthly rebalancing; 2007-01-03 to 2025-12-31.
Tax profile: Single filer, $150,000 income, taxable account, HIFO lots, 2026 federal brackets, no state tax.
FAQ
Is a high-dividend fund more tax-efficient?
In most taxable accounts the opposite holds. A higher yield means the fund distributes more return each year, and you pay tax on it instead of deferring it as unrealized gains. The net after-tax effect still depends on total return and your bracket.
Where does a high-dividend fund fit better?
In a tax-advantaged account, distributions are not taxed yearly, so the yield difference carries no annual tax cost. The taxable view is where the difference appears as tax drag.