FVD vs. VYM

Last updated Aug 2, 2026

FVD (First Trust Value Line Dividend Index Fund) and VYM (Vanguard High Dividend Yield ETF) are both exchange-traded funds - FVD is a Mid Cap Value Equities fund tracking the Value Line Dividend Index, while VYM is a Dividend fund tracking the FTSE High Dividend Yield Index. Both are passively managed. Over the past 10 years, FVD returned 8.75%/yr vs 11.71%/yr for VYM. Their correlation of 0.91 means they have usually moved in the same direction. FVD charges 0.61%/yr vs 0.04%/yr for VYM.

Performance

FVD vs. VYM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust Value Line Dividend Index Fund (FVD) and Vanguard High Dividend Yield ETF (VYM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FVD achieves a 10.07% return, which is significantly lower than VYM's 14.21% return. Over the past 10 years, FVD has underperformed VYM with an annualized return of 8.75%, while VYM has yielded a comparatively higher 11.71% annualized return.

FVD

• 1D: -0.18%
• 1M: 1.52%
• 6M: 5.94%
• YTD: 10.07%
• 1Y: 14.68%
• 3Y*: 9.72%
• 5Y*: 6.75%
• 10Y*: 8.75%
• ALL TIME*: 9.74%

VYM

• 1D: 0.00%
• 1M: 1.56%
• 6M: 9.31%
• YTD: 14.21%
• 1Y: 24.90%
• 3Y*: 16.96%
• 5Y*: 12.20%
• 10Y*: 11.71%
• ALL TIME*: 9.38%

*Multi-year figures are annualized to reflect compound growth (CAGR)

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
FVD First Trust Value Line Dividend Index Fund	$21.15M	$21.63M	$33.04M
VYM Vanguard High Dividend Yield ETF	$195.34M	$198.02M	$200.78M

FVD vs. VYM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FVD First Trust Value Line Dividend Index Fund	10.07%	8.16%	10.04%	4.11%	-5.18%	25.08%	-0.02%	26.58%	-3.49%	12.51%
VYM Vanguard High Dividend Yield ETF	14.21%	15.42%	17.60%	6.57%	-0.43%	26.20%	1.15%	24.06%	-5.92%	16.42%

Correlation

The correlation between FVD and VYM is 0.68, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.68
Correlation (3Y) Balances recent behavior with more history.	0.83
Correlation (5Y) Shows whether the relationship held over a longer period.	0.87
Correlation (10Y) Provides a long-term view across more market conditions.	0.89
Correlation (All Time) Calculated using the full available price history since Nov 16, 2006	0.91

Over the past year, the correlation between FVD and VYM has dropped to 0.68 - well below their long-term average of 0.91, suggesting their price drivers have been diverging.

FVD vs. VYM - Sectors Allocation Comparison

Sectors	FVD	VYM
Financial Services	19.8%	21.0%
Utilities	17.3%	5.7%
Industrials	14.4%	12.6%
Consumer Defensive	10.9%	8.1%
Healthcare	8.2%	13.2%
Real Estate	8.1%	0.0%
Technology	6.7%	17.8%
Consumer Cyclical	5.3%	6.8%
Energy	3.5%	8.6%
Communication Services	3.1%	3.0%
Basic Materials	2.8%	3.3%

Return for Risk

FVD vs. VYM — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

FVD

FVD Risk / Return Rank: 57
FVD Sharpe Ratio Rank: 60
FVD Sortino Ratio Rank: 67
FVD Omega Ratio Rank: 56
FVD Calmar Ratio Rank: 56
FVD Martin Ratio Rank: 45

VYM

VYM Risk / Return Rank: 90
VYM Sharpe Ratio Rank: 92
VYM Sortino Ratio Rank: 92
VYM Omega Ratio Rank: 91
VYM Calmar Ratio Rank: 88
VYM Martin Ratio Rank: 88

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

FVD vs. VYM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Value Line Dividend Index Fund (FVD) 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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	FVD	VYM	Difference
Sharpe ratio: Return per unit of total volatility	1.42	2.34	-0.92
Sortino ratio: Return per unit of downside risk	2.19	3.35	-1.16
Omega ratio: Gain probability vs. loss probability	1.25	1.43	-0.18
Calmar ratio: Return relative to maximum drawdown	1.99	3.56	-1.58
Martin ratio: Return relative to average drawdown	5.07	13.40	-8.33

FVD vs. VYM - Sharpe Ratio Comparison

The current FVD Sharpe Ratio is 1.42, which is lower than the VYM Sharpe Ratio of 2.34. The chart below compares the historical Sharpe Ratios of FVD and VYM, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

FVD vs. VYM - Drawdown Comparison

The maximum FVD drawdown since its inception was -51.00%, smaller than the maximum VYM drawdown of -56.98%. Use the drawdown chart below to compare losses from any high point for FVD and VYM.

Drawdown Indicators

	FVD	VYM	Difference
Max Drawdown Largest peak-to-trough decline	-51.00%	-56.98%	+5.98%
Max Drawdown (1Y) Largest decline over 1 year	-7.23%	-6.69%	-0.54%
Max Drawdown (3Y) Largest decline over 3 years	-11.97%	-14.46%	+2.49%
Max Drawdown (5Y) Largest decline over 5 years	-16.41%	-15.84%	-0.57%
Max Drawdown (10Y) Largest decline over 10 years	-35.25%	-35.21%	-0.04%
Current Drawdown Current decline from peak	-1.72%	-1.15%	-0.57%
Average Drawdown Average peak-to-trough decline	-5.42%	-7.14%	+1.72%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.83%	1.78%	+1.05%

Volatility

FVD vs. VYM - Volatility Comparison

First Trust Value Line Dividend Index Fund (FVD) has a higher volatility of 4.37% compared to Vanguard High Dividend Yield ETF (VYM) at 2.46%. This indicates that FVD'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.

Volatility by Period

	FVD	VYM	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.37%	2.46%	+1.91%
Volatility (6M) Calculated over the trailing 6-month period	8.01%	7.42%	+0.59%
Volatility (1Y) Calculated over the trailing 1-year period	10.14%	10.29%	-0.15%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	12.84%	13.87%	-1.03%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	15.47%	16.29%	-0.82%

FVD vs. VYM - Expense Ratio Comparison

FVD has a 0.61% expense ratio, which is higher than VYM's 0.04% expense ratio.

Dividends

FVD vs. VYM - Dividend Comparison

FVD's dividend yield for the trailing twelve months is around 2.23%, which matches VYM's 2.24% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FVD First Trust Value Line Dividend Index Fund	2.23%	2.36%	2.23%	2.34%	2.20%	1.75%	2.31%	2.03%	2.50%	2.10%	2.04%	2.34%
VYM Vanguard High Dividend Yield ETF	2.24%	2.44%	2.74%	3.12%	3.01%	2.76%	3.18%	3.03%	3.40%	2.80%	2.91%	3.22%

Frequently Asked Questions

Can I hold both FVD and VYM in my portfolio?

FVD and VYM have a correlation of 0.68, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FVD or VYM?

FVD has higher volatility (4.37%) compared to VYM (2.46%). In terms of maximum drawdown, FVD dropped -51.00% vs VYM's -56.98%.

Which ETF is better, FVD or VYM?

On 10-year performance, VYM leads with 11.71% vs 8.75% for FVD. On fees, VYM is cheaper at 0.04% per year. On volatility, VYM has been the lower-risk option at 2.46%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FVD or VYM?

Over the 10-year period, VYM has performed better with a 11.71% return vs 8.75%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FVD or VYM?

VYM is cheaper with a 0.04% expense ratio, compared with 0.61% for FVD.

Which ETF pays a higher dividend yield, FVD or VYM?

FVD and VYM have nearly identical dividend yields, around 2.23%.

What is the main difference between FVD and VYM?

FVD is categorized as Mid Cap Value Equities, while VYM is Dividend. FVD tracks Value Line Dividend Index, while VYM tracks FTSE High Dividend Yield Index. They also come from different issuers: First Trust and Vanguard. Their fees differ too: 0.61% for FVD and 0.04% for VYM.

Which has better risk-adjusted returns?

VYM currently has the higher Sharpe Ratio (2.34 vs 1.42), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.