RDVY vs VYM
First Trust Rising Dividend Achievers ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. RDVY delivered stronger 1-year returns. VYM offers more diversification with 616 holdings.
Side-by-Side Comparison
| Metric | RDVY | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.47% | 0.04% | |
| AUM | $25.9B | $81.6B | |
| Dividend Yield | 0.84% | 2.24% | |
| Holdings | 72 | 616 | |
| YTD Return | +17.50% | +14.84% | |
| 1Y Return | +25.72% | +20.88% | |
| 3Y Return (annualized) | +21.46% | +18.34% | |
| 5Y Return (annualized) | +12.47% | +12.04% | |
| Volatility (annualized) | 17.8% | 14.6% | |
| Max Drawdown | -40.6% | -58.8% | |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jan 6, 2014 | Nov 10, 2006 |
RDVY vs VYM Performance
First Trust Rising Dividend Achievers ETF (RDVY) 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 RDVY returned +25.72% while VYM returned +20.88%. Year to date, RDVY is up 17.50% versus a gain of 14.84% for VYM.
Over three years, RDVY compounded at +21.46% per year against +18.34% for VYM; over five years the annualized figures are +12.47% and +12.04% respectively. Across the full 13-year window we track, RDVY has the edge at +12.57% annualized vs +7.01%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
RDVY has been the more volatile fund, with annualized monthly volatility of 17.8% 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 -40.6% for RDVY 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 0.92. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
RDVY charges 0.47% per year while VYM charges 0.04%. On a $10,000 position that is $47 vs $4 annually, a gap of $43 per year that compounds over a long holding period. On income, RDVY currently yields 0.84% against 2.24% for VYM.
Holdings Overlap
RDVY and VYM share 37 holdings out of 637 unique holdings combined, representing a 12.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, RDVY or VYM?
RDVY has an expense ratio of 0.47% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $43 per year of difference.
Which performed better, RDVY or VYM?
Over the past year RDVY returned +25.72% vs +20.88% for VYM, so RDVY leads on 1-year performance. Over the longest common window we track (13 years), RDVY annualized +12.57% vs +7.01% for VYM. Past performance does not guarantee future results.
Which is riskier, RDVY or VYM?
RDVY has been the more volatile fund at 17.8% annualized versus 14.6% for VYM. Worst drawdown: RDVY -40.6% vs VYM -58.8%.
Should I hold both RDVY and VYM?
RDVY and VYM have a monthly-return correlation of 0.92, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between RDVY and VYM?
RDVY and VYM share 37 common holdings with a 12.3% weight overlap. Combined, they hold 637 unique securities.
Which pays a higher dividend, RDVY or VYM?
RDVY yields 0.84% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.
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