MISL 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

MetricMISLVYMWinner
Expense Ratio0.60%0.04%
AUM$750M$79.0B
Dividend Yield0.34%2.86%
Holdings39568
YTD Return+6.46%+15.80%
1Y Return+23.18%+26.12%
3Y Return (annualized)+26.85%+18.25%
5Y Return (annualized)-+12.51%
Volatility (annualized)17.9%14.6%
Max Drawdown-17.9%-58.8%
Fund FamilyFirst Trust Portfolios (US)Vanguard (US)
CategoryEquityEquity
InceptionOct 25, 2022Nov 10, 2006

MISL vs VYM Performance

First Trust Indxx Aerospace & Defense ETF (MISL) 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 MISL returned +23.18% while VYM returned +26.12%. Year to date, MISL is up 6.46% versus a gain of 15.80% for VYM.

Over three years, MISL compounded at +26.85% per year against +18.25% for VYM. Across the full 4-year window we track, MISL has the edge at +25.13% annualized vs +7.07%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

MISL has been the more volatile fund, with annualized monthly volatility of 17.9% 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 -17.9% for MISL 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 0.50. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

MISL charges 0.60% per year while VYM charges 0.04%. On a $10,000 position that is $60 vs $4 annually, a gap of $56 per year that compounds over a long holding period. On income, MISL currently yields 0.34% against 2.86% for VYM.

Holdings Overlap

1.9%overlap

MISL and VYM share 6 holdings out of 591 unique holdings combined, representing a 1.9% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in MISLWeight in VYMDifference
LMT6.46%0.60%5.86%
GD4.19%0.40%3.79%
NOC3.04%0.43%2.61%
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Frequently Asked Questions

Which is cheaper, MISL or VYM?

MISL has an expense ratio of 0.60% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $56 per year of difference.

Which performed better, MISL or VYM?

Over the past year MISL returned +23.18% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (4 years), MISL annualized +25.13% vs +7.07% for VYM. Past performance does not guarantee future results.

Which is riskier, MISL or VYM?

MISL has been the more volatile fund at 17.9% annualized versus 14.6% for VYM. Worst drawdown: MISL -17.9% vs VYM -58.8%.

Should I hold both MISL and VYM?

MISL and VYM have a monthly-return correlation of 0.50, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between MISL and VYM?

MISL and VYM share 6 common holdings with a 1.9% weight overlap. Combined, they hold 591 unique securities.

Which pays a higher dividend, MISL or VYM?

MISL yields 0.34% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.

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