FTQI vs VYM
First Trust Nasdaq BuyWrite Income ETF vs Vanguard High Dividend Yield ETF
Which is better, FTQI or VYM?
Long-Short Strategy against Large Cap Value.
VYM has a lower expense ratio. FTQI led over 1Y, 3Y and 5Y, VYM over 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 | FTQI | VYM |
|---|---|---|
| Expense Ratio | 0.75% | 0.04%Best |
| AUM | $958M | $81.6B |
| Dividend Yield | 11.26% | 2.22% |
| Holdings | 183 | 613 |
| YTD Return | +16.73%Best | +11.47% |
| 1Y Return | +20.34%Best | +15.94% |
| 3Y Return (annualized) | +18.47%Best | +18.03% |
| 5Y Return (annualized) | +12.62%Best | +12.35% |
| Volatility (annualized) | 9.9%Best | 13.5% |
| Max Drawdown | -20.4%Best | -35.7% |
| $10,000 over 5 years | $18,117Best | $17,901 |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) |
| Category | Alternative | Equity |
| Style | Long-Short Strategy | Large Cap Value |
| Inception | Jan 6, 2014 | Nov 10, 2006 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Jan 7, 2014 to Sep 21, 2026 (12.7 years).
FTQI 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 12.7 years both funds cover.
FTQI vs VYM Performance
First Trust Nasdaq BuyWrite Income ETF (FTQI) 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 FTQI returned +20.34% while VYM returned +15.94%. Year to date, FTQI is up 16.73% versus a gain of 11.47% for VYM.
Over three years, FTQI compounded at +18.47% per year against +18.03% for VYM; over five years the annualized figures are +12.62% and +12.35% respectively. Across the full 13-year window we track, VYM has the edge at +9.09% annualized vs +5.31%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 13.5% compared with 9.9% for FTQI. 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 -20.4% for FTQI 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 0.74. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FTQI charges 0.75% per year while VYM charges 0.04%. On a $10,000 position that is $75 vs $4 annually, a gap of $71 per year that compounds over a long holding period. On income, FTQI currently yields 11.26% against 2.22% for VYM.
Holdings Overlap
At least 31.3% of VYM's money is in holdings FTQI also owns.
Stated as a floor: for FTQI, our book for it covers 95.0% 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.
49 positions in common, counted across the 175 positions we hold weights for in FTQI and 557 in VYM, against full books of 183 and 613.
Top Shared Holdings
| Stock | Weight in FTQI | Weight in VYM | Difference |
|---|---|---|---|
| AVGOBroadcom Inc | 1.99% | 7.35% | 5.36% |
| CSCOCisco Systems Inc. - Ordinary Shares | 3.14% | 1.86% | 1.28% |
| ABBVAbbvie Inc. | 1.29% | 1.80% | 0.51% |
| XOMExxon Mobil Corp. | 0.13% | 2.63% | 2.50% |
| JNJJohnson & Johnson - Common | 0.20% | 2.51% | 2.31% |
| CATCaterpillar, Inc. | 0.78% | 1.50% | 0.72% |
| GILDGilead Sciences | 1.20% | 0.66% | 0.54% |
| AMGNAmgen Inc. | 0.99% | 0.78% | 0.21% |
| TXNTexas Instrument Inc | 0.74% | 1.02% | 0.28% |
| CVXChevron Corp | 0.13% | 1.48% | 1.35% |
31.3% of VYM is already inside FTQI.
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, FTQI or VYM?
FTQI has an expense ratio of 0.75% while VYM charges 0.04%. VYM is the cheaper option, by $71 a year on a $10,000 investment.
Which performed better, FTQI or VYM?
Over the past year FTQI returned +20.34% vs +15.94% for VYM, so FTQI leads on 1-year performance. Over the longest common window we track (13 years), FTQI annualized +5.31% vs +9.09% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FTQI or VYM?
VYM has been the more volatile fund at 13.5% annualized versus 9.9% for FTQI. Worst drawdown: FTQI -20.4% vs VYM -35.7%.
Should I hold both FTQI and VYM?
FTQI and VYM have a monthly-return correlation of 0.74, 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 FTQI and VYM?
At least 31.3% of VYM's money is in holdings FTQI also owns. Our book for FTQI is partial, so the real figure is this or higher. They hold 49 positions in common, counted across the 175 positions we hold weights for in FTQI and 557 in VYM.
Which pays a higher dividend, FTQI or VYM?
FTQI yields 11.26% while VYM yields 2.22%, so FTQI currently pays the higher dividend yield.
Is VYM better than FTQI?
VYM has a lower expense ratio. FTQI led over 1Y, 3Y and 5Y, VYM over the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.