HYLS vs VYM
HYLS vs VYM
First Trust Tactical High Yield 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 | HYLS | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.69% | 0.04% | |
| AUM | $1.6B | $79.0B | |
| Dividend Yield | 6.71% | 2.86% | |
| Holdings | 315 | 568 | |
| YTD Return | +1.04% | +15.45% | |
| 1Y Return | +3.38% | +26.05% | |
| 3Y Return (annualized) | +7.33% | +17.96% | |
| 5Y Return (annualized) | +2.79% | +12.54% | |
| Volatility (annualized) | 7.1% | 14.6% | |
| Max Drawdown | -29.1% | -58.8% | |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Feb 25, 2013 | Nov 10, 2006 |
HYLS vs VYM Performance
First Trust Tactical High Yield ETF (HYLS) 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 HYLS returned +3.38% while VYM returned +26.05%. Year to date, HYLS is up 1.04% versus a gain of 15.45% for VYM.
Over three years, HYLS compounded at +7.33% per year against +17.96% for VYM; over five years the annualized figures are +2.79% and +12.54% respectively. Across the full 13-year window we track, VYM has the edge at +7.06% annualized vs +0.97%. 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 7.1% for HYLS. 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 -29.1% for HYLS 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 0.74. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
HYLS charges 0.69% per year while VYM charges 0.04%. On a $10,000 position that is $69 vs $4 annually, a gap of $65 per year that compounds over a long holding period. On income, HYLS currently yields 6.71% against 2.86% for VYM.
Holdings Overlap
HYLS and VYM share 0 holdings out of 777 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, HYLS or VYM?
HYLS has an expense ratio of 0.69% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $65 per year of difference.
Which performed better, HYLS or VYM?
Over the past year HYLS returned +3.38% vs +26.05% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (13 years), HYLS annualized +0.97% vs +7.06% for VYM. Past performance does not guarantee future results.
Which is riskier, HYLS or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 7.1% for HYLS. Worst drawdown: HYLS -29.1% vs VYM -58.8%.
Should I hold both HYLS and VYM?
HYLS and VYM have a monthly-return correlation of 0.74, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between HYLS and VYM?
HYLS and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 777 unique securities.
Which pays a higher dividend, HYLS or VYM?
HYLS yields 6.71% while VYM yields 2.86%, so HYLS currently pays the higher dividend yield.
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