LQTI vs VYM
FT Vest Investment Grade & Target Income ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 616 holdings.
Side-by-Side Comparison
| Metric | LQTI | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.65% | 0.04% | |
| AUM | $270M | $81.6B | |
| Dividend Yield | 9.31% | 2.24% | |
| Holdings | 4 | 616 | |
| YTD Return | -0.86% | +15.34% | |
| 1Y Return | +1.59% | +23.24% | |
| 3Y Return (annualized) | - | +19.22% | |
| 5Y Return (annualized) | - | +12.21% | |
| Volatility (annualized) | 3.6% | 14.6% | |
| Max Drawdown | -3.4% | -58.8% | |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) | |
| Category | Alternative | Equity | |
| Inception | Feb 12, 2025 | Nov 10, 2006 |
LQTI vs VYM Performance
FT Vest Investment Grade & Target Income ETF (LQTI) 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 LQTI returned +1.59% while VYM returned +23.24%. Year to date, LQTI is down 0.86% versus a gain of 15.34% for VYM.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 3.6% for LQTI. 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 -3.4% for LQTI 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 0.51. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
LQTI 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, LQTI currently yields 9.31% against 2.24% for VYM.
Frequently Asked Questions
Which is cheaper, LQTI or VYM?
LQTI 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, LQTI or VYM?
Over the past year LQTI returned +1.59% vs +23.24% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (2 years), LQTI annualized +3.48% vs +7.04% for VYM. Past performance does not guarantee future results.
Which is riskier, LQTI or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 3.6% for LQTI. Worst drawdown: LQTI -3.4% vs VYM -58.8%.
Should I hold both LQTI and VYM?
LQTI and VYM have a monthly-return correlation of 0.51, so combining them can provide real diversification depending on your allocation goals.
Which pays a higher dividend, LQTI or VYM?
LQTI yields 9.31% while VYM yields 2.24%, so LQTI currently pays the higher dividend yield.
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