CAAA vs VYM
CAAA vs VYM
First Trust AAA CMBS 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 558 holdings.
Side-by-Side Comparison
| Metric | CAAA | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.30% | 0.04% | |
| AUM | $35M | $79.0B | |
| Dividend Yield | 5.29% | 2.86% | |
| Holdings | 105 | 568 | |
| YTD Return | +1.11% | +15.57% | |
| 1Y Return | +3.13% | +25.99% | |
| 3Y Return (annualized) | - | +18.02% | |
| 5Y Return (annualized) | - | +12.71% | |
| Volatility (annualized) | 3.0% | 14.6% | |
| Max Drawdown | -2.2% | -58.8% | |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Feb 27, 2024 | Nov 10, 2006 |
CAAA vs VYM Performance
First Trust AAA CMBS ETF (CAAA) 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 CAAA returned +3.13% while VYM returned +25.99%. Year to date, CAAA is up 1.11% versus a gain of 15.57% for VYM.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 3.0% for CAAA. 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 -2.2% for CAAA 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 0.54. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
CAAA charges 0.30% per year while VYM charges 0.04%. On a $10,000 position that is $30 vs $4 annually, a gap of $26 per year that compounds over a long holding period. On income, CAAA currently yields 5.29% against 2.86% for VYM.
Holdings Overlap
CAAA and VYM share 0 holdings out of 606 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, CAAA or VYM?
CAAA has an expense ratio of 0.30% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $26 per year of difference.
Which performed better, CAAA or VYM?
Over the past year CAAA returned +3.13% vs +25.99% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (2 years), CAAA annualized +5.45% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, CAAA or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 3.0% for CAAA. Worst drawdown: CAAA -2.2% vs VYM -58.8%.
Should I hold both CAAA and VYM?
CAAA and VYM have a monthly-return correlation of 0.54, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between CAAA and VYM?
CAAA and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 606 unique securities.
Which pays a higher dividend, CAAA or VYM?
CAAA yields 5.29% while VYM yields 2.86%, so CAAA currently pays the higher dividend yield.
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