SQMX 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

MetricSQMXVYMWinner
Expense Ratio0.85%0.04%
AUM$54M$79.0B
Dividend Yield0.00%2.86%
Holdings5568
YTD Return+3.91%+16.16%
1Y Return+7.74%+26.05%
3Y Return (annualized)-+18.43%
5Y Return (annualized)-+12.21%
Volatility (annualized)2.9%14.6%
Max Drawdown-7.4%-58.8%
Fund FamilyFirst Trust Portfolios (US)Vanguard (US)
CategoryAlternativeEquity
InceptionDec 20, 2024Nov 10, 2006

SQMX vs VYM Performance

FT Vest US Equity Quarterly Max Buffer ETF (SQMX) 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 SQMX returned +7.74% while VYM returned +26.05%. Year to date, SQMX is up 3.91% versus a gain of 16.16% for VYM.

Risk: Volatility and Drawdowns

VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 2.9% for SQMX. 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 -7.4% for SQMX 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 0.71. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

SQMX charges 0.85% per year while VYM charges 0.04%. On a $10,000 position that is $85 vs $4 annually, a gap of $81 per year that compounds over a long holding period. On income, SQMX currently yields 0.00% against 2.86% for VYM.

Holdings Overlap

0.0%overlap

SQMX and VYM share 0 holdings out of 559 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, SQMX or VYM?

SQMX has an expense ratio of 0.85% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $81 per year of difference.

Which performed better, SQMX or VYM?

Over the past year SQMX returned +7.74% vs +26.05% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (2 years), SQMX annualized +7.53% vs +7.09% for VYM. Past performance does not guarantee future results.

Which is riskier, SQMX or VYM?

VYM has been the more volatile fund at 14.6% annualized versus 2.9% for SQMX. Worst drawdown: SQMX -7.4% vs VYM -58.8%.

Should I hold both SQMX and VYM?

SQMX and VYM have a monthly-return correlation of 0.71, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between SQMX and VYM?

SQMX and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 559 unique securities.

Which pays a higher dividend, SQMX or VYM?

SQMX yields 0.00% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.

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