FTHY vs VTI

Quick Verdict

VTI has a lower expense ratio. VTI delivered stronger 1-year returns. VTI offers more diversification with 2783 holdings.

Lower Fees: VTIHigher Returns: VTIMore Diversified: VTI

Side-by-Side Comparison

MetricFTHYVTIWinner
Expense Ratio3.59%0.03%
AUM$662M$663.5B
Dividend Yield10.63%1.07%
Holdings2943,543
YTD Return+2.21%+14.20%
1Y Return+2.32%+24.16%
3Y Return (annualized)+10.46%+21.12%
5Y Return (annualized)+2.28%+12.37%
Volatility (annualized)11.9%15.3%
Max Drawdown-31.2%-56.6%
Fund FamilyFirst Trust Portfolios (US)Vanguard (US)
CategoryFixed IncomeEquity
InceptionJun 25, 2020May 24, 2001

FTHY vs VTI Performance

First Trust High Yield Opportunities 2027 Term Fund (FTHY) is a ETF from First Trust Portfolios (US) and Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year FTHY returned +2.32% while VTI returned +24.16%. Year to date, FTHY is up 2.21% versus a gain of 14.20% for VTI.

Over three years, FTHY compounded at +10.46% per year against +21.12% for VTI; over five years the annualized figures are +2.28% and +12.37% respectively. Across the full 6-year window we track, VTI has the edge at +8.14% annualized vs +2.71%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VTI has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 11.9% for FTHY. 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 -31.2% for FTHY and -56.6% for VTI. 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 0.77. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

FTHY charges 3.59% per year while VTI charges 0.03%. On a $10,000 position that is $359 vs $3 annually, a gap of $356 per year that compounds over a long holding period. On income, FTHY currently yields 10.63% against 1.07% for VTI.

Holdings Overlap

0.0%overlap

FTHY and VTI share 0 holdings out of 3013 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, FTHY or VTI?

FTHY has an expense ratio of 3.59% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $356 per year of difference.

Which performed better, FTHY or VTI?

Over the past year FTHY returned +2.32% vs +24.16% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (6 years), FTHY annualized +2.71% vs +8.14% for VTI. Past performance does not guarantee future results.

Which is riskier, FTHY or VTI?

VTI has been the more volatile fund at 15.3% annualized versus 11.9% for FTHY. Worst drawdown: FTHY -31.2% vs VTI -56.6%.

Should I hold both FTHY and VTI?

FTHY and VTI have a monthly-return correlation of 0.77, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between FTHY and VTI?

FTHY and VTI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 3013 unique securities.

Which pays a higher dividend, FTHY or VTI?

FTHY yields 10.63% while VTI yields 1.07%, so FTHY currently pays the higher dividend yield.

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