CTA vs VYM
Simplify Managed Futures Strategy ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | CTA | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.75% | 0.04% | |
| AUM | $1.5B | $79.0B | |
| Dividend Yield | 5.12% | 2.86% | |
| Holdings | 125 | 568 | |
| YTD Return | +3.36% | +16.53% | |
| 1Y Return | +5.11% | +25.03% | |
| 3Y Return (annualized) | +7.67% | +18.54% | |
| 5Y Return (annualized) | - | +12.25% | |
| Volatility (annualized) | 16.8% | 14.6% | |
| Max Drawdown | -20.8% | -58.8% | |
| Fund Family | Simplify Exchange Traded Funds | Vanguard (US) | |
| Category | Alternative | Equity | |
| Inception | Mar 1, 2022 | Nov 10, 2006 |
CTA vs VYM Performance
Simplify Managed Futures Strategy ETF (CTA) is a ETF from Simplify Exchange Traded Funds and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year CTA returned +5.11% while VYM returned +25.03%. Year to date, CTA is up 3.36% versus a gain of 16.53% for VYM.
Over three years, CTA compounded at +7.67% per year against +18.54% for VYM. Across the full 4-year window we track, CTA has the edge at +7.57% annualized vs +7.10%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
CTA has been the more volatile fund, with annualized monthly volatility of 16.8% 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 -20.8% for CTA 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 -0.12. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
CTA 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, CTA currently yields 5.12% against 2.86% for VYM.
Holdings Overlap
CTA and VYM share 0 holdings out of 559 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, CTA or VYM?
CTA 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, CTA or VYM?
Over the past year CTA returned +5.11% vs +25.03% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (4 years), CTA annualized +7.57% vs +7.10% for VYM. Past performance does not guarantee future results.
Which is riskier, CTA or VYM?
CTA has been the more volatile fund at 16.8% annualized versus 14.6% for VYM. Worst drawdown: CTA -20.8% vs VYM -58.8%.
Should I hold both CTA and VYM?
CTA and VYM have a monthly-return correlation of -0.12, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between CTA and VYM?
CTA and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 559 unique securities.
Which pays a higher dividend, CTA or VYM?
CTA yields 5.12% while VYM yields 2.86%, so CTA currently pays the higher dividend yield.
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