DVOL vs VYM
First Trust Dorsey Wright Momentum & Low Volatility 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 613 holdings.
Side-by-Side Comparison
| Metric | DVOL | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.60% | 0.04% | |
| AUM | $74M | $81.6B | |
| Dividend Yield | 0.75% | 2.24% | |
| Holdings | 102 | 613 | |
| YTD Return | +3.16% | +14.87% | |
| 1Y Return | +4.77% | +21.39% | |
| 3Y Return (annualized) | +13.18% | +18.69% | |
| 5Y Return (annualized) | +5.05% | +11.98% | |
| Volatility (annualized) | 16.1% | 14.5% | |
| Max Drawdown | -38.3% | -58.8% | |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Sep 5, 2018 | Nov 10, 2006 |
DVOL vs VYM Performance
First Trust Dorsey Wright Momentum & Low Volatility ETF (DVOL) 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 DVOL returned +4.77% while VYM returned +21.39%. Year to date, DVOL is up 3.16% versus a gain of 14.87% for VYM.
Over three years, DVOL compounded at +13.18% per year against +18.69% for VYM; over five years the annualized figures are +5.05% and +11.98% respectively. Across the full 8-year window we track, DVOL has the edge at +8.42% annualized vs +7.00%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
DVOL has been the more volatile fund, with annualized monthly volatility of 16.1% compared with 14.5% 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 -38.3% for DVOL 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 0.79. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
DVOL 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, DVOL currently yields 0.75% against 2.24% for VYM.
Holdings Overlap
DVOL and VYM share 20 holdings out of 633 unique holdings combined, representing a 9.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, DVOL or VYM?
DVOL 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, DVOL or VYM?
Over the past year DVOL returned +4.77% vs +21.39% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (8 years), DVOL annualized +8.42% vs +7.00% for VYM. Past performance does not guarantee future results.
Which is riskier, DVOL or VYM?
DVOL has been the more volatile fund at 16.1% annualized versus 14.5% for VYM. Worst drawdown: DVOL -38.3% vs VYM -58.8%.
Should I hold both DVOL and VYM?
DVOL and VYM have a monthly-return correlation of 0.79, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between DVOL and VYM?
DVOL and VYM share 20 common holdings with a 9.1% weight overlap. Combined, they hold 633 unique securities.
Which pays a higher dividend, DVOL or VYM?
DVOL yields 0.75% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.
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