FCEF vs VYM
First Trust Income Opportunities ETF vs Vanguard High Dividend Yield ETF
Which is better, FCEF or VYM?
Debt-oriented balanced against Large Cap Value.
VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window. VYM is less concentrated, with 26.1% of the fund in its ten largest positions against 30.8%.
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 | FCEF | VYM |
|---|---|---|
| Expense Ratio | 3.69% | 0.04%Best |
| AUM | $83M | $81.6B |
| Dividend Yield | 6.23% | 2.22% |
| Holdings | 122 | 613 |
| YTD Return | +4.32% | +9.40%Best |
| 1Y Return | +7.14% | +13.45%Best |
| 3Y Return (annualized) | +15.41% | +18.32%Best |
| 5Y Return (annualized) | +5.50% | +11.37%Best |
| Volatility (annualized) | 14.7% | 14.3%Best |
| Max Drawdown | -45.1% | -35.7%Best |
| $10,000 over 5 years | $13,070 | $17,133Best |
| Top 10 Weight | 30.8% | 26.1%Best |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) |
| Category | Allocation/Balanced | Equity |
| Style | Debt-oriented balanced | Large Cap Value |
| Inception | Sep 27, 2016 | Nov 10, 2006 |
Volatility and max drawdown are measured over the window both funds cover: Sep 29, 2016 to Sep 29, 2026 (10 years).
FCEF 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 10 years both funds cover.
FCEF vs VYM Performance
First Trust Income Opportunities ETF (FCEF) 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 FCEF returned +7.14% while VYM returned +13.45%. Year to date, FCEF is up 4.32% versus a gain of 9.40% for VYM.
Over three years, FCEF compounded at +15.41% per year against +18.32% for VYM; over five years the annualized figures are +5.50% and +11.37% respectively. Across the full 10-year window we track, VYM has the edge at +9.86% annualized vs +5.21%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FCEF has been the more volatile fund, with annualized monthly volatility of 14.7% compared with 14.3% 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 -45.1% for FCEF and -35.7% 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 0.89. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FCEF charges 3.69% per year while VYM charges 0.04%. On a $10,000 position that is $369 vs $4 annually, a gap of $365 per year that compounds over a long holding period. On income, FCEF currently yields 6.23% against 2.22% for VYM.
Holdings Overlap
We hold position weights for 61 holdings in FCEF and 557 in VYM, totalling 96.4% and 99.2% 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 61 positions we hold weights for in FCEF and 557 in VYM, against full books of 122 and 613.
What only one of them owns
Our book lists 528 positions for VYM that do not appear in our book for FCEF (97.1% of the fund), and 59 for FCEF that do not appear in VYM (91.5%).
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 FCEF 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, FCEF or VYM?
FCEF has an expense ratio of 3.69% while VYM charges 0.04%. VYM is the cheaper option, by $365 a year on a $10,000 investment.
Which performed better, FCEF or VYM?
Over the past year FCEF returned +7.14% vs +13.45% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (10 years), FCEF annualized +5.21% vs +9.86% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FCEF or VYM?
FCEF has been the more volatile fund at 14.7% annualized versus 14.3% for VYM. Worst drawdown: FCEF -45.1% vs VYM -35.7%.
Should I hold both FCEF and VYM?
FCEF and VYM have a monthly-return correlation of 0.89, 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, FCEF or VYM?
FCEF yields 6.23% while VYM yields 2.22%, so FCEF currently pays the higher dividend yield.
Is VYM better than FCEF?
VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window. VYM is less concentrated, with 26.1% of the fund in its ten largest positions against 30.8%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.