KNG vs VYM

KNG vs VYM

Which is better, KNG or VYM?

VYM has been ahead.

VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.94. KNG is less concentrated, with 16.2% of the fund in its ten largest positions against 25.9%.

Lower Fees: VYMHigher Returns: VYMLess Concentrated: KNG

MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.

Side-by-Side Comparison

MetricKNGVYM
Expense Ratio0.74%0.04%Best
AUM$3.4B$81.6B
Dividend Yield8.28%2.24%
Holdings139613
YTD Return+5.63%+14.82%Best
1Y Return+7.00%+20.84%Best
3Y Return (annualized)+7.11%+18.64%Best
5Y Return (annualized)+5.00%+12.28%Best
Volatility (annualized)15.5%15.1%Best
Max Drawdown-35.1%Best-35.7%
$10,000 over 5 years$12,763$17,845Best
Top 10 Weight16.2%Best25.9%
Fund FamilyFirst Trust Portfolios (US)Vanguard (US)
CategoryEquityEquity
StyleLarge Cap ValueLarge Cap Value
InceptionMar 26, 2018Nov 10, 2006

Volatility and max drawdown are measured over the window both funds cover: Mar 27, 2018 to Sep 4, 2026 (8.4 years).

KNG vs VYM growth

Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 8.4 years both funds cover.

KNG vs VYM Performance

FT Vest S&P 500 Dividend Aristocrats Target Income ETF (KNG) is an ETF from First Trust Portfolios (US) and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year KNG returned +7.00% while VYM returned +20.84%. Year to date, KNG is up 5.63% versus a gain of 14.82% for VYM.

Over three years, KNG compounded at +7.11% per year against +18.64% for VYM; over five years the annualized figures are +5.00% and +12.28% respectively. Across the full 8-year window we track, VYM has the edge at +10.74% annualized vs +7.12%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

KNG has been the more volatile fund, with annualized monthly volatility of 15.5% compared with 15.1% 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 -35.1% for KNG and -35.7% for VYM. Drawdown depth is what each fund did in the worst stretch of the window measured above.

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

KNG charges 0.74% per year while VYM charges 0.04%. On a $10,000 position that is $74 vs $4 annually, a gap of $70 per year that compounds over a long holding period. On income, KNG currently yields 8.28% against 2.24% for VYM.

Holdings Overlap

KNG already in VYM71.3%
VYM already in KNG23.8%

71.3% of KNG's money is in holdings VYM also owns. 23.8% of VYM's money is in holdings KNG also owns.

Most of KNG is already inside VYM. Owning both mostly buys the same companies twice.

49 positions in common, counted across the 69 positions we hold weights for in KNG and 602 in VYM, against full books of 139 and 613.

What only one of them owns

Our book lists 520 positions for VYM that do not appear in our book for KNG (73.5% of the fund), and 18 for KNG that do not appear in VYM (26.4%).

Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.

Top Shared Holdings

StockWeight in KNGWeight in VYMDifference
JNJJohnson & Johnson - Common1.42%2.54%1.12%
XOMExxon Mobil Corp1.38%2.36%0.98%
CATCaterpillar, Inc.1.38%2.01%0.63%
ABBVAbbvie Inc.1.37%1.85%0.48%
PGProcter & Gamble Company1.39%1.42%0.03%
KOCoca-cola Co.1.49%1.31%0.18%
IBMIntl Business Machines Corp1.61%1.10%0.51%
CVXChevron Corp.United States -Energy1.36%1.28%0.08%
LINLinde Plc Ordinary Shares1.36%0.99%0.37%
MCDMcdonald'S Corp1.46%0.80%0.66%

71.3% of KNG is already inside VYM.

You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.

KNGVYM

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Frequently Asked Questions

Which is cheaper, KNG or VYM?

KNG has an expense ratio of 0.74% while VYM charges 0.04%. VYM is the cheaper option, by $70 a year on a $10,000 investment.

Which performed better, KNG or VYM?

Over the past year KNG returned +7.00% vs +20.84% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (8 years), KNG annualized +7.12% vs +10.74% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, KNG or VYM?

KNG has been the more volatile fund at 15.5% annualized versus 15.1% for VYM. Worst drawdown: KNG -35.1% vs VYM -35.7%.

Should I hold both KNG and VYM?

KNG and VYM have a monthly-return correlation of 0.94, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.

What is the holdings overlap between KNG and VYM?

71.3% of KNG's money is in holdings VYM also owns. 23.8% of VYM's is in holdings KNG also owns. They hold 49 positions in common, counted across the 69 positions we hold weights for in KNG and 602 in VYM.

Which pays a higher dividend, KNG or VYM?

KNG yields 8.28% while VYM yields 2.24%, so KNG currently pays the higher dividend yield.

Is VYM better than KNG?

VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.94. KNG is less concentrated, with 16.2% of the fund in its ten largest positions against 25.9%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.