FYT vs VYM
First Trust Small Cap Value AlphaDEX Fund vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. FYT delivered stronger 1-year returns. VYM offers more diversification with 616 holdings.
Side-by-Side Comparison
| Metric | FYT | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.70% | 0.04% | |
| AUM | $202M | $81.6B | |
| Dividend Yield | 1.43% | 2.24% | |
| Holdings | 263 | 616 | |
| YTD Return | +27.85% | +15.75% | |
| 1Y Return | +35.90% | +23.85% | |
| 3Y Return (annualized) | +16.27% | +19.14% | |
| 5Y Return (annualized) | +9.45% | +12.45% | |
| Volatility (annualized) | 22.4% | 14.6% | |
| Max Drawdown | -51.7% | -58.8% | |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Apr 19, 2011 | Nov 10, 2006 |
FYT vs VYM Performance
First Trust Small Cap Value AlphaDEX Fund (FYT) 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 FYT returned +35.90% while VYM returned +23.85%. Year to date, FYT is up 27.85% versus a gain of 15.75% for VYM.
Over three years, FYT compounded at +16.27% per year against +19.14% for VYM; over five years the annualized figures are +9.45% and +12.45% respectively. Across the full 15-year window we track, FYT has the edge at +9.25% annualized vs +7.06%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FYT has been the more volatile fund, with annualized monthly volatility of 22.4% 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 -51.7% for FYT 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 0.84. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FYT charges 0.70% per year while VYM charges 0.04%. On a $10,000 position that is $70 vs $4 annually, a gap of $66 per year that compounds over a long holding period. On income, FYT currently yields 1.43% against 2.24% for VYM.
Holdings Overlap
FYT and VYM share 92 holdings out of 771 unique holdings combined, representing a 1.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FYT or VYM?
FYT has an expense ratio of 0.70% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $66 per year of difference.
Which performed better, FYT or VYM?
Over the past year FYT returned +35.90% vs +23.85% for VYM, so FYT leads on 1-year performance. Over the longest common window we track (15 years), FYT annualized +9.25% vs +7.06% for VYM. Past performance does not guarantee future results.
Which is riskier, FYT or VYM?
FYT has been the more volatile fund at 22.4% annualized versus 14.6% for VYM. Worst drawdown: FYT -51.7% vs VYM -58.8%.
Should I hold both FYT and VYM?
FYT and VYM have a monthly-return correlation of 0.84, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FYT and VYM?
FYT and VYM share 92 common holdings with a 1.0% weight overlap. Combined, they hold 771 unique securities.
Which pays a higher dividend, FYT or VYM?
FYT yields 1.43% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.
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