FTLS vs VYM
First Trust Long/Short Equity 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 | FTLS | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 1.38% | 0.04% | |
| AUM | $2.5B | $81.6B | |
| Dividend Yield | 0.88% | 2.24% | |
| Holdings | 363 | 616 | |
| YTD Return | +8.53% | +14.95% | |
| 1Y Return | +14.04% | +21.14% | |
| 3Y Return (annualized) | +14.75% | +18.69% | |
| 5Y Return (annualized) | +10.37% | +12.00% | |
| Volatility (annualized) | 8.8% | 14.6% | |
| Max Drawdown | -20.5% | -58.8% | |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) | |
| Category | Alternative | Equity | |
| Inception | Sep 8, 2014 | Nov 10, 2006 |
FTLS vs VYM Performance
First Trust Long/Short Equity ETF (FTLS) 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 FTLS returned +14.04% while VYM returned +21.14%. Year to date, FTLS is up 8.53% versus a gain of 14.95% for VYM.
Over three years, FTLS compounded at +14.75% per year against +18.69% for VYM; over five years the annualized figures are +10.37% and +12.00% respectively. Across the full 12-year window we track, FTLS has the edge at +8.70% annualized vs +7.01%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 8.8% 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 -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 0.83. 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 0.88% against 2.24% for VYM.
Holdings Overlap
FTLS and VYM share 100 holdings out of 857 unique holdings combined, representing a 19.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
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. On a $10,000 investment, that is $134 per year of difference.
Which performed better, FTLS or VYM?
Over the past year FTLS returned +14.04% vs +21.14% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (12 years), FTLS annualized +8.70% vs +7.01% for VYM. Past performance does not guarantee future results.
Which is riskier, FTLS or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 8.8% for FTLS. Worst drawdown: FTLS -20.5% vs VYM -58.8%.
Should I hold both FTLS and VYM?
FTLS and VYM have a monthly-return correlation of 0.83, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FTLS and VYM?
FTLS and VYM share 100 common holdings with a 19.4% weight overlap. Combined, they hold 857 unique securities.
Which pays a higher dividend, FTLS or VYM?
FTLS yields 0.88% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.