FTHI vs VYM
FTHI vs VYM
First Trust BuyWrite Income 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 | FTHI | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.76% | 0.04% | |
| AUM | $2.4B | $79.0B | |
| Dividend Yield | 8.76% | 2.86% | |
| Holdings | 208 | 568 | |
| YTD Return | +6.53% | +15.57% | |
| 1Y Return | +12.81% | +25.99% | |
| 3Y Return (annualized) | +13.76% | +18.02% | |
| 5Y Return (annualized) | +11.36% | +12.71% | |
| Volatility (annualized) | 11.5% | 14.6% | |
| Max Drawdown | -35.5% | -58.8% | |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) | |
| Category | Alternative | Equity | |
| Inception | Jan 6, 2014 | Nov 10, 2006 |
FTHI vs VYM Performance
First Trust BuyWrite Income ETF (FTHI) 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 FTHI returned +12.81% while VYM returned +25.99%. Year to date, FTHI is up 6.53% versus a gain of 15.57% for VYM.
Over three years, FTHI compounded at +13.76% per year against +18.02% for VYM; over five years the annualized figures are +11.36% and +12.71% respectively. Across the full 13-year window we track, VYM has the edge at +7.07% annualized vs +5.03%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 11.5% 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 -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 0.86. 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 8.76% against 2.86% for VYM.
Holdings Overlap
FTHI and VYM share 59 holdings out of 667 unique holdings combined, representing a 24.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in FTHI | Weight in VYM | Difference |
|---|---|---|---|
| AVGO | 2.23% | 6.47% | 4.24% |
| JPM | 2.77% | 3.36% | 0.59% |
| XOM | 1.13% | 2.83% | 1.70% |
| BAC | Pro | Pro | Pro |
| JNJ | Pro | Pro | Pro |
| WMT | Pro | Pro | Pro |
| ABBV | Pro | Pro | Pro |
| CSCO | Pro | Pro | Pro |
| CAT | Pro | Pro | Pro |
| DELL | Pro | Pro | Pro |
See all 10 holdings FTHI shares with VYM Exact weights in each fund and the difference, for every overlapping position. Get FundXLS Pro: $29/moFirst 500 subscribers, then $49/mo. Cancel anytime. | |||
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. On a $10,000 investment, that is $72 per year of difference.
Which performed better, FTHI or VYM?
Over the past year FTHI returned +12.81% vs +25.99% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (13 years), FTHI annualized +5.03% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, FTHI or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 11.5% for FTHI. Worst drawdown: FTHI -35.5% vs VYM -58.8%.
Should I hold both FTHI and VYM?
FTHI and VYM have a monthly-return correlation of 0.86, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FTHI and VYM?
FTHI and VYM share 59 common holdings with a 24.2% weight overlap. Combined, they hold 667 unique securities.
Which pays a higher dividend, FTHI or VYM?
FTHI yields 8.76% while VYM yields 2.86%, so FTHI currently pays the higher dividend yield.
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