FTSD vs VYM
FTSD vs VYM
Franklin Short Duration US Government 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 | FTSD | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.25% | 0.04% | |
| AUM | $302M | $79.0B | |
| Dividend Yield | 4.54% | 2.86% | |
| Holdings | 342 | 568 | |
| YTD Return | +1.10% | +15.45% | |
| 1Y Return | +3.55% | +26.05% | |
| 3Y Return (annualized) | +4.86% | +17.96% | |
| 5Y Return (annualized) | +2.55% | +12.54% | |
| Volatility (annualized) | 1.3% | 14.6% | |
| Max Drawdown | -9.8% | -58.8% | |
| Fund Family | Franklin Templeton Investments (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Nov 4, 2013 | Nov 10, 2006 |
FTSD vs VYM Performance
Franklin Short Duration US Government ETF (FTSD) is a ETF from Franklin Templeton Investments (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year FTSD returned +3.55% while VYM returned +26.05%. Year to date, FTSD is up 1.10% versus a gain of 15.45% for VYM.
Over three years, FTSD compounded at +4.86% per year against +17.96% for VYM; over five years the annualized figures are +2.55% and +12.54% respectively. Across the full 13-year window we track, VYM has the edge at +7.06% annualized vs +0.60%. 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 1.3% for FTSD. 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 -9.8% for FTSD 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 0.18. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FTSD charges 0.25% per year while VYM charges 0.04%. On a $10,000 position that is $25 vs $4 annually, a gap of $21 per year that compounds over a long holding period. On income, FTSD currently yields 4.54% against 2.86% for VYM.
Holdings Overlap
FTSD and VYM share 0 holdings out of 597 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, FTSD or VYM?
FTSD has an expense ratio of 0.25% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $21 per year of difference.
Which performed better, FTSD or VYM?
Over the past year FTSD returned +3.55% vs +26.05% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (13 years), FTSD annualized +0.60% vs +7.06% for VYM. Past performance does not guarantee future results.
Which is riskier, FTSD or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 1.3% for FTSD. Worst drawdown: FTSD -9.8% vs VYM -58.8%.
Should I hold both FTSD and VYM?
FTSD and VYM have a monthly-return correlation of 0.18, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FTSD and VYM?
FTSD and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 597 unique securities.
Which pays a higher dividend, FTSD or VYM?
FTSD yields 4.54% while VYM yields 2.86%, so FTSD currently pays the higher dividend yield.
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