FCAL vs VYM
First Trust California Municipal High 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 | FCAL | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.49% | 0.04% | |
| AUM | $223M | $81.6B | |
| Dividend Yield | 3.43% | 2.24% | |
| Holdings | 281 | 616 | |
| YTD Return | +1.11% | +16.42% | |
| 1Y Return | +5.44% | +24.22% | |
| 3Y Return (annualized) | +3.17% | +19.03% | |
| 5Y Return (annualized) | +0.34% | +12.21% | |
| Volatility (annualized) | 5.7% | 14.6% | |
| Max Drawdown | -14.8% | -58.8% | |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Jun 21, 2017 | Nov 10, 2006 |
FCAL vs VYM Performance
First Trust California Municipal High income ETF (FCAL) 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 FCAL returned +5.44% while VYM returned +24.22%. Year to date, FCAL is up 1.11% versus a gain of 16.42% for VYM.
Over three years, FCAL compounded at +3.17% per year against +19.03% for VYM; over five years the annualized figures are +0.34% and +12.21% respectively. Across the full 9-year window we track, VYM has the edge at +7.10% annualized vs +1.39%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 5.7% for FCAL. 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 -14.8% for FCAL 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 0.38. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FCAL charges 0.49% per year while VYM charges 0.04%. On a $10,000 position that is $49 vs $4 annually, a gap of $45 per year that compounds over a long holding period. On income, FCAL currently yields 3.43% against 2.24% for VYM.
Holdings Overlap
FCAL and VYM share 0 holdings out of 766 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, FCAL or VYM?
FCAL has an expense ratio of 0.49% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $45 per year of difference.
Which performed better, FCAL or VYM?
Over the past year FCAL returned +5.44% vs +24.22% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (9 years), FCAL annualized +1.39% vs +7.10% for VYM. Past performance does not guarantee future results.
Which is riskier, FCAL or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 5.7% for FCAL. Worst drawdown: FCAL -14.8% vs VYM -58.8%.
Should I hold both FCAL and VYM?
FCAL and VYM have a monthly-return correlation of 0.38, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FCAL and VYM?
FCAL and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 766 unique securities.
Which pays a higher dividend, FCAL or VYM?
FCAL yields 3.43% while VYM yields 2.24%, so FCAL currently pays the higher dividend yield.
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