KNGZ vs VYM
First Trust S&P 500 Diversified Dividend Aristocrats ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. KNGZ delivered stronger 1-year returns. VYM offers more diversification with 616 holdings.
Side-by-Side Comparison
| Metric | KNGZ | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.50% | 0.04% | |
| AUM | $67M | $81.6B | |
| Dividend Yield | 2.52% | 2.24% | |
| Holdings | 99 | 616 | |
| YTD Return | +19.83% | +15.34% | |
| 1Y Return | +25.76% | +23.24% | |
| 3Y Return (annualized) | +17.80% | +19.22% | |
| 5Y Return (annualized) | +10.25% | +12.21% | |
| Volatility (annualized) | 17.1% | 14.6% | |
| Max Drawdown | -37.5% | -58.8% | |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jun 20, 2017 | Nov 10, 2006 |
KNGZ vs VYM Performance
First Trust S&P 500 Diversified Dividend Aristocrats ETF (KNGZ) 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 KNGZ returned +25.76% while VYM returned +23.24%. Year to date, KNGZ is up 19.83% versus a gain of 15.34% for VYM.
Over three years, KNGZ compounded at +17.80% per year against +19.22% for VYM; over five years the annualized figures are +10.25% and +12.21% respectively. Across the full 9-year window we track, KNGZ has the edge at +10.34% annualized vs +7.04%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
KNGZ has been the more volatile fund, with annualized monthly volatility of 17.1% 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 -37.5% for KNGZ 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 0.95. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
KNGZ charges 0.50% per year while VYM charges 0.04%. On a $10,000 position that is $50 vs $4 annually, a gap of $46 per year that compounds over a long holding period. On income, KNGZ currently yields 2.52% against 2.24% for VYM.
Holdings Overlap
KNGZ and VYM share 87 holdings out of 614 unique holdings combined, representing a 27.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, KNGZ or VYM?
KNGZ has an expense ratio of 0.50% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $46 per year of difference.
Which performed better, KNGZ or VYM?
Over the past year KNGZ returned +25.76% vs +23.24% for VYM, so KNGZ leads on 1-year performance. Over the longest common window we track (9 years), KNGZ annualized +10.34% vs +7.04% for VYM. Past performance does not guarantee future results.
Which is riskier, KNGZ or VYM?
KNGZ has been the more volatile fund at 17.1% annualized versus 14.6% for VYM. Worst drawdown: KNGZ -37.5% vs VYM -58.8%.
Should I hold both KNGZ and VYM?
KNGZ and VYM have a monthly-return correlation of 0.95, 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 KNGZ and VYM?
KNGZ and VYM share 87 common holdings with a 27.1% weight overlap. Combined, they hold 614 unique securities.
Which pays a higher dividend, KNGZ or VYM?
KNGZ yields 2.52% while VYM yields 2.24%, so KNGZ currently pays the higher dividend yield.
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