FCTR vs VYM

FCTRFFirst Trust Lunt U.S. Factor Rotation ETF

VYMAVanguard High Dividend Yield ETF

In short

FCTR Most multifactor ETFs blend value, momentum, quality and low volatility all at once. FCTR ranks them instead and rotates toward whichever are winning on relative strength. A factor market-timer in a category built on holding everything.

VYM The no-frills dividend workhorse. VYM buys the higher-yielding end of the US market, roughly 600 names, for four basis points: no quality screen, no dividend-growth-streak test, just yield, at scale since 2006.

Stated mandate

FCTR The Fund aims to outperform the large- and mid-capitalization U.S. equity market before fees and expenses by investing primarily in U.S.-listed large- and mid-capitalization stocks selected through a proprietary factor-rotation model.

VYM The Fund seeks to track a benchmark index measuring the investment return of common stocks from companies characterized by high dividend yields.

Why people hold it

• FCTR The rotation is the whole product: value, momentum, quality and low volatility get scored on risk-adjusted relative strength, and exposure leans toward the leaders rather than averaging across all four.stockanalysis.com
• Roughly 170 large- and mid-cap U.S. stocks sit underneath, so the basket still reads like a core equity sleeve even when the factor tilt swings. The holdings are the strongest part of the package.
• Live since 2018, which means the rotation model has a real-world record through a full market cycle instead of a backtest.
• The stated yardstick is candid: a custom 80% MSCI USA / 20% MSCI USA Minimum Volatility blend, not a flattering plain-vanilla comparison.

• VYM Four basis points a year, against a peer-group median near 0.32%. Cheaper than cohort neighbors VONV (0.06%) and FNDX (0.25%).
• Running since 2006 and now a multi-billion-dollar fund that trades actively, so ordinary orders tend to fill at tight spreads.
• Simple mandate: track the FTSE High Dividend Yield Index of US common stocks screened on yield. No manager discretion, no options overlay, plain 1940-Act fund.vanguard.com
• Pays quarterly, and among 100-plus value and multifactor rivals it stands as one of the strongest overall packages in the group.

Worth knowing

• FCTR At 0.65% a year, it runs about double the typical U.S. multifactor ETF and several times cheaper index-based peers like FNDX (0.25%) or VONV (0.06%).
• It trades lightly next to the giants in its category, so the bid/ask spread is a real part of the cost of getting in and out.
• Rotation is a timing call by design. When factor leadership flips quickly, the model can be shifting into a factor as it cools rather than ahead of it.

• VYM The screen is yield, not payout growth or dividend quality, so a company can qualify simply because its share price fell.
• This is a value slice by design, tilted to established payers, so it behaves differently from a total US market fund.
• Roughly 600 holdings, but weight leans toward the largest payers, so the top of the roster does more of the work than the count suggests.

Full FCTR profile⁠

Full VYM profile⁠