ILDR vs VYM

Quick Verdict

VYM has a lower expense ratio. ILDR delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.

Lower Fees: VYMHigher Returns: ILDRMore Diversified: VYM

Side-by-Side Comparison

MetricILDRVYMWinner
Expense Ratio0.75%0.04%
AUM$294M$79.0B
Dividend Yield0.00%2.86%
Holdings77568
YTD Return+15.67%+15.20%
1Y Return+26.85%+25.56%
3Y Return (annualized)+28.33%+17.86%
5Y Return (annualized)+11.44%+12.35%
Volatility (annualized)23.4%14.6%
Max Drawdown-44.6%-58.8%
Fund FamilyFirst Trust Portfolios (US)Vanguard (US)
CategoryEquityEquity
InceptionMay 25, 2021Nov 10, 2006

ILDR vs VYM Performance

First Trust Innovation Leaders ETF (ILDR) 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 ILDR returned +26.85% while VYM returned +25.56%. Year to date, ILDR is up 15.67% versus a gain of 15.20% for VYM.

Over three years, ILDR compounded at +28.33% per year against +17.86% for VYM; over five years the annualized figures are +11.44% and +12.35% respectively. Across the full 5-year window we track, ILDR has the edge at +13.08% annualized vs +7.05%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

ILDR has been the more volatile fund, with annualized monthly volatility of 23.4% compared with 14.6% 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 -44.6% for ILDR 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 0.51. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

ILDR charges 0.75% per year while VYM charges 0.04%. On a $10,000 position that is $75 vs $4 annually, a gap of $71 per year that compounds over a long holding period. On income, ILDR currently yields 0.00% against 2.86% for VYM.

Holdings Overlap

5.9%overlap

ILDR and VYM share 5 holdings out of 632 unique holdings combined, representing a 5.9% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in ILDRWeight in VYMDifference
AVGO3.96%6.47%2.51%
ETN1.99%0.65%1.34%
MRK0.78%1.37%0.59%
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Frequently Asked Questions

Which is cheaper, ILDR or VYM?

ILDR has an expense ratio of 0.75% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $71 per year of difference.

Which performed better, ILDR or VYM?

Over the past year ILDR returned +26.85% vs +25.56% for VYM, so ILDR leads on 1-year performance. Over the longest common window we track (5 years), ILDR annualized +13.08% vs +7.05% for VYM. Past performance does not guarantee future results.

Which is riskier, ILDR or VYM?

ILDR has been the more volatile fund at 23.4% annualized versus 14.6% for VYM. Worst drawdown: ILDR -44.6% vs VYM -58.8%.

Should I hold both ILDR and VYM?

ILDR and VYM have a monthly-return correlation of 0.51, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between ILDR and VYM?

ILDR and VYM share 5 common holdings with a 5.9% weight overlap. Combined, they hold 632 unique securities.

Which pays a higher dividend, ILDR or VYM?

ILDR yields 0.00% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.

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