EDOW vs VYM
First Trust Dow 30 Equal Weight 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 | EDOW | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.50% | 0.04% | |
| AUM | $311M | $79.0B | |
| Dividend Yield | 1.22% | 2.86% | |
| Holdings | 31 | 568 | |
| YTD Return | +12.49% | +16.78% | |
| 1Y Return | +19.84% | +24.43% | |
| 3Y Return (annualized) | +16.56% | +18.60% | |
| 5Y Return (annualized) | +9.96% | +12.30% | |
| Volatility (annualized) | 15.5% | 14.6% | |
| Max Drawdown | -33.7% | -58.8% | |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Aug 8, 2017 | Nov 10, 2006 |
EDOW vs VYM Performance
First Trust Dow 30 Equal Weight ETF (EDOW) 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 EDOW returned +19.84% while VYM returned +24.43%. Year to date, EDOW is up 12.49% versus a gain of 16.78% for VYM.
Over three years, EDOW compounded at +16.56% per year against +18.60% for VYM; over five years the annualized figures are +9.96% and +12.30% respectively. Across the full 9-year window we track, EDOW has the edge at +10.97% annualized vs +7.11%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
EDOW has been the more volatile fund, with annualized monthly volatility of 15.5% 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 -33.7% for EDOW 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 0.96. 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 1.22% against 2.86% for VYM.
Holdings Overlap
EDOW and VYM share 19 holdings out of 569 unique holdings combined, representing a 25.8% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
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. On a $10,000 investment, that is $46 per year of difference.
Which performed better, EDOW or VYM?
Over the past year EDOW returned +19.84% vs +24.43% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (9 years), EDOW annualized +10.97% vs +7.11% for VYM. Past performance does not guarantee future results.
Which is riskier, EDOW or VYM?
EDOW has been the more volatile fund at 15.5% annualized versus 14.6% for VYM. Worst drawdown: EDOW -33.7% vs VYM -58.8%.
Should I hold both EDOW and VYM?
EDOW and VYM have a monthly-return correlation of 0.96, 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 EDOW and VYM?
EDOW and VYM share 19 common holdings with a 25.8% weight overlap. Combined, they hold 569 unique securities.
Which pays a higher dividend, EDOW or VYM?
EDOW yields 1.22% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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