Quick Verdict

VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.

Lower Fees: VYMHigher Returns: VYMMore Diversified: VYM

Side-by-Side Comparison

MetricGDECVYMWinner
Expense Ratio0.85%0.04%
AUM$436M$79.0B
Dividend Yield0.00%2.86%
Holdings5568
YTD Return+7.10%+15.80%
1Y Return+13.69%+26.12%
3Y Return (annualized)-+18.25%
5Y Return (annualized)-+12.51%
Volatility (annualized)5.3%14.6%
Max Drawdown-10.6%-58.8%
Fund FamilyFirst Trust Portfolios (US)Vanguard (US)
CategoryAlternativeEquity
InceptionDec 15, 2023Nov 10, 2006

GDEC vs VYM Performance

FT Vest US Equity Moderate Buffer ETF - December (GDEC) 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 GDEC returned +13.69% while VYM returned +26.12%. Year to date, GDEC is up 7.10% versus a gain of 15.80% for VYM.

Risk: Volatility and Drawdowns

VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 5.3% for GDEC. 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 -10.6% for GDEC 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 0.67. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

GDEC charges 0.85% per year while VYM charges 0.04%. On a $10,000 position that is $85 vs $4 annually, a gap of $81 per year that compounds over a long holding period. On income, GDEC currently yields 0.00% against 2.86% for VYM.

Holdings Overlap

0.0%overlap

GDEC and VYM share 0 holdings out of 559 unique holdings combined, representing a 0.0% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Frequently Asked Questions

Which is cheaper, GDEC or VYM?

GDEC has an expense ratio of 0.85% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $81 per year of difference.

Which performed better, GDEC or VYM?

Over the past year GDEC returned +13.69% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (3 years), GDEC annualized +11.89% vs +7.07% for VYM. Past performance does not guarantee future results.

Which is riskier, GDEC or VYM?

VYM has been the more volatile fund at 14.6% annualized versus 5.3% for GDEC. Worst drawdown: GDEC -10.6% vs VYM -58.8%.

Should I hold both GDEC and VYM?

GDEC and VYM have a monthly-return correlation of 0.67, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between GDEC and VYM?

GDEC and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 559 unique securities.

Which pays a higher dividend, GDEC or VYM?

GDEC yields 0.00% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.

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