FBDC vs VYM
FT Confluence BDC & Specialty Finance Income ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 616 holdings.
Side-by-Side Comparison
| Metric | FBDC | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 13.69% | 0.04% | |
| AUM | $36M | $81.6B | |
| Dividend Yield | 13.39% | 2.24% | |
| Holdings | 22 | 616 | |
| YTD Return | -1.70% | +16.42% | |
| 1Y Return | -6.21% | +24.22% | |
| 3Y Return (annualized) | - | +19.03% | |
| 5Y Return (annualized) | - | +12.21% | |
| Volatility (annualized) | 16.9% | 14.6% | |
| Max Drawdown | -20.6% | -58.8% | |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | May 25, 2007 | Nov 10, 2006 |
FBDC vs VYM Performance
FT Confluence BDC & Specialty Finance Income ETF (FBDC) 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 FBDC returned -6.21% while VYM returned +24.22%. Year to date, FBDC is down 1.70% versus a gain of 16.42% for VYM.
Risk: Volatility and Drawdowns
FBDC has been the more volatile fund, with annualized monthly volatility of 16.9% 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 -20.6% for FBDC 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 0.07. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FBDC charges 13.69% per year while VYM charges 0.04%. On a $10,000 position that is $1369 vs $4 annually, a gap of $1365 per year that compounds over a long holding period. On income, FBDC currently yields 13.39% against 2.24% for VYM.
Holdings Overlap
FBDC and VYM share 0 holdings out of 623 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FBDC or VYM?
FBDC has an expense ratio of 13.69% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $1365 per year of difference.
Which performed better, FBDC or VYM?
Over the past year FBDC returned -6.21% vs +24.22% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (1 years), FBDC annualized -3.22% vs +7.10% for VYM. Past performance does not guarantee future results.
Which is riskier, FBDC or VYM?
FBDC has been the more volatile fund at 16.9% annualized versus 14.6% for VYM. Worst drawdown: FBDC -20.6% vs VYM -58.8%.
Should I hold both FBDC and VYM?
FBDC and VYM have a monthly-return correlation of 0.07, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FBDC and VYM?
FBDC and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 623 unique securities.
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.
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