KNGZ vs VYM

KNGZ vs VYM

Which is better, KNGZ or VYM?

Nearly the same fund. VYM costs less.

VYM has a lower expense ratio. KNGZ led over 1Y and the full window, VYM over 3Y and 5Y. The two have moved almost in lockstep, correlation 0.95. VYM is less concentrated, with 26.1% of the fund in its ten largest positions against 36.2%.

Lower Fees: VYMHigher Returns: splitLess Concentrated: VYM

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

MetricKNGZVYM
Expense Ratio0.50%0.04%Best
AUM$67M$81.6B
Dividend Yield2.43%2.22%
Holdings198613
YTD Return+19.29%Best+13.08%
1Y Return+22.57%Best+17.46%
3Y Return (annualized)+17.49%+17.73%Best
5Y Return (annualized)+10.61%+12.22%Best
Volatility (annualized)17.0%14.7%Best
Max Drawdown-37.5%-35.7%Best
$10,000 over 5 years$16,557$17,797Best
Top 10 Weight36.2%26.1%Best
Fund FamilyFirst Trust Portfolios (US)Vanguard (US)
CategoryEquityEquity
StyleLarge Cap ValueLarge Cap Value
InceptionJun 20, 2017Nov 10, 2006

Volatility and max drawdown are measured over the window both funds cover: Jun 22, 2017 to Sep 14, 2026 (9.2 years).

KNGZ 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 9.2 years both funds cover.

KNGZ vs VYM Performance

First Trust S&P 500 Diversified Dividend Aristocrats ETF (KNGZ) 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 KNGZ returned +22.57% while VYM returned +17.46%. Year to date, KNGZ is up 19.29% versus a gain of 13.08% for VYM.

Over three years, KNGZ compounded at +17.49% per year against +17.73% for VYM; over five years the annualized figures are +10.61% and +12.22% respectively. Across the full 9-year window we track, KNGZ has the edge at +10.21% annualized vs +9.96%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

KNGZ has been the more volatile fund, with annualized monthly volatility of 17.0% compared with 14.7% 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 -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 0.95. 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 2.43% against 2.22% for VYM.

Holdings Overlap

KNGZ already in VYM91.6%
VYM already in KNGZ41.3%

91.6% of KNGZ's money is in holdings VYM also owns. 41.3% of VYM's money is in holdings KNGZ also owns.

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

86 positions in common, counted across the 98 positions we hold weights for in KNGZ and 557 in VYM, against full books of 198 and 613.

What only one of them owns

Our book lists 443 positions for VYM that do not appear in our book for KNGZ (56.1% of the fund), and 11 for KNGZ that do not appear in VYM (7.7%).

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 KNGZWeight in VYMDifference
AVGOBroadcom Inc0.96%7.35%6.39%
ACN:IEAccenture PLC Cl A5.14%0.41%4.73%
IBMInternational Business Machines Corp.4.32%0.85%3.47%
HPQHp Inc.4.54%0.10%4.44%
VZVerizon Communic3.78%0.80%2.98%
QCOMQualcomm Inc.3.59%0.63%2.96%
TXNTexas Instrument Inc3.10%1.02%2.08%
ORCLOracle Corp - Common2.73%0.90%1.83%
CMCSAComcast Corp-class A Cmcsa3.05%0.34%2.71%
MCHPMicrochip Technology Inc.3.20%0.16%3.04%

91.6% of KNGZ 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.

KNGZVYM

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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, by $46 a year on a $10,000 investment.

Which performed better, KNGZ or VYM?

Over the past year KNGZ returned +22.57% vs +17.46% for VYM, so KNGZ leads on 1-year performance. Over the longest common window we track (9 years), KNGZ annualized +10.21% vs +9.96% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, KNGZ or VYM?

KNGZ has been the more volatile fund at 17.0% annualized versus 14.7% for VYM. Worst drawdown: KNGZ -37.5% vs VYM -35.7%.

Should I hold both KNGZ and VYM?

KNGZ and VYM have a monthly-return correlation of 0.95, 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 KNGZ and VYM?

91.6% of KNGZ's money is in holdings VYM also owns. 41.3% of VYM's is in holdings KNGZ also owns. They hold 86 positions in common, counted across the 98 positions we hold weights for in KNGZ and 557 in VYM.

Which pays a higher dividend, KNGZ or VYM?

KNGZ yields 2.43% while VYM yields 2.22%, so KNGZ currently pays the higher dividend yield.

Is VYM better than KNGZ?

VYM has a lower expense ratio. KNGZ led over 1Y and the full window, VYM over 3Y and 5Y. The two have moved almost in lockstep, correlation 0.95. VYM is less concentrated, with 26.1% of the fund in its ten largest positions against 36.2%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.