FTCS vs VYM
First Trust Capital Strength 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 616 holdings.
Side-by-Side Comparison
| Metric | FTCS | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.53% | 0.04% | |
| AUM | $8.0B | $81.6B | |
| Dividend Yield | 1.08% | 2.24% | |
| Holdings | 51 | 616 | |
| YTD Return | +10.15% | +14.84% | |
| 1Y Return | +10.47% | +20.88% | |
| 3Y Return (annualized) | +11.29% | +18.34% | |
| 5Y Return (annualized) | +6.28% | +12.04% | |
| Volatility (annualized) | 15.6% | 14.6% | |
| Max Drawdown | -54.1% | -58.8% | |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jul 6, 2006 | Nov 10, 2006 |
FTCS vs VYM Performance
First Trust Capital Strength ETF (FTCS) 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 FTCS returned +10.47% while VYM returned +20.88%. Year to date, FTCS is up 10.15% versus a gain of 14.84% for VYM.
Over three years, FTCS compounded at +11.29% per year against +18.34% for VYM; over five years the annualized figures are +6.28% and +12.04% respectively. Across the full 20-year window we track, FTCS has the edge at +8.79% annualized vs +7.01%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FTCS has been the more volatile fund, with annualized monthly volatility of 15.6% 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 -54.1% for FTCS 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 0.88. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FTCS charges 0.53% per year while VYM charges 0.04%. On a $10,000 position that is $53 vs $4 annually, a gap of $49 per year that compounds over a long holding period. On income, FTCS currently yields 1.08% against 2.24% for VYM.
Holdings Overlap
FTCS and VYM share 30 holdings out of 623 unique holdings combined, representing a 15.9% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FTCS or VYM?
FTCS has an expense ratio of 0.53% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $49 per year of difference.
Which performed better, FTCS or VYM?
Over the past year FTCS returned +10.47% vs +20.88% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), FTCS annualized +8.79% vs +7.01% for VYM. Past performance does not guarantee future results.
Which is riskier, FTCS or VYM?
FTCS has been the more volatile fund at 15.6% annualized versus 14.6% for VYM. Worst drawdown: FTCS -54.1% vs VYM -58.8%.
Should I hold both FTCS and VYM?
FTCS and VYM have a monthly-return correlation of 0.88, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FTCS and VYM?
FTCS and VYM share 30 common holdings with a 15.9% weight overlap. Combined, they hold 623 unique securities.
Which pays a higher dividend, FTCS or VYM?
FTCS yields 1.08% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.
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