UCON vs VYM
UCON vs VYM
First Trust Smith Unconstrained Bond 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 | UCON | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.86% | 0.04% | |
| AUM | $3.3B | $79.0B | |
| Dividend Yield | 5.11% | 2.86% | |
| Holdings | 456 | 568 | |
| YTD Return | +0.68% | +15.80% | |
| 1Y Return | +3.71% | +26.12% | |
| 3Y Return (annualized) | +5.44% | +18.25% | |
| 5Y Return (annualized) | +2.75% | +12.51% | |
| Volatility (annualized) | 4.5% | 14.6% | |
| Max Drawdown | -15.3% | -58.8% | |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jun 4, 2018 | Nov 10, 2006 |
UCON vs VYM Performance
First Trust Smith Unconstrained Bond ETF (UCON) 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 UCON returned +3.71% while VYM returned +26.12%. Year to date, UCON is up 0.68% versus a gain of 15.80% for VYM.
Over three years, UCON compounded at +5.44% per year against +18.25% for VYM; over five years the annualized figures are +2.75% and +12.51% respectively. Across the full 8-year window we track, VYM has the edge at +7.07% annualized vs +2.56%. 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 4.5% for UCON. 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 -15.3% for UCON 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 0.63. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
UCON charges 0.86% per year while VYM charges 0.04%. On a $10,000 position that is $86 vs $4 annually, a gap of $82 per year that compounds over a long holding period. On income, UCON currently yields 5.11% against 2.86% for VYM.
Holdings Overlap
UCON and VYM share 1 holdings out of 877 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in UCON | Weight in VYM | Difference |
|---|---|---|---|
| C | 0.15% | 0.81% | 0.66% |
Frequently Asked Questions
Which is cheaper, UCON or VYM?
UCON has an expense ratio of 0.86% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $82 per year of difference.
Which performed better, UCON or VYM?
Over the past year UCON returned +3.71% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (8 years), UCON annualized +2.56% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, UCON or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 4.5% for UCON. Worst drawdown: UCON -15.3% vs VYM -58.8%.
Should I hold both UCON and VYM?
UCON and VYM have a monthly-return correlation of 0.63, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between UCON and VYM?
UCON and VYM share 1 common holdings with a 0.1% weight overlap. Combined, they hold 877 unique securities.
Which pays a higher dividend, UCON or VYM?
UCON yields 5.11% while VYM yields 2.86%, so UCON currently pays the higher dividend yield.
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