DDIV vs VYM
First Trust Dorsey Wright Momentum & Dividend 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 | DDIV | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.60% | 0.04% | |
| AUM | $76M | $79.0B | |
| Dividend Yield | 1.61% | 2.86% | |
| Holdings | 51 | 568 | |
| YTD Return | +12.46% | +16.10% | |
| 1Y Return | +25.17% | +25.99% | |
| 3Y Return (annualized) | +20.61% | +18.29% | |
| 5Y Return (annualized) | +11.34% | +12.35% | |
| Volatility (annualized) | 20.1% | 14.6% | |
| Max Drawdown | -47.5% | -58.8% | |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Mar 10, 2014 | Nov 10, 2006 |
DDIV vs VYM Performance
First Trust Dorsey Wright Momentum & Dividend ETF (DDIV) 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 DDIV returned +25.17% while VYM returned +25.99%. Year to date, DDIV is up 12.46% versus a gain of 16.10% for VYM.
Over three years, DDIV compounded at +20.61% per year against +18.29% for VYM; over five years the annualized figures are +11.34% and +12.35% respectively. Across the full 8-year window we track, DDIV has the edge at +9.95% annualized vs +7.08%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
DDIV has been the more volatile fund, with annualized monthly volatility of 20.1% 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 -47.5% for DDIV 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 0.90. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
DDIV charges 0.60% per year while VYM charges 0.04%. On a $10,000 position that is $60 vs $4 annually, a gap of $56 per year that compounds over a long holding period. On income, DDIV currently yields 1.61% against 2.86% for VYM.
Holdings Overlap
DDIV and VYM share 44 holdings out of 564 unique holdings combined, representing a 16.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, DDIV or VYM?
DDIV has an expense ratio of 0.60% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $56 per year of difference.
Which performed better, DDIV or VYM?
Over the past year DDIV returned +25.17% vs +25.99% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (8 years), DDIV annualized +9.95% vs +7.08% for VYM. Past performance does not guarantee future results.
Which is riskier, DDIV or VYM?
DDIV has been the more volatile fund at 20.1% annualized versus 14.6% for VYM. Worst drawdown: DDIV -47.5% vs VYM -58.8%.
Should I hold both DDIV and VYM?
DDIV and VYM have a monthly-return correlation of 0.90, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between DDIV and VYM?
DDIV and VYM share 44 common holdings with a 16.5% weight overlap. Combined, they hold 564 unique securities.
Which pays a higher dividend, DDIV or VYM?
DDIV yields 1.61% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.