FTRB vs VYM
Federated Hermes Total Return Bond ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. FTRB offers more diversification with 688 holdings.
Side-by-Side Comparison
| Metric | FTRB | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.39% | 0.04% | |
| AUM | $591M | $81.6B | |
| Dividend Yield | 4.38% | 2.24% | |
| Holdings | 688 | 616 | |
| YTD Return | -0.19% | +15.42% | |
| 1Y Return | +2.59% | +22.36% | |
| 3Y Return (annualized) | - | +19.06% | |
| 5Y Return (annualized) | - | +12.20% | |
| Volatility (annualized) | 4.3% | 14.6% | |
| Max Drawdown | -4.8% | -58.8% | |
| Fund Family | Federated Hermes | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jan 2, 2024 | Nov 10, 2006 |
FTRB vs VYM Performance
Federated Hermes Total Return Bond ETF (FTRB) is a ETF from Federated Hermes and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year FTRB returned +2.59% while VYM returned +22.36%. Year to date, FTRB is down 0.19% versus a gain of 15.42% for VYM.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 4.3% for FTRB. 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 -4.8% for FTRB 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 0.49. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FTRB charges 0.39% per year while VYM charges 0.04%. On a $10,000 position that is $39 vs $4 annually, a gap of $35 per year that compounds over a long holding period. On income, FTRB currently yields 4.38% against 2.24% for VYM.
Holdings Overlap
FTRB and VYM share 4 holdings out of 1160 unique holdings combined, representing a 0.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in FTRB | Weight in VYM | Difference |
|---|---|---|---|
| DIS 6.55 03/15/33 | 0.00% | 0.71% | 0.71% |
| TMUS | 0.15% | 0.34% | 0.19% |
| KR | 0.00% | 0.13% | 0.13% |
| MTCHII 5 12/15/27 14 | Pro | Pro | Pro |
Frequently Asked Questions
Which is cheaper, FTRB or VYM?
FTRB has an expense ratio of 0.39% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $35 per year of difference.
Which performed better, FTRB or VYM?
Over the past year FTRB returned +2.59% vs +22.36% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (3 years), FTRB annualized +3.73% vs +7.04% for VYM. Past performance does not guarantee future results.
Which is riskier, FTRB or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 4.3% for FTRB. Worst drawdown: FTRB -4.8% vs VYM -58.8%.
Should I hold both FTRB and VYM?
FTRB and VYM have a monthly-return correlation of 0.49, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FTRB and VYM?
FTRB and VYM share 4 common holdings with a 0.2% weight overlap. Combined, they hold 1160 unique securities.
Which pays a higher dividend, FTRB or VYM?
FTRB yields 4.38% while VYM yields 2.24%, so FTRB currently pays the higher dividend yield.
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