EDOW vs VYM
First Trust Dow 30 Equal Weight ETF vs Vanguard High Dividend Yield ETF
Which is better, EDOW or VYM?
Nearly the same fund. VYM costs less.
VYM has a lower expense ratio. EDOW led over the full window, VYM over 1Y, 3Y and 5Y. The two have moved almost in lockstep, correlation 0.96. VYM is less concentrated, with 25.9% of the fund in its ten largest positions against 36.4%.
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
| Metric | EDOW | VYM |
|---|---|---|
| Expense Ratio | 0.50% | 0.04%Best |
| AUM | $328M | $81.6B |
| Dividend Yield | 1.24% | 2.24% |
| Holdings | 62 | 613 |
| YTD Return | +12.38% | +14.82%Best |
| 1Y Return | +18.28% | +20.84%Best |
| 3Y Return (annualized) | +17.07% | +18.64%Best |
| 5Y Return (annualized) | +10.18% | +12.28%Best |
| Volatility (annualized) | 15.4% | 14.8%Best |
| Max Drawdown | -33.7%Best | -35.7% |
| $10,000 over 5 years | $16,237 | $17,845Best |
| Top 10 Weight | 36.4% | 25.9%Best |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Value | Large Cap Value |
| Inception | Aug 8, 2017 | Nov 10, 2006 |
Volatility and max drawdown are measured over the window both funds cover: Aug 9, 2017 to Sep 4, 2026 (9.1 years).
EDOW 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 9.1 years both funds cover.
EDOW vs VYM Performance
First Trust Dow 30 Equal Weight ETF (EDOW) 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 EDOW returned +18.28% while VYM returned +20.84%. Year to date, EDOW is up 12.38% versus a gain of 14.82% for VYM.
Over three years, EDOW compounded at +17.07% per year against +18.64% for VYM; over five years the annualized figures are +10.18% and +12.28% respectively. Across the full 9-year window we track, EDOW has the edge at +10.89% annualized vs +10.27%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
EDOW has been the more volatile fund, with annualized monthly volatility of 15.4% compared with 14.8% 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 -33.7% for EDOW 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 0.96. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
EDOW charges 0.50% per year while VYM charges 0.04%. On a $10,000 position that is $50 vs $4 annually, a gap of $46 per year that compounds over a long holding period. On income, EDOW currently yields 1.24% against 2.24% for VYM.
Holdings Overlap
58.9% of EDOW's money is in holdings VYM also owns. 23.1% of VYM's money is in holdings EDOW also owns.
The two portfolios partly overlap.
18 positions in common, counted across the 30 positions we hold weights for in EDOW and 603 in VYM, against full books of 62 and 613.
What only one of them owns
Our book lists 552 positions for VYM that do not appear in our book for EDOW (74.3% of the fund), and 12 for EDOW that do not appear in VYM (40.9%).
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
| Stock | Weight in EDOW | Weight in VYM | Difference |
|---|---|---|---|
| JPMJpmorgan Chase | 3.57% | 3.38% | 0.19% |
| JNJJohnson & Johnson - Common | 3.32% | 2.54% | 0.78% |
| CATCaterpillar, Inc. | 3.13% | 2.01% | 1.12% |
| CSCOCisco Systems Inc. - Ordinary Shares | 3.14% | 1.93% | 1.21% |
| HDHome Depot Inc/The | 3.40% | 1.46% | 1.94% |
| UNHUnitedhealth Group Incorporated | 3.11% | 1.56% | 1.55% |
| MRKMerck & Company Inc | 3.31% | 1.32% | 1.99% |
| KOCoca Cola Co. | 3.19% | 1.31% | 1.88% |
| AMGNAmgen Inc. | 3.71% | 0.75% | 2.96% |
| PGProcter & Gamble Company | 3.03% | 1.42% | 1.61% |
58.9% of EDOW 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.
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Frequently Asked Questions
Which is cheaper, EDOW or VYM?
EDOW has an expense ratio of 0.50% while VYM charges 0.04%. VYM is the cheaper option, by $46 a year on a $10,000 investment.
Which performed better, EDOW or VYM?
Over the past year EDOW returned +18.28% vs +20.84% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (9 years), EDOW annualized +10.89% vs +10.27% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, EDOW or VYM?
EDOW has been the more volatile fund at 15.4% annualized versus 14.8% for VYM. Worst drawdown: EDOW -33.7% vs VYM -35.7%.
Should I hold both EDOW and VYM?
EDOW and VYM have a monthly-return correlation of 0.96, 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 EDOW and VYM?
58.9% of EDOW's money is in holdings VYM also owns. 23.1% of VYM's is in holdings EDOW also owns. They hold 18 positions in common, counted across the 30 positions we hold weights for in EDOW and 603 in VYM.
Which pays a higher dividend, EDOW or VYM?
EDOW yields 1.24% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.
Is VYM better than EDOW?
VYM has a lower expense ratio. EDOW led over the full window, VYM over 1Y, 3Y and 5Y. The two have moved almost in lockstep, correlation 0.96. VYM is less concentrated, with 25.9% of the fund in its ten largest positions against 36.4%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.