LEGR vs VYM
First Trust Indxx Innovative Transaction & Process ETF vs Vanguard High Dividend Yield ETF
Which is better, LEGR or VYM?
Multi Alternative against Large Cap Value.
VYM has a lower expense ratio. LEGR led over 3Y and the full window, VYM over 1Y and 5Y. LEGR is less concentrated, with 12.2% of the fund in its ten largest positions against 25.8%.
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
| Metric | LEGR | VYM |
|---|---|---|
| Expense Ratio | 0.65% | 0.04%Best |
| AUM | $128M | $78.9B |
| Dividend Yield | 1.84% | 2.37% |
| Holdings | 228 | 608 |
| YTD Return | +8.71% | +14.79%Best |
| 1Y Return | +12.80% | +19.71%Best |
| 3Y Return (annualized) | +22.79%Best | +19.69% |
| 5Y Return (annualized) | +10.29% | +11.38%Best |
| Volatility (annualized) | 16.8% | 15.2%Best |
| Max Drawdown | -36.1% | -35.7%Best |
| $10,000 over 5 years | $16,319 | $17,141Best |
| Top 10 Weight | 12.2%Best | 25.8% |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) |
| Category | Alternative | Equity |
| Style | Multi Alternative | Large Cap Value |
| Inception | Jan 25, 2018 | Nov 10, 2006 |
Volatility and max drawdown are measured over the window both funds cover: Jan 25, 2018 to Nov 3, 2026 (8.8 years).
LEGR 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 8.8 years both funds cover.
LEGR vs VYM Performance
First Trust Indxx Innovative Transaction & Process ETF (LEGR) 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 LEGR returned +12.80% while VYM returned +19.71%. Year to date, LEGR is up 8.71% versus a gain of 14.79% for VYM.
Over three years, LEGR compounded at +22.79% per year against +19.69% for VYM; over five years the annualized figures are +10.29% and +11.38% respectively. Across the full 9-year window we track, LEGR has the edge at +10.77% annualized vs +9.11%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
LEGR has been the more volatile fund, with annualized monthly volatility of 16.8% compared with 15.2% 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 -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 0.84. 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 1.84% against 2.37% for VYM.
Holdings Overlap
21.2% of LEGR's money is in holdings VYM also owns. 20.1% of VYM's money is in holdings LEGR also owns.
LEGR and VYM share little of their money.
22 positions in common, counted across the 103 positions we hold weights for in LEGR and 602 in VYM, against full books of 228 and 608.
What only one of them owns
Our book lists 553 positions for VYM that do not appear in our book for LEGR (78.2% of the fund), and 24 for LEGR that do not appear in VYM (24.7%).
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
| Stock | Weight in LEGR | Weight in VYM | Difference |
|---|---|---|---|
| JPMJpmorgan Chase | 0.84% | 3.83% | 2.99% |
| CSCOCisco Systems Inc. - Ordinary Shares | 1.24% | 1.76% | 0.52% |
| BACBank of America Corp.: Financials | 1.02% | 1.65% | 0.63% |
| HDHome Depot Inc/The | 1.10% | 1.32% | 0.22% |
| MSMorgan Stanley | 1.06% | 0.96% | 0.10% |
| GSGoldman Sachs Group Inc/The | 0.80% | 1.12% | 0.32% |
| BLKBlackrock Funding Inc/De | 1.18% | 0.71% | 0.47% |
| WFCWells Fargo & Co. | 0.81% | 1.07% | 0.26% |
| ORCLOracle Corp - Common | 0.83% | 1.03% | 0.20% |
| IBMInternational Business Machines Corp. | 0.85% | 0.89% | 0.04% |
21.2% of LEGR 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.
Free for up to 10 holdings. No account needed.
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, by $61 a year on a $10,000 investment.
Which performed better, LEGR or VYM?
Over the past year LEGR returned +12.80% vs +19.71% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (9 years), LEGR annualized +10.77% vs +9.11% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, LEGR or VYM?
LEGR has been the more volatile fund at 16.8% annualized versus 15.2% for VYM. Worst drawdown: LEGR -36.1% vs VYM -35.7%.
Should I hold both LEGR and VYM?
LEGR and VYM have a monthly-return correlation of 0.84, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between LEGR and VYM?
21.2% of LEGR's money is in holdings VYM also owns. 20.1% of VYM's is in holdings LEGR also owns. They hold 22 positions in common, counted across the 103 positions we hold weights for in LEGR and 602 in VYM.
Which pays a higher dividend, LEGR or VYM?
LEGR yields 1.84% while VYM yields 2.37%, so VYM currently pays the higher dividend yield.
Is VYM better than LEGR?
VYM has a lower expense ratio. LEGR led over 3Y and the full window, VYM over 1Y and 5Y. LEGR is less concentrated, with 12.2% of the fund in its ten largest positions against 25.8%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.