HSMV vs VYM
First Trust Horizon Managed Volatility Small/Mid ETF 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 | HSMV | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.80% | 0.04% | |
| AUM | $41M | $81.6B | |
| Dividend Yield | 1.86% | 2.24% | |
| Holdings | 151 | 616 | |
| YTD Return | +10.00% | +14.66% | |
| 1Y Return | +9.08% | +22.16% | |
| 3Y Return (annualized) | +10.38% | +18.72% | |
| 5Y Return (annualized) | +5.10% | +12.18% | |
| Volatility (annualized) | 14.7% | 14.6% | |
| Max Drawdown | -19.2% | -58.8% | |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Apr 6, 2020 | Nov 10, 2006 |
HSMV vs VYM Performance
First Trust Horizon Managed Volatility Small/Mid ETF (HSMV) 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 HSMV returned +9.08% while VYM returned +22.16%. Year to date, HSMV is up 10.00% versus a gain of 14.66% for VYM.
Over three years, HSMV compounded at +10.38% per year against +18.72% for VYM; over five years the annualized figures are +5.10% and +12.18% respectively. Across the full 6-year window we track, HSMV has the edge at +11.42% annualized vs +7.01%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
HSMV has been the more volatile fund, with annualized monthly volatility of 14.7% 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 -19.2% for HSMV 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 0.90. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
HSMV charges 0.80% per year while VYM charges 0.04%. On a $10,000 position that is $80 vs $4 annually, a gap of $76 per year that compounds over a long holding period. On income, HSMV currently yields 1.86% against 2.24% for VYM.
Holdings Overlap
HSMV and VYM share 72 holdings out of 681 unique holdings combined, representing a 1.8% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, HSMV or VYM?
HSMV has an expense ratio of 0.80% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $76 per year of difference.
Which performed better, HSMV or VYM?
Over the past year HSMV returned +9.08% vs +22.16% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (6 years), HSMV annualized +11.42% vs +7.01% for VYM. Past performance does not guarantee future results.
Which is riskier, HSMV or VYM?
HSMV has been the more volatile fund at 14.7% annualized versus 14.6% for VYM. Worst drawdown: HSMV -19.2% vs VYM -58.8%.
Should I hold both HSMV and VYM?
HSMV and VYM have a monthly-return correlation of 0.90, 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 HSMV and VYM?
HSMV and VYM share 72 common holdings with a 1.8% weight overlap. Combined, they hold 681 unique securities.
Which pays a higher dividend, HSMV or VYM?
HSMV yields 1.86% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.
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