CARZ vs VYM
First Trust S-Network Future Vehicles & Technology ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. CARZ delivered stronger 1-year returns. VYM offers more diversification with 616 holdings.
Side-by-Side Comparison
| Metric | CARZ | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.70% | 0.04% | |
| AUM | $49M | $81.6B | |
| Dividend Yield | 1.33% | 2.24% | |
| Holdings | 105 | 616 | |
| YTD Return | +33.13% | +15.34% | |
| 1Y Return | +65.20% | +23.24% | |
| 3Y Return (annualized) | +28.09% | +19.22% | |
| 5Y Return (annualized) | +15.25% | +12.21% | |
| Volatility (annualized) | 24.2% | 14.6% | |
| Max Drawdown | -51.2% | -58.8% | |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | May 9, 2011 | Nov 10, 2006 |
CARZ vs VYM Performance
First Trust S-Network Future Vehicles & Technology ETF (CARZ) 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 CARZ returned +65.20% while VYM returned +23.24%. Year to date, CARZ is up 33.13% versus a gain of 15.34% for VYM.
Over three years, CARZ compounded at +28.09% per year against +19.22% for VYM; over five years the annualized figures are +15.25% and +12.21% respectively. Across the full 15-year window we track, CARZ has the edge at +10.38% annualized vs +7.04%. 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 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 -51.2% for CARZ 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 0.66. They move independently enough that combining them can meaningfully diversify a portfolio.
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 1.33% against 2.24% for VYM.
Holdings Overlap
CARZ and VYM share 11 holdings out of 691 unique holdings combined, representing a 4.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
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. On a $10,000 investment, that is $66 per year of difference.
Which performed better, CARZ or VYM?
Over the past year CARZ returned +65.20% vs +23.24% for VYM, so CARZ leads on 1-year performance. Over the longest common window we track (15 years), CARZ annualized +10.38% vs +7.04% for VYM. Past performance does not guarantee future results.
Which is riskier, CARZ or VYM?
CARZ has been the more volatile fund at 24.2% annualized versus 14.6% for VYM. Worst drawdown: CARZ -51.2% vs VYM -58.8%.
Should I hold both CARZ and VYM?
CARZ and VYM have a monthly-return correlation of 0.66, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between CARZ and VYM?
CARZ and VYM share 11 common holdings with a 4.5% weight overlap. Combined, they hold 691 unique securities.
Which pays a higher dividend, CARZ or VYM?
CARZ yields 1.33% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.
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