DDIV vs VYM

DDIV vs VYM

Which is better, DDIV or VYM?

Mid Cap Value against Large Cap Value.

VYM has a lower expense ratio. DDIV led over 3Y, VYM over 1Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.90. VYM is less concentrated, with 26.1% of the fund in its ten largest positions against 39.5%.

Lower Fees: VYMHigher Returns: splitLess 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

MetricDDIVVYM
Expense Ratio0.60%0.04%Best
AUM$75M$81.6B
Dividend Yield1.53%2.22%
Holdings102613
YTD Return+5.62%+9.71%Best
1Y Return+12.68%+13.77%Best
3Y Return (annualized)+18.77%Best+17.30%
5Y Return (annualized)+9.71%+11.45%Best
Volatility (annualized)20.1%15.6%Best
Max Drawdown-47.5%-35.7%Best
$10,000 over 5 years$15,894$17,195Best
Top 10 Weight39.5%26.1%Best
Fund FamilyFirst Trust Portfolios (US)Vanguard (US)
CategoryEquityEquity
StyleMid Cap ValueLarge Cap Value
InceptionMar 10, 2014Nov 10, 2006

Volatility and max drawdown are measured over the window both funds cover: Sep 5, 2018 to Sep 24, 2026 (8.1 years).

DDIV 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 8.1 years both funds cover.

DDIV vs VYM Performance

First Trust Dorsey Wright Momentum & Dividend ETF (DDIV) 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 DDIV returned +12.68% while VYM returned +13.77%. Year to date, DDIV is up 5.62% versus a gain of 9.71% for VYM.

Over three years, DDIV compounded at +18.77% per year against +17.30% for VYM; over five years the annualized figures are +9.71% and +11.45% respectively. Across the full 8-year window we track, VYM has the edge at +9.64% annualized vs +8.94%.

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 15.6% 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 -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 0.90. 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 1.53% against 2.22% for VYM.

Holdings Overlap

DDIV already in VYM74.7%
VYM already in DDIV14.2%

74.7% of DDIV's money is in holdings VYM also owns. 14.2% of VYM's money is in holdings DDIV also owns.

Most of DDIV is already inside VYM. Owning both mostly buys the same companies twice.

36 positions in common, counted across the 50 positions we hold weights for in DDIV and 557 in VYM, against full books of 102 and 613.

What only one of them owns

Our book lists 492 positions for VYM that do not appear in our book for DDIV (82.8% of the fund), and 13 for DDIV that do not appear in VYM (23.1%).

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 DDIVWeight in VYMDifference
ABBVAbbvie Inc.3.14%1.80%1.34%
DINOHF Sinclair Corp4.44%0.06%4.38%
IVZInvesco PLC4.42%0.04%4.38%
BENFranklin Resources Inc.4.41%0.04%4.37%
UNHUnitedhealth Group Incorporated2.37%1.52%0.85%
EIXEdison Intl3.76%0.11%3.65%
PFGPrincipalfinancialgroupinc.3.37%0.10%3.27%
CSCOCisco Systems Inc. - Ordinary Shares1.51%1.86%0.35%
CVSCvs Corp2.70%0.54%2.16%
CFGCitizens Financial Group Inc.2.93%0.12%2.81%

74.7% of DDIV is already inside VYM.

You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.

DDIVVYM

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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, by $56 a year on a $10,000 investment.

Which performed better, DDIV or VYM?

Over the past year DDIV returned +12.68% vs +13.77% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (8 years), DDIV annualized +8.94% vs +9.64% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, DDIV or VYM?

DDIV has been the more volatile fund at 20.1% annualized versus 15.6% for VYM. Worst drawdown: DDIV -47.5% vs VYM -35.7%.

Should I hold both DDIV and VYM?

DDIV and VYM have a monthly-return correlation of 0.90, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.

What is the holdings overlap between DDIV and VYM?

74.7% of DDIV's money is in holdings VYM also owns. 14.2% of VYM's is in holdings DDIV also owns. They hold 36 positions in common, counted across the 50 positions we hold weights for in DDIV and 557 in VYM.

Which pays a higher dividend, DDIV or VYM?

DDIV yields 1.53% while VYM yields 2.22%, so VYM currently pays the higher dividend yield.

Is VYM better than DDIV?

VYM has a lower expense ratio. DDIV led over 3Y, VYM over 1Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.90. VYM is less concentrated, with 26.1% of the fund in its ten largest positions against 39.5%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.