RFEU vs VYM

Quick Verdict

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

Lower Fees: VYMHigher Returns: RFEUMore Diversified: VYM

Side-by-Side Comparison

MetricRFEUVYMWinner
Expense Ratio0.83%0.04%
AUM$8M$79.0B
Dividend Yield4.64%2.86%
Holdings91568
YTD Return+1.15%+16.16%
1Y Return+28.40%+26.05%
3Y Return (annualized)+13.10%+18.43%
5Y Return (annualized)+6.58%+12.21%
Volatility (annualized)16.1%14.6%
Max Drawdown-42.9%-58.8%
Fund FamilyFirst Trust Portfolios (US)Vanguard (US)
CategoryEquityEquity
InceptionApr 14, 2016Nov 10, 2006

RFEU vs VYM Performance

First Trust RiverFront Dynamic Europe ETF (RFEU) 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 RFEU returned +28.40% while VYM returned +26.05%. Year to date, RFEU is up 1.15% versus a gain of 16.16% for VYM.

Over three years, RFEU compounded at +13.10% per year against +18.43% for VYM; over five years the annualized figures are +6.58% and +12.21% respectively. Across the full 10-year window we track, RFEU has the edge at +7.60% annualized vs +7.09%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

RFEU has been the more volatile fund, with annualized monthly volatility of 16.1% 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 -42.9% for RFEU 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 0.79. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

RFEU 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, RFEU currently yields 4.64% against 2.86% for VYM.

Holdings Overlap

0.0%overlap

RFEU and VYM share 0 holdings out of 644 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, RFEU or VYM?

RFEU 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, RFEU or VYM?

Over the past year RFEU returned +28.40% vs +26.05% for VYM, so RFEU leads on 1-year performance. Over the longest common window we track (10 years), RFEU annualized +7.60% vs +7.09% for VYM. Past performance does not guarantee future results.

Which is riskier, RFEU or VYM?

RFEU has been the more volatile fund at 16.1% annualized versus 14.6% for VYM. Worst drawdown: RFEU -42.9% vs VYM -58.8%.

Should I hold both RFEU and VYM?

RFEU and VYM have a monthly-return correlation of 0.79, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between RFEU and VYM?

RFEU and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 644 unique securities.

Which pays a higher dividend, RFEU or VYM?

RFEU yields 4.64% while VYM yields 2.86%, so RFEU currently pays the higher dividend yield.

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