TDIV vs VYM
First Trust NASDAQ Technology Dividend Index Fund vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. TDIV delivered stronger 1-year returns. VYM offers more diversification with 613 holdings.
Side-by-Side Comparison
| Metric | TDIV | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.50% | 0.04% | |
| AUM | $4.4B | $81.6B | |
| Dividend Yield | 1.37% | 2.24% | |
| Holdings | 192 | 613 | |
| YTD Return | +18.22% | +14.18% | |
| 1Y Return | +26.86% | +20.67% | |
| 3Y Return (annualized) | +26.14% | +18.47% | |
| 5Y Return (annualized) | +16.27% | +12.01% | |
| Volatility (annualized) | 16.9% | 14.5% | |
| Max Drawdown | -32.0% | -58.8% | |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Aug 13, 2012 | Nov 10, 2006 |
TDIV vs VYM Performance
First Trust NASDAQ Technology Dividend Index Fund (TDIV) 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 TDIV returned +26.86% while VYM returned +20.67%. Year to date, TDIV is up 18.22% versus a gain of 14.18% for VYM.
Over three years, TDIV compounded at +26.14% per year against +18.47% for VYM; over five years the annualized figures are +16.27% and +12.01% respectively. Across the full 14-year window we track, TDIV has the edge at +14.04% annualized vs +6.97%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
TDIV has been the more volatile fund, with annualized monthly volatility of 16.9% compared with 14.5% 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 -32.0% for TDIV 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
TDIV charges 0.50% per year while VYM charges 0.04%. On a $10,000 position that is $50 vs $4 annually, a gap of $46 per year that compounds over a long holding period. On income, TDIV currently yields 1.37% against 2.24% for VYM.
Holdings Overlap
TDIV and VYM share 37 holdings out of 660 unique holdings combined, representing a 18.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, TDIV or VYM?
TDIV has an expense ratio of 0.50% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $46 per year of difference.
Which performed better, TDIV or VYM?
Over the past year TDIV returned +26.86% vs +20.67% for VYM, so TDIV leads on 1-year performance. Over the longest common window we track (14 years), TDIV annualized +14.04% vs +6.97% for VYM. Past performance does not guarantee future results.
Which is riskier, TDIV or VYM?
TDIV has been the more volatile fund at 16.9% annualized versus 14.5% for VYM. Worst drawdown: TDIV -32.0% vs VYM -58.8%.
Should I hold both TDIV and VYM?
TDIV 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 TDIV and VYM?
TDIV and VYM share 37 common holdings with a 18.5% weight overlap. Combined, they hold 660 unique securities.
Which pays a higher dividend, TDIV or VYM?
TDIV yields 1.37% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.
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