FCFY vs VYM
First Trust S&P 500 Diversified Free Cash Flow 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 558 holdings.
Side-by-Side Comparison
| Metric | FCFY | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.60% | 0.04% | |
| AUM | $1M | $79.0B | |
| Dividend Yield | 1.42% | 2.86% | |
| Holdings | 102 | 568 | |
| YTD Return | +9.14% | +16.16% | |
| 1Y Return | +21.16% | +26.05% | |
| 3Y Return (annualized) | +16.56% | +18.43% | |
| 5Y Return (annualized) | - | +12.21% | |
| Volatility (annualized) | 15.2% | 14.6% | |
| Max Drawdown | -21.4% | -58.8% | |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Aug 23, 2023 | Nov 10, 2006 |
FCFY vs VYM Performance
First Trust S&P 500 Diversified Free Cash Flow ETF (FCFY) 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 FCFY returned +21.16% while VYM returned +26.05%. Year to date, FCFY is up 9.14% versus a gain of 16.16% for VYM.
Over three years, FCFY compounded at +16.56% per year against +18.43% for VYM. Across the full 3-year window we track, FCFY has the edge at +16.56% annualized vs +7.09%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FCFY has been the more volatile fund, with annualized monthly volatility of 15.2% 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 -21.4% for FCFY 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 0.83. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FCFY 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, FCFY currently yields 1.42% against 2.86% for VYM.
Holdings Overlap
FCFY and VYM share 49 holdings out of 608 unique holdings combined, representing a 9.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FCFY or VYM?
FCFY 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, FCFY or VYM?
Over the past year FCFY returned +21.16% vs +26.05% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (3 years), FCFY annualized +16.56% vs +7.09% for VYM. Past performance does not guarantee future results.
Which is riskier, FCFY or VYM?
FCFY has been the more volatile fund at 15.2% annualized versus 14.6% for VYM. Worst drawdown: FCFY -21.4% vs VYM -58.8%.
Should I hold both FCFY and VYM?
FCFY and VYM have a monthly-return correlation of 0.83, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FCFY and VYM?
FCFY and VYM share 49 common holdings with a 9.4% weight overlap. Combined, they hold 608 unique securities.
Which pays a higher dividend, FCFY or VYM?
FCFY yields 1.42% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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