TDVI vs VYM
FT Vest Technology Dividend Target Income ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 616 holdings.
Side-by-Side Comparison
| Metric | TDVI | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.75% | 0.04% | |
| AUM | $569M | $81.6B | |
| Dividend Yield | 7.62% | 2.24% | |
| Holdings | 97 | 616 | |
| YTD Return | +17.72% | +16.42% | |
| 1Y Return | +23.93% | +24.22% | |
| 3Y Return (annualized) | +17.67% | +19.03% | |
| 5Y Return (annualized) | - | +12.21% | |
| Volatility (annualized) | 23.2% | 14.6% | |
| Max Drawdown | -25.9% | -58.8% | |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Aug 9, 2023 | Nov 10, 2006 |
TDVI vs VYM Performance
FT Vest Technology Dividend Target Income ETF (TDVI) 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 TDVI returned +23.93% while VYM returned +24.22%. Year to date, TDVI is up 17.72% versus a gain of 16.42% for VYM.
Over three years, TDVI compounded at +17.67% per year against +19.03% for VYM. Across the full 3-year window we track, TDVI has the edge at +17.34% annualized vs +7.10%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
TDVI has been the more volatile fund, with annualized monthly volatility of 23.2% 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 -25.9% for TDVI 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 0.58. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
TDVI charges 0.75% per year while VYM charges 0.04%. On a $10,000 position that is $75 vs $4 annually, a gap of $71 per year that compounds over a long holding period. On income, TDVI currently yields 7.62% against 2.24% for VYM.
Holdings Overlap
TDVI and VYM share 37 holdings out of 659 unique holdings combined, representing a 18.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, TDVI or VYM?
TDVI has an expense ratio of 0.75% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $71 per year of difference.
Which performed better, TDVI or VYM?
Over the past year TDVI returned +23.93% vs +24.22% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (3 years), TDVI annualized +17.34% vs +7.10% for VYM. Past performance does not guarantee future results.
Which is riskier, TDVI or VYM?
TDVI has been the more volatile fund at 23.2% annualized versus 14.6% for VYM. Worst drawdown: TDVI -25.9% vs VYM -58.8%.
Should I hold both TDVI and VYM?
TDVI and VYM have a monthly-return correlation of 0.58, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between TDVI and VYM?
TDVI and VYM share 37 common holdings with a 18.0% weight overlap. Combined, they hold 659 unique securities.
Which pays a higher dividend, TDVI or VYM?
TDVI yields 7.62% while VYM yields 2.24%, so TDVI currently pays the higher dividend yield.
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