MMSC vs VYM

Quick Verdict

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

Lower Fees: VYMHigher Returns: MMSCMore Diversified: VYM

Side-by-Side Comparison

MetricMMSCVYMWinner
Expense Ratio0.95%0.04%
AUM$51M$79.0B
Dividend Yield0.00%2.86%
Holdings202568
YTD Return+17.19%+15.45%
1Y Return+35.89%+26.05%
3Y Return (annualized)+20.79%+17.96%
5Y Return (annualized)-+12.54%
Volatility (annualized)21.5%14.6%
Max Drawdown-40.8%-58.8%
Fund FamilyFirst Trust Portfolios (US)Vanguard (US)
CategoryEquityEquity
InceptionOct 13, 2021Nov 10, 2006

MMSC vs VYM Performance

First Trust Multi-Manager Small Cap Opportunities ETF (MMSC) 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 MMSC returned +35.89% while VYM returned +26.05%. Year to date, MMSC is up 17.19% versus a gain of 15.45% for VYM.

Over three years, MMSC compounded at +20.79% per year against +17.96% for VYM. Across the full 5-year window we track, MMSC has the edge at +7.16% annualized vs +7.06%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

MMSC has been the more volatile fund, with annualized monthly volatility of 21.5% 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 -40.8% for MMSC 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 0.69. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

MMSC charges 0.95% per year while VYM charges 0.04%. On a $10,000 position that is $95 vs $4 annually, a gap of $91 per year that compounds over a long holding period. On income, MMSC currently yields 0.00% against 2.86% for VYM.

Holdings Overlap

0.5%overlap

MMSC and VYM share 16 holdings out of 750 unique holdings combined, representing a 0.5% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in MMSCWeight in VYMDifference
FCFS1.20%0.03%1.17%
VIRT0.78%0.01%0.77%
PIPR0.57%0.02%0.55%
VNOMProProPro
MGYProProPro
WETFProProPro
AROCProProPro
MMSProProPro
FTAIProProPro
HRIProProPro
See all 10 holdings MMSC shares with VYM
Exact weights in each fund and the difference, for every overlapping position.
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Frequently Asked Questions

Which is cheaper, MMSC or VYM?

MMSC has an expense ratio of 0.95% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $91 per year of difference.

Which performed better, MMSC or VYM?

Over the past year MMSC returned +35.89% vs +26.05% for VYM, so MMSC leads on 1-year performance. Over the longest common window we track (5 years), MMSC annualized +7.16% vs +7.06% for VYM. Past performance does not guarantee future results.

Which is riskier, MMSC or VYM?

MMSC has been the more volatile fund at 21.5% annualized versus 14.6% for VYM. Worst drawdown: MMSC -40.8% vs VYM -58.8%.

Should I hold both MMSC and VYM?

MMSC and VYM have a monthly-return correlation of 0.69, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between MMSC and VYM?

MMSC and VYM share 16 common holdings with a 0.5% weight overlap. Combined, they hold 750 unique securities.

Which pays a higher dividend, MMSC or VYM?

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

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