MDEV 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

MetricMDEVVYMWinner
Expense Ratio0.70%0.04%
AUM$3M$79.0B
Dividend Yield0.00%2.86%
Holdings53568
YTD Return-0.36%+15.80%
1Y Return+5.47%+26.12%
3Y Return (annualized)+1.52%+18.25%
5Y Return (annualized)-4.69%+12.51%
Volatility (annualized)19.3%14.6%
Max Drawdown-42.3%-58.8%
Fund FamilyFirst Trust Portfolios (US)Vanguard (US)
CategoryEquityEquity
InceptionJun 22, 2021Nov 10, 2006

MDEV vs VYM Performance

First Trust Indxx Medical Devices ETF (MDEV) 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 MDEV returned +5.47% while VYM returned +26.12%. Year to date, MDEV is down 0.36% versus a gain of 15.80% for VYM.

Over three years, MDEV compounded at +1.52% per year against +18.25% for VYM; over five years the annualized figures are -4.69% and +12.51% respectively. Across the full 5-year window we track, VYM has the edge at +7.07% annualized vs -3.61%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

MDEV has been the more volatile fund, with annualized monthly volatility of 19.3% 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 -42.3% for MDEV 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 0.74. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

MDEV charges 0.70% per year while VYM charges 0.04%. On a $10,000 position that is $70 vs $4 annually, a gap of $66 per year that compounds over a long holding period. On income, MDEV currently yields 0.00% against 2.86% for VYM.

Holdings Overlap

1.7%overlap

MDEV and VYM share 4 holdings out of 603 unique holdings combined, representing a 1.7% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in MDEVWeight in VYMDifference
ABT1.68%0.88%0.80%
MDT:IE1.95%0.55%1.40%
BDX1.82%0.22%1.60%
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Frequently Asked Questions

Which is cheaper, MDEV or VYM?

MDEV has an expense ratio of 0.70% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $66 per year of difference.

Which performed better, MDEV or VYM?

Over the past year MDEV returned +5.47% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (5 years), MDEV annualized -3.61% vs +7.07% for VYM. Past performance does not guarantee future results.

Which is riskier, MDEV or VYM?

MDEV has been the more volatile fund at 19.3% annualized versus 14.6% for VYM. Worst drawdown: MDEV -42.3% vs VYM -58.8%.

Should I hold both MDEV and VYM?

MDEV and VYM have a monthly-return correlation of 0.74, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between MDEV and VYM?

MDEV and VYM share 4 common holdings with a 1.7% weight overlap. Combined, they hold 603 unique securities.

Which pays a higher dividend, MDEV or VYM?

MDEV yields 0.00% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.

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