RFDI vs VYM

Quick Verdict

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

Lower Fees: VYMHigher Returns: RFDIMore Diversified: VYM

Side-by-Side Comparison

MetricRFDIVYMWinner
Expense Ratio0.83%0.04%
AUM$161M$79.0B
Dividend Yield3.25%2.86%
Holdings159568
YTD Return+14.91%+16.10%
1Y Return+28.10%+25.99%
3Y Return (annualized)+21.35%+18.29%
5Y Return (annualized)+8.72%+12.35%
Volatility (annualized)15.4%14.6%
Max Drawdown-42.4%-58.8%
Fund FamilyFirst Trust Portfolios (US)Vanguard (US)
CategoryEquityEquity
InceptionApr 14, 2016Nov 10, 2006

RFDI vs VYM Performance

First Trust RiverFront Dynamic Developed International ETF (RFDI) 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 RFDI returned +28.10% while VYM returned +25.99%. Year to date, RFDI is up 14.91% versus a gain of 16.10% for VYM.

Over three years, RFDI compounded at +21.35% per year against +18.29% for VYM; over five years the annualized figures are +8.72% and +12.35% respectively. Across the full 10-year window we track, RFDI has the edge at +8.06% annualized vs +7.08%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

RFDI has been the more volatile fund, with annualized monthly volatility of 15.4% 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 -42.4% for RFDI 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 0.81. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

RFDI charges 0.83% per year while VYM charges 0.04%. On a $10,000 position that is $83 vs $4 annually, a gap of $79 per year that compounds over a long holding period. On income, RFDI currently yields 3.25% against 2.86% for VYM.

Holdings Overlap

0.0%overlap

RFDI and VYM share 0 holdings out of 705 unique holdings combined, representing a 0.0% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Frequently Asked Questions

Which is cheaper, RFDI or VYM?

RFDI has an expense ratio of 0.83% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $79 per year of difference.

Which performed better, RFDI or VYM?

Over the past year RFDI returned +28.10% vs +25.99% for VYM, so RFDI leads on 1-year performance. Over the longest common window we track (10 years), RFDI annualized +8.06% vs +7.08% for VYM. Past performance does not guarantee future results.

Which is riskier, RFDI or VYM?

RFDI has been the more volatile fund at 15.4% annualized versus 14.6% for VYM. Worst drawdown: RFDI -42.4% vs VYM -58.8%.

Should I hold both RFDI and VYM?

RFDI and VYM have a monthly-return correlation of 0.81, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between RFDI and VYM?

RFDI and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 705 unique securities.

Which pays a higher dividend, RFDI or VYM?

RFDI yields 3.25% while VYM yields 2.86%, so RFDI currently pays the higher dividend yield.

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