FTA vs VYM
First Trust Large Cap Value AlphaDEX Fund vs Vanguard High Dividend Yield ETF
Which is better, FTA or VYM?
Each has led over a different period.
VYM has a lower expense ratio. FTA led over 1Y and the full window, VYM over 3Y and 5Y. The two have moved almost in lockstep, correlation 0.93. FTA is less concentrated, with 11.0% of the fund in its ten largest positions against 26.1%.
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 | FTA | VYM |
|---|---|---|
| Expense Ratio | 0.58% | 0.04%Best |
| AUM | $1.4B | $81.6B |
| Dividend Yield | 1.59% | 2.22% |
| Holdings | 376 | 613 |
| YTD Return | +11.64%Best | +9.59% |
| 1Y Return | +17.46%Best | +13.66% |
| 3Y Return (annualized) | +16.23% | +17.87%Best |
| 5Y Return (annualized) | +10.25% | +11.51%Best |
| Volatility (annualized) | 19.0% | 14.7%Best |
| Max Drawdown | -63.8% | -58.8%Best |
| $10,000 over 5 years | $16,289 | $17,241Best |
| Top 10 Weight | 11.0%Best | 26.1% |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Value | Large Cap Value |
| Inception | May 8, 2007 | Nov 10, 2006 |
Volatility and max drawdown are measured over the window both funds cover: May 11, 2007 to Sep 28, 2026 (19.4 years).
FTA 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 19.4 years both funds cover.
FTA vs VYM Performance
First Trust Large Cap Value AlphaDEX Fund (FTA) 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 FTA returned +17.46% while VYM returned +13.66%. Year to date, FTA is up 11.64% versus a gain of 9.59% for VYM.
Over three years, FTA compounded at +16.23% per year against +17.87% for VYM; over five years the annualized figures are +10.25% and +11.51% respectively. Across the full 19-year window we track, FTA has the edge at +6.80% annualized vs +6.48%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FTA has been the more volatile fund, with annualized monthly volatility of 19.0% compared with 14.7% 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 -63.8% for FTA 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 0.93. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
FTA charges 0.58% per year while VYM charges 0.04%. On a $10,000 position that is $58 vs $4 annually, a gap of $54 per year that compounds over a long holding period. On income, FTA currently yields 1.59% against 2.22% for VYM.
Holdings Overlap
71.0% of FTA's money is in holdings VYM also owns. 39.3% of VYM's money is in holdings FTA also owns.
Most of FTA is already inside VYM. Owning both mostly buys the same companies twice.
131 positions in common, counted across the 187 positions we hold weights for in FTA and 557 in VYM, against full books of 376 and 613.
What only one of them owns
Our book lists 399 positions for VYM that do not appear in our book for FTA (58.5% of the fund), and 54 for FTA that do not appear in VYM (27.8%).
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 FTA | Weight in VYM | Difference |
|---|---|---|---|
| XOMExxon Mobil Corp. | 0.80% | 2.63% | 1.83% |
| CVXChevron Corp | 0.84% | 1.48% | 0.64% |
| BACBank of America Corp.: Financials | 0.54% | 1.66% | 1.12% |
| VZVerizon Communic | 1.00% | 0.80% | 0.20% |
| WFCWells Fargo & Co. | 0.71% | 1.07% | 0.36% |
| PGProcter & Gamble Company | 0.34% | 1.37% | 1.03% |
| TBBAt&t Inc | 1.06% | 0.64% | 0.42% |
| ACN:IEAccenture PLC Cl A | 1.29% | 0.41% | 0.88% |
| COPConocophillips Common Stock USD 0.01 | 1.08% | 0.60% | 0.48% |
| DISWalt Disney Co | 0.95% | 0.69% | 0.26% |
71.0% of FTA 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, FTA or VYM?
FTA has an expense ratio of 0.58% while VYM charges 0.04%. VYM is the cheaper option, by $54 a year on a $10,000 investment.
Which performed better, FTA or VYM?
Over the past year FTA returned +17.46% vs +13.66% for VYM, so FTA leads on 1-year performance. Over the longest common window we track (19 years), FTA annualized +6.80% vs +6.48% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FTA or VYM?
FTA has been the more volatile fund at 19.0% annualized versus 14.7% for VYM. Worst drawdown: FTA -63.8% vs VYM -58.8%.
Should I hold both FTA and VYM?
FTA and VYM have a monthly-return correlation of 0.93, 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 FTA and VYM?
71.0% of FTA's money is in holdings VYM also owns. 39.3% of VYM's is in holdings FTA also owns. They hold 131 positions in common, counted across the 187 positions we hold weights for in FTA and 557 in VYM.
Which pays a higher dividend, FTA or VYM?
FTA yields 1.59% while VYM yields 2.22%, so VYM currently pays the higher dividend yield.
Is VYM better than FTA?
VYM has a lower expense ratio. FTA led over 1Y and the full window, VYM over 3Y and 5Y. The two have moved almost in lockstep, correlation 0.93. FTA is less concentrated, with 11.0% of the fund in its ten largest positions against 26.1%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.