QABA vs VYM
First Trust NASDAQ ABA Community Bank Index Fund vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. QABA delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | QABA | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.60% | 0.04% | |
| AUM | $92M | $79.0B | |
| Dividend Yield | 2.34% | 2.86% | |
| Holdings | 147 | 568 | |
| YTD Return | +22.71% | +16.10% | |
| 1Y Return | +31.45% | +25.99% | |
| 3Y Return (annualized) | +18.03% | +18.29% | |
| 5Y Return (annualized) | +6.96% | +12.35% | |
| Volatility (annualized) | 22.5% | 14.6% | |
| Max Drawdown | -51.0% | -58.8% | |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jun 29, 2009 | Nov 10, 2006 |
QABA vs VYM Performance
First Trust NASDAQ ABA Community Bank Index Fund (QABA) 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 QABA returned +31.45% while VYM returned +25.99%. Year to date, QABA is up 22.71% versus a gain of 16.10% for VYM.
Over three years, QABA compounded at +18.03% per year against +18.29% for VYM; over five years the annualized figures are +6.96% and +12.35% respectively. Across the full 17-year window we track, QABA has the edge at +8.29% annualized vs +7.08%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QABA has been the more volatile fund, with annualized monthly volatility of 22.5% 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 -51.0% for QABA 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 0.71. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
QABA 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, QABA currently yields 2.34% against 2.86% for VYM.
Holdings Overlap
QABA and VYM share 33 holdings out of 685 unique holdings combined, representing a 0.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, QABA or VYM?
QABA 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, QABA or VYM?
Over the past year QABA returned +31.45% vs +25.99% for VYM, so QABA leads on 1-year performance. Over the longest common window we track (17 years), QABA annualized +8.29% vs +7.08% for VYM. Past performance does not guarantee future results.
Which is riskier, QABA or VYM?
QABA has been the more volatile fund at 22.5% annualized versus 14.6% for VYM. Worst drawdown: QABA -51.0% vs VYM -58.8%.
Should I hold both QABA and VYM?
QABA and VYM have a monthly-return correlation of 0.71, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QABA and VYM?
QABA and VYM share 33 common holdings with a 0.4% weight overlap. Combined, they hold 685 unique securities.
Which pays a higher dividend, QABA or VYM?
QABA yields 2.34% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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