FVD vs VYM
First Trust Value Line Dividend Index Fund 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 | FVD | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.62% | 0.04% | |
| AUM | $8.3B | $81.6B | |
| Dividend Yield | 2.23% | 2.24% | |
| Holdings | 253 | 616 | |
| YTD Return | +11.52% | +16.42% | |
| 1Y Return | +13.30% | +24.22% | |
| 3Y Return (annualized) | +11.60% | +19.03% | |
| 5Y Return (annualized) | +6.49% | +12.21% | |
| Volatility (annualized) | 13.4% | 14.6% | |
| Max Drawdown | -54.1% | -58.8% | |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Aug 19, 2003 | Nov 10, 2006 |
FVD vs VYM Performance
First Trust Value Line Dividend Index Fund (FVD) 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 FVD returned +13.30% while VYM returned +24.22%. Year to date, FVD is up 11.52% versus a gain of 16.42% for VYM.
Over three years, FVD compounded at +11.60% per year against +19.03% for VYM; over five years the annualized figures are +6.49% and +12.21% respectively. Across the full 20-year window we track, FVD has the edge at +7.11% annualized vs +7.10%. 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 13.4% for FVD. 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 -54.1% for FVD 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 0.94. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
FVD charges 0.62% per year while VYM charges 0.04%. On a $10,000 position that is $62 vs $4 annually, a gap of $58 per year that compounds over a long holding period. On income, FVD currently yields 2.23% against 2.24% for VYM.
Holdings Overlap
FVD and VYM share 158 holdings out of 695 unique holdings combined, representing a 29.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FVD or VYM?
FVD has an expense ratio of 0.62% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $58 per year of difference.
Which performed better, FVD or VYM?
Over the past year FVD returned +13.30% vs +24.22% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), FVD annualized +7.11% vs +7.10% for VYM. Past performance does not guarantee future results.
Which is riskier, FVD or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 13.4% for FVD. Worst drawdown: FVD -54.1% vs VYM -58.8%.
Should I hold both FVD and VYM?
FVD and VYM have a monthly-return correlation of 0.94, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between FVD and VYM?
FVD and VYM share 158 common holdings with a 29.1% weight overlap. Combined, they hold 695 unique securities.
Which pays a higher dividend, FVD or VYM?
FVD yields 2.23% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.
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