TDIV vs VYM
First Trust NASDAQ Technology Dividend Index Fund vs Vanguard High Dividend Yield ETF
Which is better, TDIV or VYM?
Each has led over a different period.
VYM has a lower expense ratio. TDIV led over 3Y, 5Y and the full window, VYM over 1Y. VYM is less concentrated, with 25.8% of the fund in its ten largest positions against 56.6%.
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 | TDIV | VYM |
|---|---|---|
| Expense Ratio | 0.50% | 0.04%Best |
| AUM | $4.5B | $78.9B |
| Dividend Yield | 1.40% | 2.37% |
| Holdings | 190 | 608 |
| YTD Return | +16.70%Best | +11.83% |
| 1Y Return | +15.31% | +15.96%Best |
| 3Y Return (annualized) | +27.53%Best | +18.60% |
| 5Y Return (annualized) | +16.39%Best | +11.51% |
| Volatility (annualized) | 16.9% | 13.2%Best |
| Max Drawdown | -32.0%Best | -35.7% |
| $10,000 over 5 years | $21,359Best | $17,241 |
| Top 10 Weight | 56.6% | 25.8%Best |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Value | Large Cap Value |
| Inception | Aug 13, 2012 | Nov 10, 2006 |
Volatility and max drawdown are measured over the window both funds cover: Aug 14, 2012 to Oct 14, 2026 (14.2 years).
TDIV 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 14.2 years both funds cover.
TDIV vs VYM Performance
First Trust NASDAQ Technology Dividend Index Fund (TDIV) 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 TDIV returned +15.31% while VYM returned +15.96%. Year to date, TDIV is up 16.70% versus a gain of 11.83% for VYM.
Over three years, TDIV compounded at +27.53% per year against +18.60% for VYM; over five years the annualized figures are +16.39% and +11.51% respectively. Across the full 14-year window we track, TDIV has the edge at +13.81% annualized vs +9.82%.
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 13.2% 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 -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 0.78. 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 1.40% against 2.37% for VYM.
Holdings Overlap
63.7% of TDIV's money is in holdings VYM also owns. 17.7% of VYM's money is in holdings TDIV also owns.
The two portfolios partly overlap.
38 positions in common, counted across the 87 positions we hold weights for in TDIV and 602 in VYM, against full books of 190 and 608.
What only one of them owns
Our book lists 537 positions for VYM that do not appear in our book for TDIV (80.2% of the fund), and 32 for TDIV that do not appear in VYM (22.2%).
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 TDIV | Weight in VYM | Difference |
|---|---|---|---|
| AVGOBroadcom Inc | 7.64% | 6.94% | 0.70% |
| TXNTexas Instruments, Inc | 8.97% | 0.96% | 8.01% |
| ORCLOracle Corp. | 7.60% | 1.03% | 6.57% |
| IBMInternational Business Machines Corp. | 7.58% | 0.89% | 6.69% |
| QCOMQualcomm, Inc. | 4.32% | 0.72% | 3.60% |
| ADIAnalog Devices, Inc. | 3.51% | 0.71% | 2.80% |
| CSCOCisco Systems Inc. - Ordinary Shares | 2.02% | 1.76% | 0.26% |
| VZVerizon Wireless | 1.83% | 0.84% | 0.99% |
| TAt&t Inc Com | 1.87% | 0.71% | 1.16% |
| TMUST-Mobile Usa Inc Esrw Usd Npv Ref Sm#585558 | 1.81% | 0.35% | 1.46% |
63.7% of TDIV 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, TDIV or VYM?
TDIV has an expense ratio of 0.50% while VYM charges 0.04%. VYM is the cheaper option, by $46 a year on a $10,000 investment.
Which performed better, TDIV or VYM?
Over the past year TDIV returned +15.31% vs +15.96% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (14 years), TDIV annualized +13.81% vs +9.82% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, TDIV or VYM?
TDIV has been the more volatile fund at 16.9% annualized versus 13.2% for VYM. Worst drawdown: TDIV -32.0% vs VYM -35.7%.
Should I hold both TDIV and VYM?
TDIV and VYM have a monthly-return correlation of 0.78, 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 TDIV and VYM?
63.7% of TDIV's money is in holdings VYM also owns. 17.7% of VYM's is in holdings TDIV also owns. They hold 38 positions in common, counted across the 87 positions we hold weights for in TDIV and 602 in VYM.
Which pays a higher dividend, TDIV or VYM?
TDIV yields 1.40% while VYM yields 2.37%, so VYM currently pays the higher dividend yield.
Is VYM better than TDIV?
VYM has a lower expense ratio. TDIV led over 3Y, 5Y and the full window, VYM over 1Y. VYM is less concentrated, with 25.8% of the fund in its ten largest positions against 56.6%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.