NXTG vs VYM
First Trust Indxx NextG ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. NXTG delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | NXTG | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.70% | 0.04% | |
| AUM | $539M | $79.0B | |
| Dividend Yield | 1.15% | 2.86% | |
| Holdings | 108 | 568 | |
| YTD Return | +42.34% | +16.53% | |
| 1Y Return | +57.02% | +25.03% | |
| 3Y Return (annualized) | +32.81% | +18.54% | |
| 5Y Return (annualized) | +17.01% | +12.25% | |
| Volatility (annualized) | 17.3% | 14.6% | |
| Max Drawdown | -33.6% | -58.8% | |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Feb 17, 2011 | Nov 10, 2006 |
NXTG vs VYM Performance
First Trust Indxx NextG ETF (NXTG) 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 NXTG returned +57.02% while VYM returned +25.03%. Year to date, NXTG is up 42.34% versus a gain of 16.53% for VYM.
Over three years, NXTG compounded at +32.81% per year against +18.54% for VYM; over five years the annualized figures are +17.01% and +12.25% respectively. Across the full 16-year window we track, NXTG has the edge at +12.10% annualized vs +7.10%. 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 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 -33.6% for NXTG 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 0.69. They move independently enough that combining them can meaningfully diversify a portfolio.
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 1.15% against 2.86% for VYM.
Holdings Overlap
NXTG and VYM share 12 holdings out of 645 unique holdings combined, representing a 6.8% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
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. On a $10,000 investment, that is $66 per year of difference.
Which performed better, NXTG or VYM?
Over the past year NXTG returned +57.02% vs +25.03% for VYM, so NXTG leads on 1-year performance. Over the longest common window we track (16 years), NXTG annualized +12.10% vs +7.10% for VYM. Past performance does not guarantee future results.
Which is riskier, NXTG or VYM?
NXTG has been the more volatile fund at 17.3% annualized versus 14.6% for VYM. Worst drawdown: NXTG -33.6% vs VYM -58.8%.
Should I hold both NXTG and VYM?
NXTG and VYM have a monthly-return correlation of 0.69, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between NXTG and VYM?
NXTG and VYM share 12 common holdings with a 6.8% weight overlap. Combined, they hold 645 unique securities.
Which pays a higher dividend, NXTG or VYM?
NXTG yields 1.15% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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