NFTY vs VYM
NFTY vs VYM
First Trust India Nifty 50 Equal Weight 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 558 holdings.
Side-by-Side Comparison
| Metric | NFTY | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.81% | 0.04% | |
| AUM | $116M | $79.0B | |
| Dividend Yield | 1.90% | 2.86% | |
| Holdings | 52 | 568 | |
| YTD Return | -5.49% | +15.80% | |
| 1Y Return | -1.02% | +26.12% | |
| 3Y Return (annualized) | +6.17% | +18.25% | |
| 5Y Return (annualized) | +5.88% | +12.51% | |
| Volatility (annualized) | 17.9% | 14.6% | |
| Max Drawdown | -50.6% | -58.8% | |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Feb 14, 2012 | Nov 10, 2006 |
NFTY vs VYM Performance
First Trust India Nifty 50 Equal Weight ETF (NFTY) 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 NFTY returned -1.02% while VYM returned +26.12%. Year to date, NFTY is down 5.49% versus a gain of 15.80% for VYM.
Over three years, NFTY compounded at +6.17% per year against +18.25% for VYM; over five years the annualized figures are +5.88% and +12.51% respectively. Across the full 14-year window we track, VYM has the edge at +7.07% annualized vs +4.92%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
NFTY 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 -50.6% for NFTY 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 0.52. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
NFTY charges 0.81% per year while VYM charges 0.04%. On a $10,000 position that is $81 vs $4 annually, a gap of $77 per year that compounds over a long holding period. On income, NFTY currently yields 1.90% against 2.86% for VYM.
Holdings Overlap
NFTY and VYM share 0 holdings out of 608 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, NFTY or VYM?
NFTY has an expense ratio of 0.81% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $77 per year of difference.
Which performed better, NFTY or VYM?
Over the past year NFTY returned -1.02% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (14 years), NFTY annualized +4.92% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, NFTY or VYM?
NFTY has been the more volatile fund at 17.9% annualized versus 14.6% for VYM. Worst drawdown: NFTY -50.6% vs VYM -58.8%.
Should I hold both NFTY and VYM?
NFTY and VYM have a monthly-return correlation of 0.52, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between NFTY and VYM?
NFTY and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 608 unique securities.
Which pays a higher dividend, NFTY or VYM?
NFTY yields 1.90% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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