FDEM vs VYM
Fidelity Emerging Markets Multifactor ETF vs Vanguard High Dividend Yield ETF
Which is better, FDEM or VYM?
Large Cap Blend against Large Cap Value.
VYM has a lower expense ratio. FDEM led over 1Y and 3Y, VYM over 5Y and the full window. VYM is less concentrated, with 25.9% of the fund in its ten largest positions against 38.9%.
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 | FDEM | VYM |
|---|---|---|
| Expense Ratio | 0.25% | 0.04%Best |
| AUM | $581M | $81.6B |
| Dividend Yield | 3.00% | 2.24% |
| Holdings | 239 | 613 |
| YTD Return | +17.68%Best | +14.33% |
| 1Y Return | +26.77%Best | +20.01% |
| 3Y Return (annualized) | +21.27%Best | +18.43% |
| 5Y Return (annualized) | +10.12% | +12.16%Best |
| Volatility (annualized) | 15.6% | 15.2%Best |
| Max Drawdown | -33.6%Best | -35.7% |
| $10,000 over 5 years | $16,193 | $17,750Best |
| Top 10 Weight | 38.9% | 25.9%Best |
| Fund Family | Fidelity Investments (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Value |
| Inception | Feb 26, 2019 | Nov 10, 2006 |
Volatility and max drawdown are measured over the window both funds cover: Feb 28, 2019 to Sep 8, 2026 (7.5 years).
FDEM 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 7.5 years both funds cover.
FDEM vs VYM Performance
Fidelity Emerging Markets Multifactor ETF (FDEM) is an ETF from Fidelity Investments (US) and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year FDEM returned +26.77% while VYM returned +20.01%. Year to date, FDEM is up 17.68% versus a gain of 14.33% for VYM.
Over three years, FDEM compounded at +21.27% per year against +18.43% for VYM; over five years the annualized figures are +10.12% and +12.16% respectively. Across the full 8-year window we track, VYM has the edge at +11.27% annualized vs +8.66%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FDEM has been the more volatile fund, with annualized monthly volatility of 15.6% compared with 15.2% 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 -33.6% for FDEM 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 0.71. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FDEM charges 0.25% per year while VYM charges 0.04%. On a $10,000 position that is $25 vs $4 annually, a gap of $21 per year that compounds over a long holding period. On income, FDEM currently yields 3.00% against 2.24% for VYM.
Holdings Overlap
We hold position weights for 199 holdings in FDEM and 602 in VYM, totalling 99.4% and 99.5% 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 199 positions we hold weights for in FDEM and 602 in VYM, against full books of 239 and 613.
What only one of them owns
Our book lists 569 positions for VYM that do not appear in our book for FDEM (97.2% of the fund), and 5 for FDEM that do not appear in VYM (2.1%).
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 FDEM 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, FDEM or VYM?
FDEM has an expense ratio of 0.25% while VYM charges 0.04%. VYM is the cheaper option, by $21 a year on a $10,000 investment.
Which performed better, FDEM or VYM?
Over the past year FDEM returned +26.77% vs +20.01% for VYM, so FDEM leads on 1-year performance. Over the longest common window we track (8 years), FDEM annualized +8.66% vs +11.27% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FDEM or VYM?
FDEM has been the more volatile fund at 15.6% annualized versus 15.2% for VYM. Worst drawdown: FDEM -33.6% vs VYM -35.7%.
Should I hold both FDEM and VYM?
FDEM and VYM have a monthly-return correlation of 0.71, 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, FDEM or VYM?
FDEM yields 3.00% while VYM yields 2.24%, so FDEM currently pays the higher dividend yield.
Is VYM better than FDEM?
VYM has a lower expense ratio. FDEM led over 1Y and 3Y, VYM over 5Y and the full window. VYM is less concentrated, with 25.9% of the fund in its ten largest positions against 38.9%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.