FTXO vs VYM
First Trust Nasdaq Bank ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. FTXO delivered stronger 1-year returns. VYM offers more diversification with 616 holdings.
Side-by-Side Comparison
| Metric | FTXO | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.60% | 0.04% | |
| AUM | $321M | $81.6B | |
| Dividend Yield | 1.72% | 2.24% | |
| Holdings | 51 | 616 | |
| YTD Return | +9.72% | +14.66% | |
| 1Y Return | +24.25% | +22.16% | |
| 3Y Return (annualized) | +27.38% | +18.72% | |
| 5Y Return (annualized) | +8.89% | +12.18% | |
| Volatility (annualized) | 27.1% | 14.6% | |
| Max Drawdown | -57.8% | -58.8% | |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Sep 20, 2016 | Nov 10, 2006 |
FTXO vs VYM Performance
First Trust Nasdaq Bank ETF (FTXO) 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 FTXO returned +24.25% while VYM returned +22.16%. Year to date, FTXO is up 9.72% versus a gain of 14.66% for VYM.
Over three years, FTXO compounded at +27.38% per year against +18.72% for VYM; over five years the annualized figures are +8.89% and +12.18% respectively. Across the full 10-year window we track, FTXO has the edge at +8.89% annualized vs +7.01%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FTXO has been the more volatile fund, with annualized monthly volatility of 27.1% compared with 14.6% for VYM. 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 -57.8% for FTXO 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 0.77. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FTXO charges 0.60% per year while VYM charges 0.04%. On a $10,000 position that is $60 vs $4 annually, a gap of $56 per year that compounds over a long holding period. On income, FTXO currently yields 1.72% against 2.24% for VYM.
Holdings Overlap
FTXO and VYM share 43 holdings out of 610 unique holdings combined, representing a 9.7% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FTXO or VYM?
FTXO has an expense ratio of 0.60% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $56 per year of difference.
Which performed better, FTXO or VYM?
Over the past year FTXO returned +24.25% vs +22.16% for VYM, so FTXO leads on 1-year performance. Over the longest common window we track (10 years), FTXO annualized +8.89% vs +7.01% for VYM. Past performance does not guarantee future results.
Which is riskier, FTXO or VYM?
FTXO has been the more volatile fund at 27.1% annualized versus 14.6% for VYM. Worst drawdown: FTXO -57.8% vs VYM -58.8%.
Should I hold both FTXO and VYM?
FTXO and VYM have a monthly-return correlation of 0.77, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FTXO and VYM?
FTXO and VYM share 43 common holdings with a 9.7% weight overlap. Combined, they hold 610 unique securities.
Which pays a higher dividend, FTXO or VYM?
FTXO yields 1.72% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.
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