ARVR vs VYM

Quick Verdict

VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 568 holdings.

Lower Fees: VYMHigher Returns: VYMMore Diversified: VYM

Side-by-Side Comparison

MetricARVRVYMWinner
Expense Ratio0.70%0.04%
AUM$5M$79.0B
Dividend Yield0.65%2.86%
Holdings46568
YTD Return+14.39%+16.78%
1Y Return+18.71%+24.43%
3Y Return (annualized)+23.99%+18.60%
5Y Return (annualized)-+12.30%
Volatility (annualized)22.0%14.6%
Max Drawdown-26.3%-58.8%
Fund FamilyFirst Trust Portfolios (US)Vanguard (US)
CategoryEquityEquity
InceptionApr 19, 2022Nov 10, 2006

ARVR vs VYM Performance

First Trust Indxx Metaverse ETF (ARVR) 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 ARVR returned +18.71% while VYM returned +24.43%. Year to date, ARVR is up 14.39% versus a gain of 16.78% for VYM.

Over three years, ARVR compounded at +23.99% per year against +18.60% for VYM. Across the full 4-year window we track, ARVR has the edge at +17.08% annualized vs +7.11%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

ARVR has been the more volatile fund, with annualized monthly volatility of 22.0% 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 -26.3% for ARVR 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 0.61. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

ARVR charges 0.70% per year while VYM charges 0.04%. On a $10,000 position that is $70 vs $4 annually, a gap of $66 per year that compounds over a long holding period. On income, ARVR currently yields 0.65% against 2.86% for VYM.

Holdings Overlap

1.7%overlap

ARVR and VYM share 3 holdings out of 597 unique holdings combined, representing a 1.7% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in ARVRWeight in VYMDifference
TXN3.00%0.85%2.15%
QCOM2.90%0.67%2.23%
MCHP3.04%0.17%2.87%

Frequently Asked Questions

Which is cheaper, ARVR or VYM?

ARVR has an expense ratio of 0.70% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $66 per year of difference.

Which performed better, ARVR or VYM?

Over the past year ARVR returned +18.71% vs +24.43% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (4 years), ARVR annualized +17.08% vs +7.11% for VYM. Past performance does not guarantee future results.

Which is riskier, ARVR or VYM?

ARVR has been the more volatile fund at 22.0% annualized versus 14.6% for VYM. Worst drawdown: ARVR -26.3% vs VYM -58.8%.

Should I hold both ARVR and VYM?

ARVR and VYM have a monthly-return correlation of 0.61, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between ARVR and VYM?

ARVR and VYM share 3 common holdings with a 1.7% weight overlap. Combined, they hold 597 unique securities.

Which pays a higher dividend, ARVR or VYM?

ARVR yields 0.65% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.

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