FCG vs VYM
First Trust Natural Gas ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. FCG delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | FCG | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.57% | 0.04% | |
| AUM | $611M | $79.0B | |
| Dividend Yield | 2.24% | 2.86% | |
| Holdings | 40 | 568 | |
| YTD Return | +20.28% | +15.80% | |
| 1Y Return | +27.99% | +26.12% | |
| 3Y Return (annualized) | +5.55% | +18.25% | |
| 5Y Return (annualized) | +19.25% | +12.51% | |
| Volatility (annualized) | 40.9% | 14.6% | |
| Max Drawdown | -97.6% | -58.8% | |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | May 8, 2007 | Nov 10, 2006 |
FCG vs VYM Performance
First Trust Natural Gas ETF (FCG) 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 FCG returned +27.99% while VYM returned +26.12%. Year to date, FCG is up 20.28% versus a gain of 15.80% for VYM.
Over three years, FCG compounded at +5.55% per year against +18.25% for VYM; over five years the annualized figures are +19.25% and +12.51% respectively. Across the full 19-year window we track, VYM has the edge at +7.07% annualized vs -5.54%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FCG has been the more volatile fund, with annualized monthly volatility of 40.9% 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 -97.6% for FCG 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 0.57. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FCG charges 0.57% per year while VYM charges 0.04%. On a $10,000 position that is $57 vs $4 annually, a gap of $53 per year that compounds over a long holding period. On income, FCG currently yields 2.24% against 2.86% for VYM.
Holdings Overlap
FCG and VYM share 18 holdings out of 582 unique holdings combined, representing a 2.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FCG or VYM?
FCG has an expense ratio of 0.57% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $53 per year of difference.
Which performed better, FCG or VYM?
Over the past year FCG returned +27.99% vs +26.12% for VYM, so FCG leads on 1-year performance. Over the longest common window we track (19 years), FCG annualized -5.54% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, FCG or VYM?
FCG has been the more volatile fund at 40.9% annualized versus 14.6% for VYM. Worst drawdown: FCG -97.6% vs VYM -58.8%.
Should I hold both FCG and VYM?
FCG and VYM have a monthly-return correlation of 0.57, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FCG and VYM?
FCG and VYM share 18 common holdings with a 2.0% weight overlap. Combined, they hold 582 unique securities.
Which pays a higher dividend, FCG or VYM?
FCG yields 2.24% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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