CTA vs VYM

CTA vs VYM

Which is better, CTA or VYM?

Multi Alternative against Large Cap Value.

VYM has a lower expense ratio. VYM led over 1Y, 3Y and the full window.

Lower Fees: VYMHigher Returns: 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

MetricCTAVYM
Expense Ratio0.75%0.04%Best
AUM$1.6B$81.6B
Dividend Yield5.41%2.24%
Holdings126613
YTD Return+8.79%+14.82%Best
1Y Return+7.70%+20.84%Best
3Y Return (annualized)+9.77%+18.64%Best
5Y Return (annualized)-+12.28%
Volatility (annualized)16.8%13.9%Best
Max Drawdown-20.8%-15.8%Best
$10,000 over 4.5 years$14,550$17,360Best
Fund FamilySimplify Exchange Traded FundsVanguard (US)
CategoryAlternativeEquity
StyleMulti AlternativeLarge Cap Value
InceptionMar 1, 2022Nov 10, 2006

Not shown on this pair: Top 10 Weight.

Volatility and max drawdown, and the $10,000 over 4.5 years row, are measured over the window both funds cover: Mar 8, 2022 to Sep 4, 2026 (4.5 years).

CTA 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 4.5 years both funds cover.

CTA vs VYM Performance

Simplify Managed Futures Strategy ETF (CTA) is an ETF from Simplify Exchange Traded Funds and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year CTA returned +7.70% while VYM returned +20.84%. Year to date, CTA is up 8.79% versus a gain of 14.82% for VYM.

Over three years, CTA compounded at +9.77% per year against +18.64% for VYM.

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 13.9% 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 -15.8% 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 -0.11. They move largely independently of each other.

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 5.41% against 2.24% for VYM.

Holdings Overlap

We hold position weights for 1 holding in CTA and 602 in VYM, totalling 72.7% and 99.5% of the two funds. The two books name no position in common, so there is no overlap percentage to show.

0 positions in common, counted across the 1 positions we hold weights for in CTA and 602 in VYM, against full books of 126 and 613.

You are not choosing between two funds in isolation.

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

CTAVYM

Free for up to 10 holdings. No account needed.

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, by $71 a year on a $10,000 investment.

Which performed better, CTA or VYM?

Over the past year CTA returned +7.70% vs +20.84% for VYM, so VYM leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, CTA or VYM?

CTA has been the more volatile fund at 16.8% annualized versus 13.9% for VYM. Worst drawdown: CTA -20.8% vs VYM -15.8%.

Should I hold both CTA and VYM?

CTA and VYM have a monthly-return correlation of -0.11, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.

Which pays a higher dividend, CTA or VYM?

CTA yields 5.41% while VYM yields 2.24%, so CTA currently pays the higher dividend yield.

Is VYM better than CTA?

VYM has a lower expense ratio. VYM led over 1Y, 3Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.