MDIV vs VYM
First Trust Multi-Asset Diversified Income Index Fund vs Vanguard High Dividend Yield ETF
Which is better, MDIV or VYM?
Equity-oriented Balanced against Large Cap Value.
VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window. VYM is less concentrated, with 26.1% of the fund in its ten largest positions against 32.6%.
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 | MDIV | VYM |
|---|---|---|
| Expense Ratio | 0.71% | 0.04%Best |
| AUM | $431M | $81.6B |
| Dividend Yield | 6.60% | 2.22% |
| Holdings | 125 | 613 |
| YTD Return | +8.54% | +10.96%Best |
| 1Y Return | +8.13% | +15.42%Best |
| 3Y Return (annualized) | +10.39% | +17.78%Best |
| 5Y Return (annualized) | +6.46% | +12.05%Best |
| Volatility (annualized) | 13.5% | 13.2%Best |
| Max Drawdown | -57.0% | -35.7%Best |
| $10,000 over 5 years | $13,675 | $17,663Best |
| Top 10 Weight | 32.6% | 26.1%Best |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) |
| Category | Allocation/Balanced | Equity |
| Style | Equity-oriented Balanced | Large Cap Value |
| Inception | Aug 13, 2012 | Nov 10, 2006 |
Volatility and max drawdown are measured over the window both funds cover: Aug 14, 2012 to Sep 22, 2026 (14.1 years).
MDIV 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 14.1 years both funds cover.
MDIV vs VYM Performance
First Trust Multi-Asset Diversified Income Index Fund (MDIV) 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 MDIV returned +8.13% while VYM returned +15.42%. Year to date, MDIV is up 8.54% versus a gain of 10.96% for VYM.
Over three years, MDIV compounded at +10.39% per year against +17.78% for VYM; over five years the annualized figures are +6.46% and +12.05% respectively. Across the full 14-year window we track, VYM has the edge at +9.80% annualized vs +0.98%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
MDIV has been the more volatile fund, with annualized monthly volatility of 13.5% compared with 13.2% 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 -57.0% for MDIV 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
MDIV charges 0.71% per year while VYM charges 0.04%. On a $10,000 position that is $71 vs $4 annually, a gap of $67 per year that compounds over a long holding period. On income, MDIV currently yields 6.60% against 2.22% for VYM.
Holdings Overlap
17.6% of MDIV's money is in holdings VYM also owns. 8.2% of VYM's money is in holdings MDIV also owns.
MDIV and VYM share little of their money.
44 positions in common, counted across the 123 positions we hold weights for in MDIV and 557 in VYM, against full books of 125 and 613.
What only one of them owns
Our book lists 484 positions for VYM that do not appear in our book for MDIV (88.9% of the fund), and 78 for MDIV that do not appear in VYM (81.9%).
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 MDIV | Weight in VYM | Difference |
|---|---|---|---|
| PMPhilip Morris International Inc. | 0.33% | 1.21% | 0.88% |
| VZVerizon Communic | 0.54% | 0.80% | 0.26% |
| PFEPfizer Inc | 0.63% | 0.58% | 0.05% |
| PEPPepsico Inc. | 0.31% | 0.77% | 0.46% |
| TBBAt&t Inc | 0.40% | 0.64% | 0.24% |
| MOAltria Group Inc | 0.51% | 0.46% | 0.05% |
| BMYBristol-Myers Squibb Co. | 0.43% | 0.54% | 0.11% |
| GISGeneral Mills In | 0.76% | 0.08% | 0.68% |
| MDTMedtronic Plc Ordinary Shares | 0.39% | 0.44% | 0.05% |
| KHCKraft Heinz Co. | 0.68% | 0.09% | 0.59% |
You are not choosing between two funds in isolation.
Whichever of MDIV and VYM you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, MDIV or VYM?
MDIV has an expense ratio of 0.71% while VYM charges 0.04%. VYM is the cheaper option, by $67 a year on a $10,000 investment.
Which performed better, MDIV or VYM?
Over the past year MDIV returned +8.13% vs +15.42% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (14 years), MDIV annualized +0.98% vs +9.80% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, MDIV or VYM?
MDIV has been the more volatile fund at 13.5% annualized versus 13.2% for VYM. Worst drawdown: MDIV -57.0% vs VYM -35.7%.
Should I hold both MDIV and VYM?
MDIV 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 MDIV and VYM?
17.6% of MDIV's money is in holdings VYM also owns. 8.2% of VYM's is in holdings MDIV also owns. They hold 44 positions in common, counted across the 123 positions we hold weights for in MDIV and 557 in VYM.
Which pays a higher dividend, MDIV or VYM?
MDIV yields 6.60% while VYM yields 2.22%, so MDIV currently pays the higher dividend yield.
Is VYM better than MDIV?
VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window. VYM is less concentrated, with 26.1% of the fund in its ten largest positions against 32.6%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.