SKYY vs. VGT
Compare and contrast key facts about First Trust ISE Cloud Computing Index Fund (SKYY) and Vanguard Information Technology ETF (VGT).
SKYY and VGT are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. SKYY is a passively managed fund by First Trust that tracks the performance of the ISE Cloud Computing Index. It was launched on Jul 5, 2011. VGT is a passively managed fund by Vanguard that tracks the performance of the MSCI US Investable Market Information Technology 25/50 Index. It was launched on Jan 26, 2004. Both SKYY and VGT 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: SKYY or VGT.
Key characteristics
| SKYY | VGT | |
|---|---|---|
| YTD Return | 4.65% | 5.51% |
| 1Y Return | 49.94% | 36.46% |
| 3Y Return (Ann) | -1.66% | 12.37% |
| 5Y Return (Ann) | 8.92% | 20.09% |
| 10Y Return (Ann) | 14.16% | 20.31% |
| Sharpe Ratio | 2.34 | 1.95 |
| Daily Std Dev | 21.90% | 18.44% |
| Max Drawdown | -53.20% | -54.63% |
| Current Drawdown | -22.64% | -3.68% |
Correlation
The correlation between SKYY and VGT is 0.88, 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
SKYY vs. VGT - Performance Comparison
In the year-to-date period, SKYY achieves a 4.65% return, which is significantly lower than VGT's 5.51% return. Over the past 10 years, SKYY has underperformed VGT with an annualized return of 14.16%, while VGT has yielded a comparatively higher 20.31% 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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SKYY vs. VGT - Expense Ratio Comparison
SKYY has a 0.60% expense ratio, which is higher than VGT's 0.10% expense ratio.
Risk-Adjusted Performance
SKYY vs. VGT - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for First Trust ISE Cloud Computing Index Fund (SKYY) and Vanguard Information Technology ETF (VGT). 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
SKYY vs. VGT - Dividend Comparison
SKYY has not paid dividends to shareholders, while VGT's dividend yield for the trailing twelve months is around 0.71%.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
SKYY First Trust ISE Cloud Computing Index Fund | 0.00% | 0.00% | 0.23% | 0.78% | 0.17% | 0.54% | 0.94% | 0.27% | 0.35% | 0.40% | 0.16% | 0.00% |
VGT Vanguard Information Technology ETF | 0.71% | 0.65% | 0.91% | 0.64% | 0.82% | 1.11% | 1.29% | 0.99% | 1.31% | 1.28% | 1.12% | 1.05% |
Drawdowns
SKYY vs. VGT - Drawdown Comparison
The maximum SKYY drawdown since its inception was -53.20%, roughly equal to the maximum VGT drawdown of -54.63%. Use the drawdown chart below to compare losses from any high point for SKYY and VGT. For additional features, visit the drawdowns tool.
Volatility
SKYY vs. VGT - Volatility Comparison
The current volatility for First Trust ISE Cloud Computing Index Fund (SKYY) is 6.38%, while Vanguard Information Technology ETF (VGT) has a volatility of 6.95%. This indicates that SKYY experiences smaller price fluctuations and is considered to be less risky than VGT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.