FTHI vs VYM
First Trust BuyWrite Income ETF vs Vanguard High Dividend Yield ETF
Which is better, FTHI or VYM?
Long-Short Strategy against Large Cap Value.
VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window. VYM is less concentrated, with 25.8% of the fund in its ten largest positions against 34.6%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | FTHI | VYM |
|---|---|---|
| Expense Ratio | 0.76% | 0.04%Best |
| AUM | $2.6B | $78.9B |
| Dividend Yield | 8.97% | 2.37% |
| Holdings | 352 | 608 |
| YTD Return | +7.02% | +11.83%Best |
| 1Y Return | +9.13% | +15.96%Best |
| 3Y Return (annualized) | +14.25% | +18.60%Best |
| 5Y Return (annualized) | +10.46% | +11.51%Best |
| Volatility (annualized) | 11.4%Best | 13.5% |
| Max Drawdown | -35.5%Best | -35.7% |
| $10,000 over 5 years | $16,445 | $17,241Best |
| Top 10 Weight | 34.6% | 25.8%Best |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) |
| Category | Alternative | Equity |
| Style | Long-Short Strategy | Large Cap Value |
| Inception | Jan 6, 2014 | Nov 10, 2006 |
Volatility and max drawdown are measured over the window both funds cover: Jan 7, 2014 to Oct 14, 2026 (12.8 years).
FTHI vs VYM growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 12.8 years both funds cover.
FTHI vs VYM Performance
First Trust BuyWrite Income ETF (FTHI) is an ETF from First Trust Portfolios (US) and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year FTHI returned +9.13% while VYM returned +15.96%. Year to date, FTHI is up 7.02% versus a gain of 11.83% for VYM.
Over three years, FTHI compounded at +14.25% per year against +18.60% for VYM; over five years the annualized figures are +10.46% and +11.51% respectively. Across the full 13-year window we track, VYM has the edge at +9.07% annualized vs +4.99%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 13.5% compared with 11.4% for FTHI. 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 -35.5% for FTHI and -35.7% for VYM. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.86. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FTHI charges 0.76% per year while VYM charges 0.04%. On a $10,000 position that is $76 vs $4 annually, a gap of $72 per year that compounds over a long holding period. On income, FTHI currently yields 8.97% against 2.37% for VYM.
Holdings Overlap
31.6% of FTHI's money is in holdings VYM also owns. 43.0% of VYM's money is in holdings FTHI also owns.
The two portfolios partly overlap.
57 positions in common, counted across the 185 positions we hold weights for in FTHI and 602 in VYM, against full books of 352 and 608.
What only one of them owns
Our book lists 516 positions for VYM that do not appear in our book for FTHI (54.9% of the fund), and 100 for FTHI that do not appear in VYM (54.9%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in FTHI | Weight in VYM | Difference |
|---|---|---|---|
| AVGOBroadcom Inc | 2.01% | 6.94% | 4.93% |
| JPMJpmorgan Chase & Co | 2.55% | 3.83% | 1.28% |
| XOMExxon Mobil Corp | 1.10% | 2.70% | 1.60% |
| BACBank Of America | 2.08% | 1.65% | 0.43% |
| JNJJohnson & Johnson | 1.06% | 2.58% | 1.52% |
| CSCOCisco Systems Inc. - Ordinary Shares | 1.30% | 1.76% | 0.46% |
| DELLDell Technologies -C | 2.51% | 0.55% | 1.96% |
| ABBVAbbvie Inc | 1.04% | 1.83% | 0.79% |
| AMGNAmgen Inc | 1.44% | 0.86% | 0.58% |
| CVXChevron Corp. | 0.55% | 1.54% | 0.99% |
43.0% of VYM is already inside FTHI.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, FTHI or VYM?
FTHI has an expense ratio of 0.76% while VYM charges 0.04%. VYM is the cheaper option, by $72 a year on a $10,000 investment.
Which performed better, FTHI or VYM?
Over the past year FTHI returned +9.13% vs +15.96% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (13 years), FTHI annualized +4.99% vs +9.07% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FTHI or VYM?
VYM has been the more volatile fund at 13.5% annualized versus 11.4% for FTHI. Worst drawdown: FTHI -35.5% vs VYM -35.7%.
Should I hold both FTHI and VYM?
FTHI and VYM have a monthly-return correlation of 0.86, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between FTHI and VYM?
43.0% of VYM's money is in holdings FTHI also owns. 43.0% of VYM's is in holdings FTHI also owns. They hold 57 positions in common, counted across the 185 positions we hold weights for in FTHI and 602 in VYM.
Which pays a higher dividend, FTHI or VYM?
FTHI yields 8.97% while VYM yields 2.37%, so FTHI currently pays the higher dividend yield.
Is VYM better than FTHI?
VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window. VYM is less concentrated, with 25.8% of the fund in its ten largest positions against 34.6%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.