RDVI vs VYM
FT Vest Rising Dividend Achievers Target Income 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 613 holdings.
Side-by-Side Comparison
| Metric | RDVI | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.75% | 0.04% | |
| AUM | $3.8B | $81.6B | |
| Dividend Yield | 7.74% | 2.24% | |
| Holdings | 73 | 613 | |
| YTD Return | +10.88% | +14.18% | |
| 1Y Return | +18.41% | +20.67% | |
| 3Y Return (annualized) | +17.59% | +18.47% | |
| 5Y Return (annualized) | - | +12.01% | |
| Volatility (annualized) | 14.9% | 14.5% | |
| Max Drawdown | -18.4% | -58.8% | |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Oct 19, 2022 | Nov 10, 2006 |
RDVI vs VYM Performance
FT Vest Rising Dividend Achievers Target Income ETF (RDVI) 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 RDVI returned +18.41% while VYM returned +20.67%. Year to date, RDVI is up 10.88% versus a gain of 14.18% for VYM.
Over three years, RDVI compounded at +17.59% per year against +18.47% for VYM. Across the full 4-year window we track, RDVI has the edge at +18.96% annualized vs +6.97%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
RDVI has been the more volatile fund, with annualized monthly volatility of 14.9% compared with 14.5% 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 -18.4% for RDVI 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 0.88. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
RDVI charges 0.75% per year while VYM charges 0.04%. On a $10,000 position that is $75 vs $4 annually, a gap of $71 per year that compounds over a long holding period. On income, RDVI currently yields 7.74% against 2.24% for VYM.
Holdings Overlap
RDVI and VYM share 37 holdings out of 637 unique holdings combined, representing a 12.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, RDVI or VYM?
RDVI has an expense ratio of 0.75% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $71 per year of difference.
Which performed better, RDVI or VYM?
Over the past year RDVI returned +18.41% vs +20.67% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (4 years), RDVI annualized +18.96% vs +6.97% for VYM. Past performance does not guarantee future results.
Which is riskier, RDVI or VYM?
RDVI has been the more volatile fund at 14.9% annualized versus 14.5% for VYM. Worst drawdown: RDVI -18.4% vs VYM -58.8%.
Should I hold both RDVI and VYM?
RDVI and VYM have a monthly-return correlation of 0.88, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between RDVI and VYM?
RDVI and VYM share 37 common holdings with a 12.4% weight overlap. Combined, they hold 637 unique securities.
Which pays a higher dividend, RDVI or VYM?
RDVI yields 7.74% while VYM yields 2.24%, so RDVI currently pays the higher dividend yield.
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