FAN vs VYM
First Trust Global Wind Energy ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. FAN delivered stronger 1-year returns. VYM offers more diversification with 616 holdings.
Side-by-Side Comparison
| Metric | FAN | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.60% | 0.04% | |
| AUM | $256M | $81.6B | |
| Dividend Yield | 0.99% | 2.24% | |
| Holdings | 57 | 616 | |
| YTD Return | +14.91% | +16.42% | |
| 1Y Return | +33.80% | +24.22% | |
| 3Y Return (annualized) | +16.80% | +19.03% | |
| 5Y Return (annualized) | +4.28% | +12.21% | |
| Volatility (annualized) | 24.7% | 14.6% | |
| Max Drawdown | -82.1% | -58.8% | |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jun 16, 2008 | Nov 10, 2006 |
FAN vs VYM Performance
First Trust Global Wind Energy ETF (FAN) is a ETF from First Trust Portfolios (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year FAN returned +33.80% while VYM returned +24.22%. Year to date, FAN is up 14.91% versus a gain of 16.42% for VYM.
Over three years, FAN compounded at +16.80% per year against +19.03% for VYM; over five years the annualized figures are +4.28% and +12.21% respectively. Across the full 18-year window we track, VYM has the edge at +7.10% annualized vs -0.95%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FAN has been the more volatile fund, with annualized monthly volatility of 24.7% compared with 14.6% 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 -82.1% for FAN and -58.8% for VYM. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.67. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FAN charges 0.60% per year while VYM charges 0.04%. On a $10,000 position that is $60 vs $4 annually, a gap of $56 per year that compounds over a long holding period. On income, FAN currently yields 0.99% against 2.24% for VYM.
Holdings Overlap
FAN and VYM share 3 holdings out of 647 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FAN or VYM?
FAN has an expense ratio of 0.60% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $56 per year of difference.
Which performed better, FAN or VYM?
Over the past year FAN returned +33.80% vs +24.22% for VYM, so FAN leads on 1-year performance. Over the longest common window we track (18 years), FAN annualized -0.95% vs +7.10% for VYM. Past performance does not guarantee future results.
Which is riskier, FAN or VYM?
FAN has been the more volatile fund at 24.7% annualized versus 14.6% for VYM. Worst drawdown: FAN -82.1% vs VYM -58.8%.
Should I hold both FAN and VYM?
FAN and VYM have a monthly-return correlation of 0.67, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FAN and VYM?
FAN and VYM share 3 common holdings with a 0.1% weight overlap. Combined, they hold 647 unique securities.
Which pays a higher dividend, FAN or VYM?
FAN yields 0.99% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.
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