FAD vs VYM
First Trust Multi Cap Growth AlphaDEX Fund vs Vanguard High Dividend Yield ETF
Which is better, FAD or VYM?
Mid Cap Growth against Large Cap Value.
VYM has a lower expense ratio. FAD led over 3Y and the full window, VYM over 1Y and 5Y. FAD is less concentrated, with 4.8% of the fund in its ten largest positions against 25.9%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | FAD | VYM |
|---|---|---|
| Expense Ratio | 0.63% | 0.04%Best |
| AUM | $584M | $81.6B |
| Dividend Yield | 0.10% | 2.24% |
| Holdings | 677 | 613 |
| YTD Return | +12.67% | +14.82%Best |
| 1Y Return | +18.84% | +20.84%Best |
| 3Y Return (annualized) | +20.98%Best | +18.64% |
| 5Y Return (annualized) | +8.64% | +12.28%Best |
| Volatility (annualized) | 18.6% | 14.7%Best |
| Max Drawdown | -54.5%Best | -58.8% |
| $10,000 over 5 years | $15,134 | $17,845Best |
| Top 10 Weight | 4.8%Best | 25.9% |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Mid Cap Growth | Large Cap Value |
| Inception | May 8, 2007 | Nov 10, 2006 |
Volatility and max drawdown are measured over the window both funds cover: May 10, 2007 to Sep 4, 2026 (19.3 years).
FAD vs VYM growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 19.3 years both funds cover.
FAD vs VYM Performance
First Trust Multi Cap Growth AlphaDEX Fund (FAD) is an ETF from First Trust Portfolios (US) and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year FAD returned +18.84% while VYM returned +20.84%. Year to date, FAD is up 12.67% versus a gain of 14.82% for VYM.
Over three years, FAD compounded at +20.98% per year against +18.64% for VYM; over five years the annualized figures are +8.64% and +12.28% respectively. Across the full 19-year window we track, FAD has the edge at +10.00% annualized vs +6.79%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FAD has been the more volatile fund, with annualized monthly volatility of 18.6% compared with 14.7% for VYM. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -54.5% for FAD and -58.8% for VYM. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.80. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FAD charges 0.63% per year while VYM charges 0.04%. On a $10,000 position that is $63 vs $4 annually, a gap of $59 per year that compounds over a long holding period. On income, FAD currently yields 0.10% against 2.24% for VYM.
Holdings Overlap
16.5% of FAD's money is in holdings VYM also owns. 38.2% of VYM's money is in holdings FAD also owns.
The two portfolios partly overlap.
96 positions in common, counted across the 668 positions we hold weights for in FAD and 603 in VYM, against full books of 677 and 613.
What only one of them owns
Our book lists 473 positions for VYM that do not appear in our book for FAD (59.2% of the fund), and 558 for FAD that do not appear in VYM (80.7%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in FAD | Weight in VYM | Difference |
|---|---|---|---|
| AVGOBroadcom Inc | 0.30% | 7.29% | 6.99% |
| JPMJpmorgan Chase | 0.20% | 3.38% | 3.18% |
| JNJJohnson & Johnson - Common | 0.28% | 2.54% | 2.26% |
| CATCaterpillar, Inc. | 0.38% | 2.01% | 1.63% |
| CSCOCisco Systems Inc. - Ordinary Shares | 0.38% | 1.93% | 1.55% |
| ABBVAbbvie Inc. | 0.18% | 1.85% | 1.67% |
| MRKMerck & Company Inc | 0.27% | 1.32% | 1.05% |
| GSGoldman Sachs Group Inc/The | 0.39% | 1.15% | 0.76% |
| MSMorgan Stanley | 0.49% | 0.97% | 0.48% |
| KOCoca Cola Co. | 0.10% | 1.31% | 1.21% |
38.2% of VYM is already inside FAD.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
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Frequently Asked Questions
Which is cheaper, FAD or VYM?
FAD has an expense ratio of 0.63% while VYM charges 0.04%. VYM is the cheaper option, by $59 a year on a $10,000 investment.
Which performed better, FAD or VYM?
Over the past year FAD returned +18.84% vs +20.84% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (19 years), FAD annualized +10.00% vs +6.79% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FAD or VYM?
FAD has been the more volatile fund at 18.6% annualized versus 14.7% for VYM. Worst drawdown: FAD -54.5% vs VYM -58.8%.
Should I hold both FAD and VYM?
FAD and VYM have a monthly-return correlation of 0.80, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between FAD and VYM?
38.2% of VYM's money is in holdings FAD also owns. 38.2% of VYM's is in holdings FAD also owns. They hold 96 positions in common, counted across the 668 positions we hold weights for in FAD and 603 in VYM.
Which pays a higher dividend, FAD or VYM?
FAD yields 0.10% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.
Is VYM better than FAD?
VYM has a lower expense ratio. FAD led over 3Y and the full window, VYM over 1Y and 5Y. FAD is less concentrated, with 4.8% of the fund in its ten largest positions against 25.9%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.