UDIV vs. VYM

Last updated Aug 2, 2026

UDIV (Franklin U.S. Core Dividend Tilt Index ETF) and VYM (Vanguard High Dividend Yield ETF) are both Dividend funds - UDIV tracks the Linked Morningstar US Dividend Enhanced Select Index while VYM tracks the FTSE High Dividend Yield Index. Both are passively managed. Over the past 10 years, UDIV returned 11.54%/yr vs 11.71%/yr for VYM. Their 0.77 correlation means they have sometimes moved together and sometimes differently. UDIV charges 0.06%/yr vs 0.04%/yr for VYM.

Performance

UDIV vs. VYM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Franklin U.S. Core Dividend Tilt Index ETF (UDIV) and Vanguard High Dividend Yield ETF (VYM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both investments are quite close, with UDIV having a 13.87% return and VYM slightly higher at 14.21%. Both investments have delivered pretty close results over the past 10 years, with UDIV having a 11.54% annualized return and VYM not far ahead at 11.71%.

UDIV

• 1D: 0.91%
• 1M: 0.58%
• 6M: 11.30%
• YTD: 13.87%
• 1Y: 25.58%
• 3Y*: 21.43%
• 5Y*: 13.98%
• 10Y*: 11.54%
• ALL TIME*: 11.74%

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)
UDIV Franklin U.S. Core Dividend Tilt Index ETF	$516.03K	$427.19K	$922.08K
VYM Vanguard High Dividend Yield ETF	$195.34M	$198.02M	$200.78M

UDIV vs. VYM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
UDIV Franklin U.S. Core Dividend Tilt Index ETF	13.87%	19.00%	25.61%	25.21%	-15.00%	19.66%	5.54%	24.60%	-8.83%	17.44%
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 UDIV 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.	0.75
Correlation (5Y) Shows whether the relationship held over a longer period.	0.81
Correlation (10Y) Provides a long-term view across more market conditions.	0.78
Correlation (All Time) Calculated using the full available price history since Jun 3, 2016	0.77

The correlation between UDIV and VYM shifts across timeframes, from 0.68 (1 year) to 0.81 (5 years), reflecting how their relationship changes across market environments.

UDIV vs. VYM - Sectors Allocation Comparison

Sectors	UDIV	VYM
Technology	40.3%	17.8%
Financial Services	11.4%	21.0%
Communication Services	10.1%	3.0%
Consumer Cyclical	8.9%	6.8%
Healthcare	7.7%	13.2%
Industrials	6.0%	12.6%
Consumer Defensive	5.4%	8.1%
Real Estate	3.7%	0.0%
Energy	3.3%	8.6%
Utilities	2.7%	5.7%
Basic Materials	0.7%	3.3%

Return for Risk

UDIV vs. VYM — Risk / Return Rank

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

UDIV

UDIV Risk / Return Rank: 80
UDIV Sharpe Ratio Rank: 80
UDIV Sortino Ratio Rank: 78
UDIV Omega Ratio Rank: 79
UDIV Calmar Ratio Rank: 79
UDIV Martin Ratio Rank: 84

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.

UDIV vs. VYM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Franklin U.S. Core Dividend Tilt Index ETF (UDIV) 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.

	UDIV	VYM	Difference
Sharpe ratio: Return per unit of total volatility	1.83	2.34	-0.51
Sortino ratio: Return per unit of downside risk	2.50	3.35	-0.84
Omega ratio: Gain probability vs. loss probability	1.33	1.43	-0.10
Calmar ratio: Return relative to maximum drawdown	2.82	3.56	-0.74
Martin ratio: Return relative to average drawdown	11.60	13.40	-1.80

UDIV vs. VYM - Sharpe Ratio Comparison

The current UDIV Sharpe Ratio is 1.83, which is comparable to the VYM Sharpe Ratio of 2.34. The chart below compares the historical Sharpe Ratios of UDIV 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

UDIV vs. VYM - Drawdown Comparison

The maximum UDIV drawdown since its inception was -35.21%, smaller than the maximum VYM drawdown of -56.98%. Use the drawdown chart below to compare losses from any high point for UDIV and VYM.

Drawdown Indicators

	UDIV	VYM	Difference
Max Drawdown Largest peak-to-trough decline	-35.21%	-56.98%	+21.77%
Max Drawdown (1Y) Largest decline over 1 year	-8.44%	-6.69%	-1.75%
Max Drawdown (3Y) Largest decline over 3 years	-19.19%	-14.46%	-4.73%
Max Drawdown (5Y) Largest decline over 5 years	-23.18%	-15.84%	-7.34%
Max Drawdown (10Y) Largest decline over 10 years	-35.21%	-35.21%	0.00%
Current Drawdown Current decline from peak	-1.66%	-1.15%	-0.51%
Average Drawdown Average peak-to-trough decline	-4.60%	-7.14%	+2.54%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.05%	1.78%	+0.27%

Volatility

UDIV vs. VYM - Volatility Comparison

Franklin U.S. Core Dividend Tilt Index ETF (UDIV) has a higher volatility of 3.90% compared to Vanguard High Dividend Yield ETF (VYM) at 2.46%. This indicates that UDIV'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

	UDIV	VYM	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.90%	2.46%	+1.44%
Volatility (6M) Calculated over the trailing 6-month period	10.26%	7.42%	+2.84%
Volatility (1Y) Calculated over the trailing 1-year period	13.02%	10.29%	+2.73%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	15.66%	13.87%	+1.79%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.17%	16.29%	-0.12%

UDIV vs. VYM - Expense Ratio Comparison

UDIV has a 0.06% expense ratio, which is higher than VYM's 0.04% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

UDIV vs. VYM - Dividend Comparison

UDIV's dividend yield for the trailing twelve months is around 1.48%, less than VYM's 2.24% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
UDIV Franklin U.S. Core Dividend Tilt Index ETF	1.48%	1.53%	2.05%	1.91%	3.20%	2.97%	2.90%	3.40%	3.74%	3.47%	1.63%	0.00%
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 UDIV and VYM in my portfolio?

UDIV 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, UDIV or VYM?

UDIV has higher volatility (3.90%) compared to VYM (2.46%). In terms of maximum drawdown, UDIV dropped -35.21% vs VYM's -56.98%.

Which ETF is better, UDIV or VYM?

On 10-year performance, VYM leads with 11.71% vs 11.54% for UDIV. 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, UDIV or VYM?

Over the 10-year period, VYM has performed better with a 11.71% return vs 11.54%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, UDIV or VYM?

VYM is cheaper with a 0.04% expense ratio, compared with 0.06% for UDIV.

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

VYM has the higher dividend yield at 2.24%, compared with 1.48% for UDIV.

What is the main difference between UDIV and VYM?

UDIV tracks Linked Morningstar US Dividend Enhanced Select Index, while VYM tracks FTSE High Dividend Yield Index. They also come from different issuers: Franklin Templeton and Vanguard. Their fees differ too: 0.06% for UDIV and 0.04% for VYM.

Which has better risk-adjusted returns?

VYM currently has the higher Sharpe Ratio (2.34 vs 1.83), 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.