RFDA vs VYM

Quick Verdict

VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.

Lower Fees: VYMHigher Returns: VYMMore Diversified: VYM

Side-by-Side Comparison

MetricRFDAVYMWinner
Expense Ratio0.52%0.04%
AUM$89M$79.0B
Dividend Yield1.79%2.86%
Holdings79568
YTD Return+16.12%+15.80%
1Y Return+25.69%+26.12%
3Y Return (annualized)+19.05%+18.25%
5Y Return (annualized)+13.07%+12.51%
Volatility (annualized)15.2%14.6%
Max Drawdown-34.8%-58.8%
Fund FamilyALPS AdvisorsVanguard (US)
CategoryEquityEquity
InceptionJun 6, 2016Nov 10, 2006

RFDA vs VYM Performance

ALPS Dynamic US Dividend Advantage ETF (RFDA) is a ETF from ALPS Advisors and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year RFDA returned +25.69% while VYM returned +26.12%. Year to date, RFDA is up 16.12% versus a gain of 15.80% for VYM.

Over three years, RFDA compounded at +19.05% per year against +18.25% for VYM; over five years the annualized figures are +13.07% and +12.51% respectively. Across the full 10-year window we track, RFDA has the edge at +12.48% annualized vs +7.07%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

RFDA has been the more volatile fund, with annualized monthly volatility of 15.2% 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 -34.8% for RFDA 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

RFDA charges 0.52% per year while VYM charges 0.04%. On a $10,000 position that is $52 vs $4 annually, a gap of $48 per year that compounds over a long holding period. On income, RFDA currently yields 1.79% against 2.86% for VYM.

Holdings Overlap

33.5%overlap

RFDA and VYM share 58 holdings out of 578 unique holdings combined, representing a 33.5% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in RFDAWeight in VYMDifference
JPM:US3.11%3.36%0.25%
JNJ3.20%2.62%0.58%
XOM1.94%2.83%0.89%
UNHProProPro
WMTProProPro
CProProPro
MRKProProPro
CATProProPro
COPProProPro
KOProProPro
See all 10 holdings RFDA shares with VYM
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Frequently Asked Questions

Which is cheaper, RFDA or VYM?

RFDA has an expense ratio of 0.52% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $48 per year of difference.

Which performed better, RFDA or VYM?

Over the past year RFDA returned +25.69% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (10 years), RFDA annualized +12.48% vs +7.07% for VYM. Past performance does not guarantee future results.

Which is riskier, RFDA or VYM?

RFDA has been the more volatile fund at 15.2% annualized versus 14.6% for VYM. Worst drawdown: RFDA -34.8% vs VYM -58.8%.

Should I hold both RFDA and VYM?

RFDA 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 RFDA and VYM?

RFDA and VYM share 58 common holdings with a 33.5% weight overlap. Combined, they hold 578 unique securities.

Which pays a higher dividend, RFDA or VYM?

RFDA yields 1.79% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.

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