NXTG vs VYM
First Trust Indxx NextG ETF vs Vanguard High Dividend Yield ETF
Which is better, NXTG or VYM?
Large Cap Blend against Large Cap Value.
VYM has a lower expense ratio. NXTG led over 1Y, 3Y, 5Y and the full window. NXTG is less concentrated, with 15.5% of the fund in its ten largest positions against 25.9%.
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 | NXTG | VYM |
|---|---|---|
| Expense Ratio | 0.70% | 0.04%Best |
| AUM | $565M | $81.6B |
| Dividend Yield | 1.27% | 2.24% |
| Holdings | 217 | 613 |
| YTD Return | +42.41%Best | +14.82% |
| 1Y Return | +57.87%Best | +20.84% |
| 3Y Return (annualized) | +32.32%Best | +18.64% |
| 5Y Return (annualized) | +16.33%Best | +12.28% |
| Volatility (annualized) | 17.3% | 12.9%Best |
| Max Drawdown | -33.6%Best | -35.7% |
| $10,000 over 5 years | $21,304Best | $17,845 |
| Top 10 Weight | 15.5%Best | 25.9% |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Value |
| Inception | Feb 17, 2011 | Nov 10, 2006 |
Volatility and max drawdown are measured over the window both funds cover: Feb 22, 2011 to Sep 4, 2026 (15.5 years).
NXTG 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 15.5 years both funds cover.
NXTG vs VYM Performance
First Trust Indxx NextG ETF (NXTG) 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 NXTG returned +57.87% while VYM returned +20.84%. Year to date, NXTG is up 42.41% versus a gain of 14.82% for VYM.
Over three years, NXTG compounded at +32.32% per year against +18.64% for VYM; over five years the annualized figures are +16.33% and +12.28% respectively. Across the full 16-year window we track, NXTG has the edge at +12.05% annualized vs +9.97%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
NXTG has been the more volatile fund, with annualized monthly volatility of 17.3% compared with 12.9% 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 -33.6% for NXTG 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 0.69. They move together some of the time, and apart the rest.
Fees and Cost Over Time
NXTG 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, NXTG currently yields 1.27% against 2.24% for VYM.
Holdings Overlap
12.9% of NXTG's money is in holdings VYM also owns. 14.4% of VYM's money is in holdings NXTG also owns.
VYM and NXTG share little of their money.
12 positions in common, counted across the 99 positions we hold weights for in NXTG and 602 in VYM, against full books of 217 and 613.
What only one of them owns
Our book lists 557 positions for VYM that do not appear in our book for NXTG (82.9% of the fund), and 25 for NXTG that do not appear in VYM (28.1%).
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 NXTG | Weight in VYM | Difference |
|---|---|---|---|
| AVGOBroadcom Inc | 1.48% | 7.29% | 5.81% |
| CSCOCisco Systems Inc | 1.35% | 1.93% | 0.58% |
| IBMIntl Business Machines Corp | 1.14% | 1.10% | 0.04% |
| ADIAnalog Devices, Inc. | 1.27% | 0.80% | 0.47% |
| QCOMQualcomm | 1.09% | 0.81% | 0.28% |
| HPEHewlett Packard Enterprise Co. | 1.54% | 0.25% | 1.29% |
| MCHPMicrochip Technology Inc. | 1.17% | 0.20% | 0.97% |
| NXPINxp Semiconductors N.V. Common Stock | 1.07% | 0.29% | 0.78% |
| SWKSSkyworks Solutions Inccommon Stock | 1.26% | 0.04% | 1.22% |
| VZVerizon Communications Inc Com Usd1 | 0.51% | 0.74% | 0.23% |
You are not choosing between two funds in isolation.
Whichever of NXTG 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, NXTG or VYM?
NXTG has an expense ratio of 0.70% while VYM charges 0.04%. VYM is the cheaper option, by $66 a year on a $10,000 investment.
Which performed better, NXTG or VYM?
Over the past year NXTG returned +57.87% vs +20.84% for VYM, so NXTG leads on 1-year performance. Over the longest common window we track (16 years), NXTG annualized +12.05% vs +9.97% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, NXTG or VYM?
NXTG has been the more volatile fund at 17.3% annualized versus 12.9% for VYM. Worst drawdown: NXTG -33.6% vs VYM -35.7%.
Should I hold both NXTG and VYM?
NXTG and VYM have a monthly-return correlation of 0.69, 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 NXTG and VYM?
14.4% of VYM's money is in holdings NXTG also owns. 14.4% of VYM's is in holdings NXTG also owns. They hold 12 positions in common, counted across the 99 positions we hold weights for in NXTG and 602 in VYM.
Which pays a higher dividend, NXTG or VYM?
NXTG yields 1.27% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.
Is VYM better than NXTG?
VYM has a lower expense ratio. NXTG led over 1Y, 3Y, 5Y and the full window. NXTG is less concentrated, with 15.5% of the fund in its ten largest positions against 25.9%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.