FT vs VYM
Franklin Universal Trust vs Vanguard High Dividend Yield ETF
Quick Verdict
FT has a lower expense ratio. VYM delivered stronger 1-year returns. FT offers more diversification with 704 holdings.
Side-by-Side Comparison
| Metric | FT | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.00% | 0.04% | |
| AUM | $212M | $81.6B | |
| Dividend Yield | 5.88% | 2.24% | |
| Holdings | 704 | 616 | |
| YTD Return | +0.52% | +15.25% | |
| 1Y Return | +4.12% | +22.18% | |
| 3Y Return (annualized) | +12.44% | +18.83% | |
| 5Y Return (annualized) | +5.55% | +12.09% | |
| Volatility (annualized) | 15.5% | 14.6% | |
| Max Drawdown | -70.3% | -58.8% | |
| Fund Family | Franklin Templeton Investments (US) | Vanguard (US) | |
| Category | Allocation/Balanced | Equity | |
| Inception | Sep 23, 1988 | Nov 10, 2006 |
FT vs VYM Performance
Franklin Universal Trust (FT) is a ETF from Franklin Templeton Investments (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year FT returned +4.12% while VYM returned +22.18%. Year to date, FT is up 0.52% versus a gain of 15.25% for VYM.
Over three years, FT compounded at +12.44% per year against +18.83% for VYM; over five years the annualized figures are +5.55% and +12.09% respectively. Across the full 20-year window we track, VYM has the edge at +7.03% annualized vs +0.73%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FT 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 -70.3% for FT 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 0.64. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FT charges 0.00% per year while VYM charges 0.04%. On a $10,000 position that is $0 vs $4 annually, a gap of $4 per year that compounds over a long holding period. On income, FT currently yields 5.88% against 2.24% for VYM.
Holdings Overlap
FT and VYM share 26 holdings out of 884 unique holdings combined, representing a 5.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FT or VYM?
FT has an expense ratio of 0.00% while VYM charges 0.04%. FT is the cheaper option. On a $10,000 investment, that is $4 per year of difference.
Which performed better, FT or VYM?
Over the past year FT returned +4.12% vs +22.18% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), FT annualized +0.73% vs +7.03% for VYM. Past performance does not guarantee future results.
Which is riskier, FT or VYM?
FT has been the more volatile fund at 15.5% annualized versus 14.6% for VYM. Worst drawdown: FT -70.3% vs VYM -58.8%.
Should I hold both FT and VYM?
FT and VYM have a monthly-return correlation of 0.64, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FT and VYM?
FT and VYM share 26 common holdings with a 5.1% weight overlap. Combined, they hold 884 unique securities.
Which pays a higher dividend, FT or VYM?
FT yields 5.88% while VYM yields 2.24%, so FT currently pays the higher dividend yield.
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