LTTI vs VYM

Quick Verdict

VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.

Lower Fees: VYMHigher Returns: VYMMore Diversified: VYM

Side-by-Side Comparison

MetricLTTIVYMWinner
Expense Ratio0.65%0.04%
AUM$15M$79.0B
Dividend Yield9.16%2.86%
Holdings5568
YTD Return-3.44%+15.80%
1Y Return-2.34%+26.12%
3Y Return (annualized)-+18.25%
5Y Return (annualized)-+12.51%
Volatility (annualized)8.0%14.6%
Max Drawdown-9.0%-58.8%
Fund FamilyFirst Trust Portfolios (US)Vanguard (US)
CategoryAlternativeEquity
InceptionFeb 12, 2025Nov 10, 2006

LTTI vs VYM Performance

FT Vest 20+ Year Treasury & Target Income ETF (LTTI) 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 LTTI returned -2.34% while VYM returned +26.12%. Year to date, LTTI is down 3.44% versus a gain of 15.80% for VYM.

Risk: Volatility and Drawdowns

VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 8.0% for LTTI. 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 -9.0% for LTTI 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 0.29. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

LTTI 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, LTTI currently yields 9.16% against 2.86% for VYM.

Frequently Asked Questions

Which is cheaper, LTTI or VYM?

LTTI 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, LTTI or VYM?

Over the past year LTTI returned -2.34% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (2 years), LTTI annualized -1.14% vs +7.07% for VYM. Past performance does not guarantee future results.

Which is riskier, LTTI or VYM?

VYM has been the more volatile fund at 14.6% annualized versus 8.0% for LTTI. Worst drawdown: LTTI -9.0% vs VYM -58.8%.

Should I hold both LTTI and VYM?

LTTI and VYM have a monthly-return correlation of 0.29, so combining them can provide real diversification depending on your allocation goals.

Which pays a higher dividend, LTTI or VYM?

LTTI yields 9.16% while VYM yields 2.86%, so LTTI currently pays the higher dividend yield.

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