RDVI vs VYM

Quick Verdict

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

Lower Fees: VYMHigher Returns: RDVIMore Diversified: VYM

Side-by-Side Comparison

MetricRDVIVYMWinner
Expense Ratio0.75%0.04%
AUM$3.5B$79.0B
Dividend Yield8.05%2.86%
Holdings75568
YTD Return+15.08%+15.80%
1Y Return+26.68%+26.12%
3Y Return (annualized)+18.16%+18.25%
5Y Return (annualized)-+12.51%
Volatility (annualized)15.0%14.6%
Max Drawdown-18.4%-58.8%
Fund FamilyFirst Trust Portfolios (US)Vanguard (US)
CategoryEquityEquity
InceptionOct 19, 2022Nov 10, 2006

RDVI vs VYM Performance

FT Vest Rising Dividend Achievers Target Income ETF (RDVI) 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 RDVI returned +26.68% while VYM returned +26.12%. Year to date, RDVI is up 15.08% versus a gain of 15.80% for VYM.

Over three years, RDVI compounded at +18.16% per year against +18.25% for VYM. Across the full 4-year window we track, RDVI has the edge at +20.51% annualized vs +7.07%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

RDVI has been the more volatile fund, with annualized monthly volatility of 15.0% 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 -18.4% for RDVI 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 0.88. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

RDVI 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, RDVI currently yields 8.05% against 2.86% for VYM.

Holdings Overlap

12.3%overlap

RDVI and VYM share 34 holdings out of 595 unique holdings combined, representing a 12.3% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in RDVIWeight in VYMDifference
JPM:US2.08%3.36%1.28%
BAC2.16%1.39%0.77%
BK2.40%0.36%2.04%
TRVProProPro
CBProProPro
ALLProProPro
ADPProProPro
WSMProProPro
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SNAProProPro
See all 10 holdings RDVI shares with VYM
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Frequently Asked Questions

Which is cheaper, RDVI or VYM?

RDVI 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, RDVI or VYM?

Over the past year RDVI returned +26.68% vs +26.12% for VYM, so RDVI leads on 1-year performance. Over the longest common window we track (4 years), RDVI annualized +20.51% vs +7.07% for VYM. Past performance does not guarantee future results.

Which is riskier, RDVI or VYM?

RDVI has been the more volatile fund at 15.0% annualized versus 14.6% for VYM. Worst drawdown: RDVI -18.4% vs VYM -58.8%.

Should I hold both RDVI and VYM?

RDVI and VYM have a monthly-return correlation of 0.88, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between RDVI and VYM?

RDVI and VYM share 34 common holdings with a 12.3% weight overlap. Combined, they hold 595 unique securities.

Which pays a higher dividend, RDVI or VYM?

RDVI yields 8.05% while VYM yields 2.86%, so RDVI currently pays the higher dividend yield.

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