FTLS vs VYM
First Trust Long/Short Equity ETF vs Vanguard High Dividend Yield ETF
Which is better, FTLS or VYM?
Multi Alternative against Large Cap Value.
VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window.
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 | FTLS | VYM |
|---|---|---|
| Expense Ratio | 1.38% | 0.04%Best |
| AUM | $2.9B | $81.6B |
| Dividend Yield | 0.86% | 2.22% |
| Holdings | 363 | 613 |
| YTD Return | +8.34% | +11.35%Best |
| 1Y Return | +11.90% | +15.34%Best |
| 3Y Return (annualized) | +13.90% | +17.22%Best |
| 5Y Return (annualized) | +10.79% | +12.30%Best |
| Volatility (annualized) | 8.7%Best | 13.8% |
| Max Drawdown | -20.5%Best | -35.7% |
| $10,000 over 5 years | $16,692 | $17,861Best |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) |
| Category | Alternative | Equity |
| Style | Multi Alternative | Large Cap Value |
| Inception | Sep 8, 2014 | Nov 10, 2006 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Sep 9, 2014 to Sep 18, 2026 (12 years).
FTLS 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 12 years both funds cover.
FTLS vs VYM Performance
First Trust Long/Short Equity ETF (FTLS) 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 FTLS returned +11.90% while VYM returned +15.34%. Year to date, FTLS is up 8.34% versus a gain of 11.35% for VYM.
Over three years, FTLS compounded at +13.90% per year against +17.22% for VYM; over five years the annualized figures are +10.79% and +12.30% respectively. Across the full 12-year window we track, VYM has the edge at +8.89% annualized vs +8.64%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 13.8% compared with 8.7% for FTLS. 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 -20.5% for FTLS and -35.7% 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 0.83. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FTLS charges 1.38% per year while VYM charges 0.04%. On a $10,000 position that is $138 vs $4 annually, a gap of $134 per year that compounds over a long holding period. On income, FTLS currently yields 0.86% against 2.22% for VYM.
Holdings Overlap
At least 38.8% of VYM's money is in holdings FTLS also owns.
Stated as a floor: for FTLS, our book for it covers 94.8% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
The two portfolios partly overlap.
100 positions in common, counted across the 346 positions we hold weights for in FTLS and 557 in VYM, against full books of 363 and 613.
Top Shared Holdings
| Stock | Weight in FTLS | Weight in VYM | Difference |
|---|---|---|---|
| AVGOBroadcom Inc | 1.13% | 7.35% | 6.22% |
| JPMJpmorgan Chase | 0.88% | 3.82% | 2.94% |
| CSCOCisco Systems Inc. - Ordinary Shares | 1.84% | 1.86% | 0.02% |
| ABBVAbbvie Inc. | 1.75% | 1.80% | 0.05% |
| BACBank of America Corp.: Financials | 1.20% | 1.66% | 0.46% |
| MRKMerck & Company Inc | 1.49% | 1.31% | 0.18% |
| CCitigroup Inc. | 1.69% | 0.89% | 0.80% |
| VZVerizon Communic | 1.37% | 0.80% | 0.57% |
| DELLDell Technologies Inc | 1.66% | 0.50% | 1.16% |
| ADIAnalog Devices, Inc. | 1.20% | 0.73% | 0.47% |
38.8% of VYM is already inside FTLS.
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, FTLS or VYM?
FTLS has an expense ratio of 1.38% while VYM charges 0.04%. VYM is the cheaper option, by $134 a year on a $10,000 investment.
Which performed better, FTLS or VYM?
Over the past year FTLS returned +11.90% vs +15.34% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (12 years), FTLS annualized +8.64% vs +8.89% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FTLS or VYM?
VYM has been the more volatile fund at 13.8% annualized versus 8.7% for FTLS. Worst drawdown: FTLS -20.5% vs VYM -35.7%.
Should I hold both FTLS and VYM?
FTLS and VYM have a monthly-return correlation of 0.83, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between FTLS and VYM?
At least 38.8% of VYM's money is in holdings FTLS also owns. Our book for FTLS is partial, so the real figure is this or higher. They hold 100 positions in common, counted across the 346 positions we hold weights for in FTLS and 557 in VYM.
Which pays a higher dividend, FTLS or VYM?
FTLS yields 0.86% while VYM yields 2.22%, so VYM currently pays the higher dividend yield.
Is VYM better than FTLS?
VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.