FTQI vs VYM
First Trust Nasdaq BuyWrite Income ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. FTQI delivered stronger 1-year returns. VYM offers more diversification with 613 holdings.
Side-by-Side Comparison
| Metric | FTQI | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.75% | 0.04% | |
| AUM | $955M | $81.6B | |
| Dividend Yield | 11.30% | 2.24% | |
| Holdings | 183 | 613 | |
| YTD Return | +12.87% | +14.57% | |
| 1Y Return | +21.33% | +21.08% | |
| 3Y Return (annualized) | +16.08% | +18.16% | |
| 5Y Return (annualized) | +11.47% | +12.00% | |
| Volatility (annualized) | 10.0% | 14.6% | |
| Max Drawdown | -20.4% | -58.8% | |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) | |
| Category | Alternative | Equity | |
| Inception | Jan 6, 2014 | Nov 10, 2006 |
FTQI vs VYM Performance
First Trust Nasdaq BuyWrite Income ETF (FTQI) 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 FTQI returned +21.33% while VYM returned +21.08%. Year to date, FTQI is up 12.87% versus a gain of 14.57% for VYM.
Over three years, FTQI compounded at +16.08% per year against +18.16% for VYM; over five years the annualized figures are +11.47% and +12.00% respectively. Across the full 13-year window we track, VYM has the edge at +6.99% annualized vs +5.05%. 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 10.0% 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 -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 0.75. 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 11.30% against 2.24% for VYM.
Holdings Overlap
FTQI and VYM share 49 holdings out of 730 unique holdings combined, representing a 13.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
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. On a $10,000 investment, that is $71 per year of difference.
Which performed better, FTQI or VYM?
Over the past year FTQI returned +21.33% vs +21.08% for VYM, so FTQI leads on 1-year performance. Over the longest common window we track (13 years), FTQI annualized +5.05% vs +6.99% for VYM. Past performance does not guarantee future results.
Which is riskier, FTQI or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 10.0% for FTQI. Worst drawdown: FTQI -20.4% vs VYM -58.8%.
Should I hold both FTQI and VYM?
FTQI and VYM have a monthly-return correlation of 0.75, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FTQI and VYM?
FTQI and VYM share 49 common holdings with a 13.3% weight overlap. Combined, they hold 730 unique securities.
Which pays a higher dividend, FTQI or VYM?
FTQI yields 11.30% while VYM yields 2.24%, so FTQI currently pays the higher dividend yield.
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