FCT vs VYM
First Trust Senior Floating Rate Income Fund II vs Vanguard High Dividend Yield ETF
Which is better, FCT or VYM?
Bank Loan against Large Cap Value.
VYM has a lower expense ratio. VYM led over 1Y and the full window.
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 | FCT | VYM |
|---|---|---|
| Expense Ratio | 1.67% | 0.04%Best |
| AUM | $252M | $81.6B |
| Dividend Yield | 11.84% | 2.24% |
| Holdings | 221 | 613 |
| Volatility (annualized) | 15.5% | 14.6%Best |
| Max Drawdown | -71.1% | -58.8%Best |
| $10,000 over 19.7 years | $9,481 | $38,411Best |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) |
| Category | Fixed Income | Equity |
| Style | Bank Loan | Large Cap Value |
| Inception | May 25, 2004 | Nov 10, 2006 |
Not shown on this pair: YTD Return, 1Y Return, 3Y Return (annualized), 5Y Return (annualized), Top 10 Weight.
The two price series end 28 days apart, so a return over any period would be measuring two different stretches of market. Those rows are withheld. FCT has data through Aug 7, 2026 and VYM through Sep 4, 2026.
Volatility and max drawdown, and the $10,000 over 19.7 years row, are measured over the window both funds cover: Nov 16, 2006 to Aug 7, 2026 (19.7 years).
Risk: Volatility and Drawdowns
FCT has been the more volatile fund, with annualized monthly volatility of 15.5% 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 -71.1% for FCT and -58.8% 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 0.53. They move together some of the time, and apart the rest.
Fees and Cost Over Time
FCT charges 1.67% per year while VYM charges 0.04%. On a $10,000 position that is $167 vs $4 annually, a gap of $163 per year that compounds over a long holding period. On income, FCT currently yields 11.84% against 2.24% for VYM.
Holdings Overlap
We hold position weights for 106 holdings in FCT and 603 in VYM, totalling 53.8% and 99.5% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
The two holdings books were reported 123 days apart, FCT as of Feb 27, 2026 and VYM as of Jun 30, 2026, so some of the difference between them is the time between the two reports rather than the funds.
0 positions in common, counted across the 106 positions we hold weights for in FCT and 603 in VYM, against full books of 221 and 613.
You are not choosing between two funds in isolation.
Whichever of FCT 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, FCT or VYM?
FCT has an expense ratio of 1.67% while VYM charges 0.04%. VYM is the cheaper option, by $163 a year on a $10,000 investment.
Which is riskier, FCT or VYM?
FCT has been the more volatile fund at 15.5% annualized versus 14.6% for VYM. Worst drawdown: FCT -71.1% vs VYM -58.8%.
Should I hold both FCT and VYM?
FCT and VYM have a monthly-return correlation of 0.53, 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, FCT or VYM?
FCT yields 11.84% while VYM yields 2.24%, so FCT currently pays the higher dividend yield.
Is VYM better than FCT?
VYM has a lower expense ratio. VYM led over 1Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.