LALT vs VYM
LALT vs VYM
First Trust Multi-Strategy Alternative 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 | LALT | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 1.18% | 0.04% | |
| AUM | $294M | $79.0B | |
| Dividend Yield | 3.68% | 2.86% | |
| Holdings | 9 | 568 | |
| YTD Return | +8.42% | +15.80% | |
| 1Y Return | +15.74% | +26.12% | |
| 3Y Return (annualized) | +9.51% | +18.25% | |
| 5Y Return (annualized) | - | +12.51% | |
| Volatility (annualized) | 4.7% | 14.6% | |
| Max Drawdown | -7.0% | -58.8% | |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) | |
| Category | Alternative | Equity | |
| Inception | Jan 31, 2023 | Nov 10, 2006 |
LALT vs VYM Performance
First Trust Multi-Strategy Alternative ETF (LALT) 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 LALT returned +15.74% while VYM returned +26.12%. Year to date, LALT is up 8.42% versus a gain of 15.80% for VYM.
Over three years, LALT compounded at +9.51% per year against +18.25% for VYM. Across the full 4-year window we track, LALT has the edge at +8.22% annualized vs +7.07%. 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 4.7% for LALT. 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 -7.0% for LALT 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 0.50. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
LALT charges 1.18% per year while VYM charges 0.04%. On a $10,000 position that is $118 vs $4 annually, a gap of $114 per year that compounds over a long holding period. On income, LALT currently yields 3.68% against 2.86% for VYM.
Holdings Overlap
LALT and VYM share 0 holdings out of 565 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, LALT or VYM?
LALT has an expense ratio of 1.18% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $114 per year of difference.
Which performed better, LALT or VYM?
Over the past year LALT returned +15.74% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (4 years), LALT annualized +8.22% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, LALT or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 4.7% for LALT. Worst drawdown: LALT -7.0% vs VYM -58.8%.
Should I hold both LALT and VYM?
LALT and VYM have a monthly-return correlation of 0.50, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between LALT and VYM?
LALT and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 565 unique securities.
Which pays a higher dividend, LALT or VYM?
LALT yields 3.68% while VYM yields 2.86%, so LALT currently pays the higher dividend yield.
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