CARZ vs VYM

CARZ vs VYM

Which is better, CARZ or VYM?

CARZ has been ahead.

VYM has a lower expense ratio. CARZ led over 1Y, 3Y, 5Y and the full window. VYM is less concentrated, with 26.1% of the fund in its ten largest positions against 45.7%.

Lower Fees: VYMHigher Returns: CARZLess Concentrated: VYM

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

MetricCARZVYM
Expense Ratio0.70%0.04%Best
AUM$47M$81.6B
Dividend Yield1.29%2.22%
Holdings104613
YTD Return+36.71%Best+10.24%
1Y Return+53.86%Best+14.89%
3Y Return (annualized)+31.17%Best+18.00%
5Y Return (annualized)+14.99%Best+11.42%
Volatility (annualized)24.2%13.1%Best
Max Drawdown-51.2%-35.7%Best
$10,000 over 5 years$20,105Best$17,172
Top 10 Weight45.7%26.1%Best
Fund FamilyFirst Trust Portfolios (US)Vanguard (US)
CategoryEquityEquity
StyleLarge Cap ValueLarge Cap Value
InceptionMay 9, 2011Nov 10, 2006

Volatility and max drawdown are measured over the window both funds cover: May 10, 2011 to Sep 25, 2026 (15.4 years).

CARZ 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 15.4 years both funds cover.

CARZ vs VYM Performance

First Trust S-Network Future Vehicles & Technology ETF (CARZ) 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 CARZ returned +53.86% while VYM returned +14.89%. Year to date, CARZ is up 36.71% versus a gain of 10.24% for VYM.

Over three years, CARZ compounded at +31.17% per year against +18.00% for VYM; over five years the annualized figures are +14.99% and +11.42% respectively. Across the full 15-year window we track, CARZ has the edge at +10.50% annualized vs +9.48%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

CARZ has been the more volatile fund, with annualized monthly volatility of 24.2% compared with 13.1% 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 -51.2% for CARZ 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 0.66. They move together some of the time, and apart the rest.

Fees and Cost Over Time

CARZ 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, CARZ currently yields 1.29% against 2.22% for VYM.

Holdings Overlap

CARZ already in VYM10.4%
VYM already in CARZ4.0%

10.4% of CARZ's money is in holdings VYM also owns. 4.0% of VYM's money is in holdings CARZ also owns.

CARZ and VYM share little of their money.

11 positions in common, counted across the 99 positions we hold weights for in CARZ and 557 in VYM, against full books of 104 and 613.

What only one of them owns

Our book lists 517 positions for VYM that do not appear in our book for CARZ (93.1% of the fund), and 37 for CARZ that do not appear in VYM (51.2%).

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

StockWeight in CARZWeight in VYMDifference
TXNTexas Instrument Inc2.32%1.02%1.30%
ADIAnalog Devices, Inc.1.72%0.73%0.99%
QCOMQualcomm Inc.1.76%0.63%1.13%
CMICummins Inc.0.76%0.36%0.40%
PCARPaccar Inc.0.63%0.28%0.35%
TELTE Connectivity PLC Common Stock0.59%0.24%0.35%
NXPINxp Semiconductors Nv Sedol B505Pn70.55%0.24%0.31%
FFord Motor Credit0.53%0.23%0.30%
SWKSSkyworks Solutions Inc.0.58%0.04%0.54%
ALBAlbemarle Corp.0.54%0.06%0.48%

You are not choosing between two funds in isolation.

Whichever of CARZ and VYM you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.

CARZVYM

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, CARZ or VYM?

CARZ has an expense ratio of 0.70% while VYM charges 0.04%. VYM is the cheaper option, by $66 a year on a $10,000 investment.

Which performed better, CARZ or VYM?

Over the past year CARZ returned +53.86% vs +14.89% for VYM, so CARZ leads on 1-year performance. Over the longest common window we track (15 years), CARZ annualized +10.50% vs +9.48% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, CARZ or VYM?

CARZ has been the more volatile fund at 24.2% annualized versus 13.1% for VYM. Worst drawdown: CARZ -51.2% vs VYM -35.7%.

Should I hold both CARZ and VYM?

CARZ and VYM have a monthly-return correlation of 0.66, 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 CARZ and VYM?

10.4% of CARZ's money is in holdings VYM also owns. 4.0% of VYM's is in holdings CARZ also owns. They hold 11 positions in common, counted across the 99 positions we hold weights for in CARZ and 557 in VYM.

Which pays a higher dividend, CARZ or VYM?

CARZ yields 1.29% while VYM yields 2.22%, so VYM currently pays the higher dividend yield.

Is VYM better than CARZ?

VYM has a lower expense ratio. CARZ led over 1Y, 3Y, 5Y and the full window. VYM is less concentrated, with 26.1% of the fund in its ten largest positions against 45.7%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.