FBDC vs VYM
FT Confluence BDC & Specialty Finance Income ETF vs Vanguard High Dividend Yield ETF
Which is better, FBDC or VYM?
Large Cap Blend against Large Cap Value.
VYM has a lower expense ratio. VYM led over 1Y and the full window. VYM is less concentrated, with 25.9% of the fund in its ten largest positions against 77.2%.
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 | FBDC | VYM |
|---|---|---|
| Expense Ratio | 12.44% | 0.04%Best |
| AUM | $35M | $81.6B |
| Dividend Yield | 13.39% | 2.24% |
| Holdings | 42 | 613 |
| YTD Return | -2.14% | +14.82%Best |
| 1Y Return | -6.82% | +20.84%Best |
| 3Y Return (annualized) | - | +18.64% |
| 5Y Return (annualized) | - | +12.28% |
| Volatility (annualized) | 16.7% | 8.6%Best |
| Max Drawdown | -20.6% | -6.7%Best |
| $10,000 over 1.2 years | $9,590 | $12,676Best |
| Top 10 Weight | 77.2% | 25.9%Best |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Value |
| Inception | May 25, 2007 | Nov 10, 2006 |
Volatility and max drawdown, and the $10,000 over 1.2 years row, are measured over the window both funds cover: Jun 30, 2025 to Sep 4, 2026 (1.2 years).
FBDC 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 1.2 years both funds cover.
FBDC vs VYM Performance
FT Confluence BDC & Specialty Finance Income ETF (FBDC) 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 FBDC returned -6.82% while VYM returned +20.84%. Year to date, FBDC is down 2.14% versus a gain of 14.82% for VYM.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FBDC has been the more volatile fund, with annualized monthly volatility of 16.7% compared with 8.6% 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 -20.6% for FBDC and -6.7% 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 0.01. They move largely independently of each other.
Fees and Cost Over Time
FBDC charges 12.44% per year while VYM charges 0.04%. On a $10,000 position that is $1244 vs $4 annually, a gap of $1240 per year that compounds over a long holding period. On income, FBDC currently yields 13.39% against 2.24% for VYM.
Holdings Overlap
We hold position weights for 20 holdings in FBDC and 603 in VYM, totalling 95.0% and 99.5% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 20 positions we hold weights for in FBDC and 603 in VYM, against full books of 42 and 613.
What only one of them owns
Our book lists 570 positions for VYM that do not appear in our book for FBDC (97.4% of the fund), and 20 for FBDC that do not appear in VYM (95.0%).
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.
You are not choosing between two funds in isolation.
Whichever of FBDC and VYM you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, FBDC or VYM?
FBDC has an expense ratio of 12.44% while VYM charges 0.04%. VYM is the cheaper option, by $1240 a year on a $10,000 investment.
Which performed better, FBDC or VYM?
Over the past year FBDC returned -6.82% vs +20.84% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (1 years), FBDC annualized -3.43% vs +21.85% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FBDC or VYM?
FBDC has been the more volatile fund at 16.7% annualized versus 8.6% for VYM. Worst drawdown: FBDC -20.6% vs VYM -6.7%.
Should I hold both FBDC and VYM?
FBDC and VYM have a monthly-return correlation of 0.01, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, FBDC or VYM?
FBDC yields 13.39% while VYM yields 2.24%, so FBDC currently pays the higher dividend yield.
Is VYM better than FBDC?
VYM has a lower expense ratio. VYM led over 1Y and the full window. VYM is less concentrated, with 25.9% of the fund in its ten largest positions against 77.2%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.