FTBI vs VYM
FTBI vs VYM
First Trust Balanced Income 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 | FTBI | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.97% | 0.04% | |
| AUM | $21M | $79.0B | |
| Dividend Yield | 7.32% | 2.86% | |
| Holdings | 15 | 568 | |
| YTD Return | +7.57% | +15.80% | |
| 1Y Return | +13.62% | +26.12% | |
| 3Y Return (annualized) | - | +18.25% | |
| 5Y Return (annualized) | - | +12.51% | |
| Volatility (annualized) | 6.2% | 14.6% | |
| Max Drawdown | -5.3% | -58.8% | |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) | |
| Category | Allocation/Balanced | Equity | |
| Inception | May 28, 2025 | Nov 10, 2006 |
FTBI vs VYM Performance
First Trust Balanced Income ETF (FTBI) 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 FTBI returned +13.62% while VYM returned +26.12%. Year to date, FTBI is up 7.57% versus a gain of 15.80% for VYM.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 6.2% for FTBI. 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 -5.3% for FTBI 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 0.78. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FTBI charges 0.97% per year while VYM charges 0.04%. On a $10,000 position that is $97 vs $4 annually, a gap of $93 per year that compounds over a long holding period. On income, FTBI currently yields 7.32% against 2.86% for VYM.
Holdings Overlap
FTBI and VYM share 0 holdings out of 572 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FTBI or VYM?
FTBI has an expense ratio of 0.97% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $93 per year of difference.
Which performed better, FTBI or VYM?
Over the past year FTBI returned +13.62% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (1 years), FTBI annualized +15.80% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, FTBI or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 6.2% for FTBI. Worst drawdown: FTBI -5.3% vs VYM -58.8%.
Should I hold both FTBI and VYM?
FTBI and VYM have a monthly-return correlation of 0.78, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FTBI and VYM?
FTBI and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 572 unique securities.
Which pays a higher dividend, FTBI or VYM?
FTBI yields 7.32% while VYM yields 2.86%, so FTBI currently pays the higher dividend yield.
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