AFSM vs VYM
First Trust Active Factor Small Cap ETF vs Vanguard High Dividend Yield ETF
Which is better, AFSM or VYM?
Small Cap Blend against Large Cap Value.
VYM has a lower expense ratio. AFSM led over 1Y, 3Y and the full window, VYM over 5Y. AFSM is less concentrated, with 8.2% of the fund in its ten largest positions against 25.9%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | AFSM | VYM |
|---|---|---|
| Expense Ratio | 0.75% | 0.04%Best |
| AUM | $137M | $81.6B |
| Dividend Yield | 0.50% | 2.24% |
| Holdings | 670 | 613 |
| YTD Return | +23.12%Best | +14.82% |
| 1Y Return | +24.70%Best | +20.84% |
| 3Y Return (annualized) | +18.76%Best | +18.64% |
| 5Y Return (annualized) | +9.75% | +12.28%Best |
| Volatility (annualized) | 21.9% | 15.6%Best |
| Max Drawdown | -43.5% | -35.7%Best |
| $10,000 over 5 years | $15,923 | $17,845Best |
| Top 10 Weight | 8.2%Best | 25.9% |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Small Cap Blend | Large Cap Value |
| Inception | Dec 4, 2019 | Nov 10, 2006 |
Volatility and max drawdown are measured over the window both funds cover: Dec 4, 2019 to Sep 4, 2026 (6.8 years).
AFSM vs VYM growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 6.8 years both funds cover.
AFSM vs VYM Performance
First Trust Active Factor Small Cap ETF (AFSM) is an ETF from First Trust Portfolios (US) and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year AFSM returned +24.70% while VYM returned +20.84%. Year to date, AFSM is up 23.12% versus a gain of 14.82% for VYM.
Over three years, AFSM compounded at +18.76% per year against +18.64% for VYM; over five years the annualized figures are +9.75% and +12.28% respectively. Across the full 7-year window we track, AFSM has the edge at +11.71% annualized vs +11.69%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
AFSM has been the more volatile fund, with annualized monthly volatility of 21.9% compared with 15.6% 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 -35.7% for VYM. Drawdown depth is what each fund did in the worst stretch of the window measured above.
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 0.50% against 2.24% for VYM.
Holdings Overlap
14.6% of AFSM's money is in holdings VYM also owns. 0.8% of VYM's money is in holdings AFSM also owns.
AFSM and VYM share little of their money.
55 positions in common, counted across the 333 positions we hold weights for in AFSM and 602 in VYM, against full books of 670 and 613.
What only one of them owns
Our book lists 518 positions for VYM that do not appear in our book for AFSM (96.5% of the fund), and 261 for AFSM that do not appear in VYM (79.1%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in AFSM | Weight in VYM | Difference |
|---|---|---|---|
| CATYCathay General Bancorp | 0.62% | 0.02% | 0.60% |
| KLIC:SIKulicke & Soffa Industries Inc Adr | 0.61% | 0.03% | 0.58% |
| MCYMercury General Corp | 0.62% | 0.01% | 0.61% |
| SRCE1St Source Corp_None_0 | 0.60% | 0.01% | 0.59% |
| STNG:MCScorpio Tankers Inc. Common Shares | 0.56% | 0.01% | 0.55% |
| SIGSigma Healthcare Ltd | 0.52% | 0.01% | 0.51% |
| HRBH&R Block, Inc. | 0.48% | 0.02% | 0.46% |
| OASChord Energy Corp | 0.46% | 0.03% | 0.43% |
| BFHBread Financial Holdings, Inc. | 0.45% | 0.02% | 0.43% |
| KMTKennametal Inc | 0.45% | 0.01% | 0.44% |
You are not choosing between two funds in isolation.
Whichever of AFSM and VYM you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
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, by $71 a year on a $10,000 investment.
Which performed better, AFSM or VYM?
Over the past year AFSM returned +24.70% vs +20.84% for VYM, so AFSM leads on 1-year performance. Over the longest common window we track (7 years), AFSM annualized +11.71% vs +11.69% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, AFSM or VYM?
AFSM has been the more volatile fund at 21.9% annualized versus 15.6% for VYM. Worst drawdown: AFSM -43.5% vs VYM -35.7%.
Should I hold both AFSM and VYM?
AFSM and VYM have a monthly-return correlation of 0.85, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between AFSM and VYM?
14.6% of AFSM's money is in holdings VYM also owns. 0.8% of VYM's is in holdings AFSM also owns. They hold 55 positions in common, counted across the 333 positions we hold weights for in AFSM and 602 in VYM.
Which pays a higher dividend, AFSM or VYM?
AFSM yields 0.50% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.
Is VYM better than AFSM?
VYM has a lower expense ratio. AFSM led over 1Y, 3Y and the full window, VYM over 5Y. AFSM is less concentrated, with 8.2% of the fund in its ten largest positions against 25.9%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.