FTDS vs VYM
First Trust Dividend 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 558 holdings.
Side-by-Side Comparison
| Metric | FTDS | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.70% | 0.04% | |
| AUM | $38M | $79.0B | |
| Dividend Yield | 1.67% | 2.86% | |
| Holdings | 51 | 568 | |
| YTD Return | +15.39% | +15.80% | |
| 1Y Return | +25.24% | +26.12% | |
| 3Y Return (annualized) | +15.93% | +18.25% | |
| 5Y Return (annualized) | +8.08% | +12.51% | |
| Volatility (annualized) | 17.5% | 14.6% | |
| Max Drawdown | -54.7% | -58.8% | |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Dec 5, 2006 | Nov 10, 2006 |
FTDS vs VYM Performance
First Trust Dividend Strength ETF (FTDS) 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 FTDS returned +25.24% while VYM returned +26.12%. Year to date, FTDS is up 15.39% versus a gain of 15.80% for VYM.
Over three years, FTDS compounded at +15.93% per year against +18.25% for VYM; over five years the annualized figures are +8.08% and +12.51% respectively. Across the full 20-year window we track, VYM has the edge at +7.07% annualized vs +6.77%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FTDS has been the more volatile fund, with annualized monthly volatility of 17.5% 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 -54.7% for FTDS 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 0.87. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FTDS charges 0.70% per year while VYM charges 0.04%. On a $10,000 position that is $70 vs $4 annually, a gap of $66 per year that compounds over a long holding period. On income, FTDS currently yields 1.67% against 2.86% for VYM.
Holdings Overlap
FTDS and VYM share 38 holdings out of 570 unique holdings combined, representing a 8.6% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FTDS or VYM?
FTDS has an expense ratio of 0.70% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $66 per year of difference.
Which performed better, FTDS or VYM?
Over the past year FTDS returned +25.24% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), FTDS annualized +6.77% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, FTDS or VYM?
FTDS has been the more volatile fund at 17.5% annualized versus 14.6% for VYM. Worst drawdown: FTDS -54.7% vs VYM -58.8%.
Should I hold both FTDS and VYM?
FTDS and VYM have a monthly-return correlation of 0.87, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FTDS and VYM?
FTDS and VYM share 38 common holdings with a 8.6% weight overlap. Combined, they hold 570 unique securities.
Which pays a higher dividend, FTDS or VYM?
FTDS yields 1.67% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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