HSMV vs VYM
First Trust Horizon Managed Volatility Small/Mid ETF vs Vanguard High Dividend Yield ETF
Which is better, HSMV or VYM?
Small Cap Blend against Large Cap Value.
VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.90. HSMV is less concentrated, with 16.1% of the fund in its ten largest positions against 25.8%.
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 | HSMV | VYM |
|---|---|---|
| Expense Ratio | 0.80% | 0.04%Best |
| AUM | $5M | $78.9B |
| Dividend Yield | 4.62% | 2.37% |
| Holdings | 302 | 608 |
| YTD Return | +3.28% | +11.83%Best |
| 1Y Return | +4.21% | +15.96%Best |
| 3Y Return (annualized) | +9.14% | +18.60%Best |
| 5Y Return (annualized) | +3.51% | +11.51%Best |
| Volatility (annualized) | 14.7% | 13.7%Best |
| Max Drawdown | -19.2% | -15.8%Best |
| $10,000 over 5 years | $11,883 | $17,241Best |
| Top 10 Weight | 16.1%Best | 25.8% |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Small Cap Blend | Large Cap Value |
| Inception | Apr 6, 2020 | Nov 10, 2006 |
Volatility and max drawdown are measured over the window both funds cover: Apr 7, 2020 to Oct 14, 2026 (6.5 years).
HSMV 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 6.5 years both funds cover.
HSMV vs VYM Performance
First Trust Horizon Managed Volatility Small/Mid ETF (HSMV) 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 HSMV returned +4.21% while VYM returned +15.96%. Year to date, HSMV is up 3.28% versus a gain of 11.83% for VYM.
Over three years, HSMV compounded at +9.14% per year against +18.60% for VYM; over five years the annualized figures are +3.51% and +11.51% respectively. Across the full 7-year window we track, VYM has the edge at +15.58% annualized vs +10.07%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
HSMV has been the more volatile fund, with annualized monthly volatility of 14.7% compared with 13.7% 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 -19.2% for HSMV 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 0.90. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
HSMV charges 0.80% per year while VYM charges 0.04%. On a $10,000 position that is $80 vs $4 annually, a gap of $76 per year that compounds over a long holding period. On income, HSMV currently yields 4.62% against 2.37% for VYM.
Holdings Overlap
55.1% of HSMV's money is in holdings VYM also owns. 1.7% of VYM's money is in holdings HSMV also owns.
The two portfolios partly overlap.
76 positions in common, counted across the 150 positions we hold weights for in HSMV and 602 in VYM, against full books of 302 and 608.
What only one of them owns
Our book lists 499 positions for VYM that do not appear in our book for HSMV (96.1% of the fund), and 73 for HSMV that do not appear in VYM (44.3%).
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 HSMV | Weight in VYM | Difference |
|---|---|---|---|
| INGRIngredion Inc | 2.26% | 0.03% | 2.23% |
| DLBDOLBY LABORATORIES INC-CL A | 2.05% | 0.01% | 2.04% |
| AMAntero Midstream Corporationam | 1.62% | 0.03% | 1.59% |
| DTMDT Midstream Inc | 1.41% | 0.05% | 1.36% |
| IOSPInnospec | 1.35% | 0.01% | 1.34% |
| OGEOge Energy Corp. | 1.31% | 0.04% | 1.27% |
| NJRNew Jersey Res | 1.22% | 0.02% | 1.20% |
| MSMMsc Industrial Direct Co Inc | 1.21% | 0.02% | 1.19% |
| GATXGATX Corporation | 1.20% | 0.02% | 1.18% |
| CHCOCity Holding Co Common Stock Usd2.5 | 1.19% | 0.01% | 1.18% |
55.1% of HSMV is already inside VYM.
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, HSMV or VYM?
HSMV has an expense ratio of 0.80% while VYM charges 0.04%. VYM is the cheaper option, by $76 a year on a $10,000 investment.
Which performed better, HSMV or VYM?
Over the past year HSMV returned +4.21% vs +15.96% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (7 years), HSMV annualized +10.07% vs +15.58% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, HSMV or VYM?
HSMV has been the more volatile fund at 14.7% annualized versus 13.7% for VYM. Worst drawdown: HSMV -19.2% vs VYM -15.8%.
Should I hold both HSMV and VYM?
HSMV and VYM have a monthly-return correlation of 0.90, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
What is the holdings overlap between HSMV and VYM?
55.1% of HSMV's money is in holdings VYM also owns. 1.7% of VYM's is in holdings HSMV also owns. They hold 76 positions in common, counted across the 150 positions we hold weights for in HSMV and 602 in VYM.
Which pays a higher dividend, HSMV or VYM?
HSMV yields 4.62% while VYM yields 2.37%, so HSMV currently pays the higher dividend yield.
Is VYM better than HSMV?
VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.90. HSMV is less concentrated, with 16.1% of the fund in its ten largest positions against 25.8%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.