FFA vs VYM
First Trust Enhanced Equity Income Fund vs Vanguard High Dividend Yield ETF
Which is better, FFA or VYM?
Multi Alternative against Large Cap Value.
VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window. VYM is less concentrated, with 25.9% of the fund in its ten largest positions against 47.7%.
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 | FFA | VYM |
|---|---|---|
| Expense Ratio | 1.13% | 0.04%Best |
| AUM | $514M | $81.6B |
| Dividend Yield | 6.19% | 2.24% |
| Holdings | 86 | 613 |
| YTD Return | +10.34% | +14.82%Best |
| 1Y Return | +17.22% | +20.84%Best |
| 3Y Return (annualized) | +16.82% | +18.64%Best |
| 5Y Return (annualized) | +9.12% | +12.28%Best |
| Volatility (annualized) | 17.1% | 14.5%Best |
| Max Drawdown | -65.7% | -58.8%Best |
| $10,000 over 5 years | $15,471 | $17,845Best |
| Top 10 Weight | 47.7% | 25.9%Best |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) |
| Category | Alternative | Equity |
| Style | Multi Alternative | Large Cap Value |
| Inception | Aug 26, 2004 | Nov 10, 2006 |
Volatility and max drawdown are measured over the window both funds cover: Nov 16, 2006 to Sep 4, 2026 (19.8 years).
FFA 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 19.8 years both funds cover.
FFA vs VYM Performance
First Trust Enhanced Equity Income Fund (FFA) 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 FFA returned +17.22% while VYM returned +20.84%. Year to date, FFA is up 10.34% versus a gain of 14.82% for VYM.
Over three years, FFA compounded at +16.82% per year against +18.64% for VYM; over five years the annualized figures are +9.12% and +12.28% respectively. Across the full 20-year window we track, VYM has the edge at +7.00% annualized vs +3.33%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FFA has been the more volatile fund, with annualized monthly volatility of 17.1% 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 -65.7% for FFA and -58.8% 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 0.84. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FFA charges 1.13% per year while VYM charges 0.04%. On a $10,000 position that is $113 vs $4 annually, a gap of $109 per year that compounds over a long holding period. On income, FFA currently yields 6.19% against 2.24% for VYM.
Holdings Overlap
43.8% of FFA's money is in holdings VYM also owns. 35.5% of VYM's money is in holdings FFA also owns.
The two portfolios partly overlap.
34 positions in common, counted across the 62 positions we hold weights for in FFA and 603 in VYM, against full books of 86 and 613.
What only one of them owns
Our book lists 536 positions for VYM that do not appear in our book for FFA (61.9% of the fund), and 26 for FFA that do not appear in VYM (53.1%).
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
| Stock | Weight in FFA | Weight in VYM | Difference |
|---|---|---|---|
| AVGOBroadcom Inc | 3.95% | 7.29% | 3.34% |
| JPMJpmorgan Chase | 4.05% | 3.38% | 0.67% |
| CATCaterpillar, Inc. | 2.25% | 2.01% | 0.24% |
| CSCOCisco Systems Inc. - Ordinary Shares | 2.15% | 1.93% | 0.22% |
| XOMExxon Mobil Corp. | 1.39% | 2.36% | 0.97% |
| ABBVAbbvie Inc. | 1.84% | 1.85% | 0.01% |
| KOCoca Cola Co. | 1.90% | 1.31% | 0.59% |
| MRKMerck & Company Inc | 1.59% | 1.32% | 0.27% |
| PMPhilip Morris International Inc. | 1.54% | 1.17% | 0.37% |
| GSGoldman Sachs Group Inc/The | 1.35% | 1.15% | 0.20% |
43.8% of FFA 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.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, FFA or VYM?
FFA has an expense ratio of 1.13% while VYM charges 0.04%. VYM is the cheaper option, by $109 a year on a $10,000 investment.
Which performed better, FFA or VYM?
Over the past year FFA returned +17.22% vs +20.84% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), FFA annualized +3.33% vs +7.00% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FFA or VYM?
FFA has been the more volatile fund at 17.1% annualized versus 14.5% for VYM. Worst drawdown: FFA -65.7% vs VYM -58.8%.
Should I hold both FFA and VYM?
FFA and VYM have a monthly-return correlation of 0.84, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between FFA and VYM?
43.8% of FFA's money is in holdings VYM also owns. 35.5% of VYM's is in holdings FFA also owns. They hold 34 positions in common, counted across the 62 positions we hold weights for in FFA and 603 in VYM.
Which pays a higher dividend, FFA or VYM?
FFA yields 6.19% while VYM yields 2.24%, so FFA currently pays the higher dividend yield.
Is VYM better than FFA?
VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window. VYM is less concentrated, with 25.9% of the fund in its ten largest positions against 47.7%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.