FTHY vs VYM
First Trust High Yield Opportunities 2027 Term Fund vs Vanguard High Dividend Yield ETF
Which is better, FTHY or VYM?
VYM has been ahead.
VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window.
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 | FTHY | VYM |
|---|---|---|
| Expense Ratio | 3.59% | 0.04%Best |
| AUM | $648M | $78.9B |
| Dividend Yield | 11.20% | 2.37% |
| Holdings | 301 | 608 |
| YTD Return | -1.76% | +11.83%Best |
| 1Y Return | -0.33% | +15.96%Best |
| 3Y Return (annualized) | +10.36% | +18.60%Best |
| 5Y Return (annualized) | +0.73% | +11.51%Best |
| Volatility (annualized) | 11.8%Best | 13.8% |
| Max Drawdown | -31.2% | -15.8%Best |
| $10,000 over 5 years | $10,370 | $17,241Best |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) |
| Category | Fixed Income | Equity |
| Style | - | Large Cap Value |
| Inception | Jun 25, 2020 | Nov 10, 2006 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Jun 26, 2020 to Oct 14, 2026 (6.3 years).
FTHY 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 6.3 years both funds cover.
FTHY vs VYM Performance
First Trust High Yield Opportunities 2027 Term Fund (FTHY) 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 FTHY returned -0.33% while VYM returned +15.96%. Year to date, FTHY is down 1.76% versus a gain of 11.83% for VYM.
Over three years, FTHY compounded at +10.36% per year against +18.60% for VYM; over five years the annualized figures are +0.73% and +11.51% respectively. Across the full 6-year window we track, VYM has the edge at +15.27% annualized vs +1.99%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 13.8% compared with 11.8% for FTHY. 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 -31.2% for FTHY and -15.8% 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 0.68. They move together some of the time, and apart the rest.
Fees and Cost Over Time
FTHY charges 3.59% per year while VYM charges 0.04%. On a $10,000 position that is $359 vs $4 annually, a gap of $355 per year that compounds over a long holding period. On income, FTHY currently yields 11.20% against 2.37% for VYM.
Holdings Overlap
We hold position weights for 183 holdings in FTHY and 602 in VYM, totalling 72.9% and 100.0% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 183 positions we hold weights for in FTHY and 602 in VYM, against full books of 301 and 608.
You are not choosing between two funds in isolation.
Whichever of FTHY and VYM you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, FTHY or VYM?
FTHY has an expense ratio of 3.59% while VYM charges 0.04%. VYM is the cheaper option, by $355 a year on a $10,000 investment.
Which performed better, FTHY or VYM?
Over the past year FTHY returned -0.33% vs +15.96% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (6 years), FTHY annualized +1.99% vs +15.27% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FTHY or VYM?
VYM has been the more volatile fund at 13.8% annualized versus 11.8% for FTHY. Worst drawdown: FTHY -31.2% vs VYM -15.8%.
Should I hold both FTHY and VYM?
FTHY and VYM have a monthly-return correlation of 0.68, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, FTHY or VYM?
FTHY yields 11.20% while VYM yields 2.37%, so FTHY currently pays the higher dividend yield.
Is VYM better than FTHY?
VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.