FCVT vs VYM
First Trust SSI Strategic Convertible Securities ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. FCVT delivered stronger 1-year returns. VYM offers more diversification with 616 holdings.
Side-by-Side Comparison
| Metric | FCVT | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.95% | 0.04% | |
| AUM | $104M | $81.6B | |
| Dividend Yield | 1.14% | 2.24% | |
| Holdings | 137 | 616 | |
| YTD Return | +19.53% | +15.84% | |
| 1Y Return | +31.22% | +23.95% | |
| 3Y Return (annualized) | +20.23% | +19.02% | |
| 5Y Return (annualized) | +6.79% | +12.19% | |
| Volatility (annualized) | 14.4% | 14.6% | |
| Max Drawdown | -32.3% | -58.8% | |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) | |
| Category | Convertible | Equity | |
| Inception | Nov 3, 2015 | Nov 10, 2006 |
FCVT vs VYM Performance
First Trust SSI Strategic Convertible Securities ETF (FCVT) 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 FCVT returned +31.22% while VYM returned +23.95%. Year to date, FCVT is up 19.53% versus a gain of 15.84% for VYM.
Over three years, FCVT compounded at +20.23% per year against +19.02% for VYM; over five years the annualized figures are +6.79% and +12.19% respectively. Across the full 11-year window we track, FCVT has the edge at +9.91% annualized vs +7.07%. 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 14.4% for FCVT. 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 -32.3% for FCVT 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 0.69. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FCVT charges 0.95% per year while VYM charges 0.04%. On a $10,000 position that is $95 vs $4 annually, a gap of $91 per year that compounds over a long holding period. On income, FCVT currently yields 1.14% against 2.24% for VYM.
Holdings Overlap
FCVT and VYM share 1 holdings out of 653 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in FCVT | Weight in VYM | Difference |
|---|---|---|---|
| ARES | 0.30% | 0.09% | 0.21% |
Frequently Asked Questions
Which is cheaper, FCVT or VYM?
FCVT has an expense ratio of 0.95% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $91 per year of difference.
Which performed better, FCVT or VYM?
Over the past year FCVT returned +31.22% vs +23.95% for VYM, so FCVT leads on 1-year performance. Over the longest common window we track (11 years), FCVT annualized +9.91% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, FCVT or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 14.4% for FCVT. Worst drawdown: FCVT -32.3% vs VYM -58.8%.
Should I hold both FCVT and VYM?
FCVT and VYM have a monthly-return correlation of 0.69, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FCVT and VYM?
FCVT and VYM share 1 common holdings with a 0.1% weight overlap. Combined, they hold 653 unique securities.
Which pays a higher dividend, FCVT or VYM?
FCVT yields 1.14% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.
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