AFSM vs VYM
First Trust Active Factor Small Cap ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. AFSM delivered stronger 1-year returns. VYM offers more diversification with 616 holdings.
Side-by-Side Comparison
| Metric | AFSM | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.75% | 0.04% | |
| AUM | $123M | $81.6B | |
| Dividend Yield | 0.51% | 2.24% | |
| Holdings | 335 | 616 | |
| YTD Return | +24.61% | +15.75% | |
| 1Y Return | +31.25% | +23.85% | |
| 3Y Return (annualized) | +19.67% | +19.14% | |
| 5Y Return (annualized) | +10.85% | +12.45% | |
| Volatility (annualized) | 22.1% | 14.6% | |
| Max Drawdown | -43.5% | -58.8% | |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Dec 4, 2019 | Nov 10, 2006 |
AFSM vs VYM Performance
First Trust Active Factor Small Cap ETF (AFSM) is a ETF from First Trust Portfolios (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year AFSM returned +31.25% while VYM returned +23.85%. Year to date, AFSM is up 24.61% versus a gain of 15.75% for VYM.
Over three years, AFSM compounded at +19.67% per year against +19.14% for VYM; over five years the annualized figures are +10.85% and +12.45% respectively. Across the full 7-year window we track, AFSM has the edge at +12.00% annualized vs +7.06%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
AFSM has been the more volatile fund, with annualized monthly volatility of 22.1% compared with 14.6% for VYM. 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 -43.5% for AFSM 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 0.85. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
AFSM charges 0.75% per year while VYM charges 0.04%. On a $10,000 position that is $75 vs $4 annually, a gap of $71 per year that compounds over a long holding period. On income, AFSM currently yields 0.51% against 2.24% for VYM.
Holdings Overlap
AFSM and VYM share 55 holdings out of 881 unique holdings combined, representing a 0.8% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, AFSM or VYM?
AFSM has an expense ratio of 0.75% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $71 per year of difference.
Which performed better, AFSM or VYM?
Over the past year AFSM returned +31.25% vs +23.85% for VYM, so AFSM leads on 1-year performance. Over the longest common window we track (7 years), AFSM annualized +12.00% vs +7.06% for VYM. Past performance does not guarantee future results.
Which is riskier, AFSM or VYM?
AFSM has been the more volatile fund at 22.1% annualized versus 14.6% for VYM. Worst drawdown: AFSM -43.5% vs VYM -58.8%.
Should I hold both AFSM and VYM?
AFSM and VYM have a monthly-return correlation of 0.85, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between AFSM and VYM?
AFSM and VYM share 55 common holdings with a 0.8% weight overlap. Combined, they hold 881 unique securities.
Which pays a higher dividend, AFSM or VYM?
AFSM yields 0.51% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.
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