FDL vs. VYM
Compare and contrast key facts about First Trust Morningstar Dividend Leaders Index Fund (FDL) and Vanguard High Dividend Yield ETF (VYM).
FDL and VYM are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. FDL is a passively managed fund by First Trust that tracks the performance of the Morningstar Dividend Leaders Index. It was launched on Mar 9, 2006. VYM is a passively managed fund by Vanguard that tracks the performance of the FTSE High Dividend Yield Index. It was launched on Nov 10, 2006. Both FDL and VYM are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: FDL or VYM.
Key characteristics
| FDL | VYM | |
|---|---|---|
| YTD Return | 5.66% | 6.24% |
| 1Y Return | 11.59% | 14.71% |
| 3Y Return (Ann) | 8.55% | 7.82% |
| 5Y Return (Ann) | 9.24% | 9.59% |
| 10Y Return (Ann) | 9.29% | 9.76% |
| Sharpe Ratio | 0.80 | 1.22 |
| Daily Std Dev | 13.27% | 10.98% |
| Max Drawdown | -65.93% | -56.98% |
| Current Drawdown | -2.34% | -2.52% |
Correlation
The correlation between FDL and VYM is 0.91, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
FDL vs. VYM - Performance Comparison
In the year-to-date period, FDL achieves a 5.66% return, which is significantly lower than VYM's 6.24% return. Over the past 10 years, FDL has underperformed VYM with an annualized return of 9.29%, while VYM has yielded a comparatively higher 9.76% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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FDL vs. VYM - Expense Ratio Comparison
FDL has a 0.45% expense ratio, which is higher than VYM's 0.06% expense ratio.
Risk-Adjusted Performance
FDL vs. VYM - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for First Trust Morningstar Dividend Leaders Index Fund (FDL) and Vanguard High Dividend Yield ETF (VYM). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
Dividends
FDL vs. VYM - Dividend Comparison
FDL's dividend yield for the trailing twelve months is around 4.44%, more than VYM's 2.90% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
FDL First Trust Morningstar Dividend Leaders Index Fund | 4.44% | 4.58% | 3.58% | 4.59% | 4.48% | 3.75% | 3.97% | 3.18% | 2.93% | 3.65% | 3.35% | 3.13% |
VYM Vanguard High Dividend Yield ETF | 2.90% | 3.12% | 3.01% | 2.76% | 3.18% | 3.03% | 3.40% | 2.80% | 2.91% | 3.22% | 2.78% | 2.81% |
Drawdowns
FDL vs. VYM - Drawdown Comparison
The maximum FDL drawdown since its inception was -65.93%, which is greater than VYM's maximum drawdown of -56.98%. Use the drawdown chart below to compare losses from any high point for FDL and VYM. For additional features, visit the drawdowns tool.
Volatility
FDL vs. VYM - Volatility Comparison
First Trust Morningstar Dividend Leaders Index Fund (FDL) has a higher volatility of 4.19% compared to Vanguard High Dividend Yield ETF (VYM) at 3.35%. This indicates that FDL's price experiences larger fluctuations and is considered to be riskier than VYM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.