FGD vs VYM
First Trust Dow Jones Global Select Dividend Index Fund vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. FGD delivered stronger 1-year returns. VYM offers more diversification with 616 holdings.
Side-by-Side Comparison
| Metric | FGD | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.55% | 0.04% | |
| AUM | $1.6B | $81.6B | |
| Dividend Yield | 5.04% | 2.24% | |
| Holdings | 109 | 616 | |
| YTD Return | +17.89% | +16.42% | |
| 1Y Return | +29.57% | +24.22% | |
| 3Y Return (annualized) | +25.69% | +19.03% | |
| 5Y Return (annualized) | +12.61% | +12.21% | |
| Volatility (annualized) | 20.2% | 14.6% | |
| Max Drawdown | -70.2% | -58.8% | |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Nov 21, 2007 | Nov 10, 2006 |
FGD vs VYM Performance
First Trust Dow Jones Global Select Dividend Index Fund (FGD) 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 FGD returned +29.57% while VYM returned +24.22%. Year to date, FGD is up 17.89% versus a gain of 16.42% for VYM.
Over three years, FGD compounded at +25.69% per year against +19.03% for VYM; over five years the annualized figures are +12.61% and +12.21% respectively. Across the full 19-year window we track, VYM has the edge at +7.10% annualized vs +2.59%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FGD has been the more volatile fund, with annualized monthly volatility of 20.2% 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 -70.2% for FGD 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 0.85. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FGD charges 0.55% per year while VYM charges 0.04%. On a $10,000 position that is $55 vs $4 annually, a gap of $51 per year that compounds over a long holding period. On income, FGD currently yields 5.04% against 2.24% for VYM.
Holdings Overlap
FGD and VYM share 20 holdings out of 682 unique holdings combined, representing a 2.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FGD or VYM?
FGD has an expense ratio of 0.55% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $51 per year of difference.
Which performed better, FGD or VYM?
Over the past year FGD returned +29.57% vs +24.22% for VYM, so FGD leads on 1-year performance. Over the longest common window we track (19 years), FGD annualized +2.59% vs +7.10% for VYM. Past performance does not guarantee future results.
Which is riskier, FGD or VYM?
FGD has been the more volatile fund at 20.2% annualized versus 14.6% for VYM. Worst drawdown: FGD -70.2% vs VYM -58.8%.
Should I hold both FGD and VYM?
FGD and VYM have a monthly-return correlation of 0.85, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FGD and VYM?
FGD and VYM share 20 common holdings with a 2.5% weight overlap. Combined, they hold 682 unique securities.
Which pays a higher dividend, FGD or VYM?
FGD yields 5.04% while VYM yields 2.24%, so FGD currently pays the higher dividend yield.
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