LEGR vs VYM
First Trust Indxx Innovative Transaction & Process ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. LEGR delivered stronger 1-year returns. VYM offers more diversification with 616 holdings.
Side-by-Side Comparison
| Metric | LEGR | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.65% | 0.04% | |
| AUM | $131M | $81.6B | |
| Dividend Yield | 1.79% | 2.24% | |
| Holdings | 112 | 616 | |
| YTD Return | +11.29% | +14.66% | |
| 1Y Return | +23.81% | +22.16% | |
| 3Y Return (annualized) | +23.74% | +18.72% | |
| 5Y Return (annualized) | +11.95% | +12.18% | |
| Volatility (annualized) | 17.0% | 14.6% | |
| Max Drawdown | -36.1% | -58.8% | |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) | |
| Category | Alternative | Equity | |
| Inception | Jan 25, 2018 | Nov 10, 2006 |
LEGR vs VYM Performance
First Trust Indxx Innovative Transaction & Process ETF (LEGR) 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 LEGR returned +23.81% while VYM returned +22.16%. Year to date, LEGR is up 11.29% versus a gain of 14.66% for VYM.
Over three years, LEGR compounded at +23.74% per year against +18.72% for VYM; over five years the annualized figures are +11.95% and +12.18% respectively. Across the full 9-year window we track, LEGR has the edge at +11.34% annualized vs +7.01%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
LEGR has been the more volatile fund, with annualized monthly volatility of 17.0% 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 -36.1% for LEGR 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 0.85. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
LEGR charges 0.65% per year while VYM charges 0.04%. On a $10,000 position that is $65 vs $4 annually, a gap of $61 per year that compounds over a long holding period. On income, LEGR currently yields 1.79% against 2.24% for VYM.
Holdings Overlap
LEGR and VYM share 22 holdings out of 686 unique holdings combined, representing a 12.9% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, LEGR or VYM?
LEGR has an expense ratio of 0.65% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $61 per year of difference.
Which performed better, LEGR or VYM?
Over the past year LEGR returned +23.81% vs +22.16% for VYM, so LEGR leads on 1-year performance. Over the longest common window we track (9 years), LEGR annualized +11.34% vs +7.01% for VYM. Past performance does not guarantee future results.
Which is riskier, LEGR or VYM?
LEGR has been the more volatile fund at 17.0% annualized versus 14.6% for VYM. Worst drawdown: LEGR -36.1% vs VYM -58.8%.
Should I hold both LEGR and VYM?
LEGR and VYM have a monthly-return correlation of 0.85, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between LEGR and VYM?
LEGR and VYM share 22 common holdings with a 12.9% weight overlap. Combined, they hold 686 unique securities.
Which pays a higher dividend, LEGR or VYM?
LEGR yields 1.79% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.
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