FDEM vs VYM
Fidelity Emerging Markets Multifactor 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 616 holdings.
Side-by-Side Comparison
| Metric | FDEM | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.25% | 0.04% | |
| AUM | $581M | $81.6B | |
| Dividend Yield | 3.00% | 2.24% | |
| Holdings | 208 | 616 | |
| YTD Return | +11.48% | +15.75% | |
| 1Y Return | +22.28% | +23.85% | |
| 3Y Return (annualized) | +20.29% | +19.14% | |
| 5Y Return (annualized) | +9.69% | +12.45% | |
| Volatility (annualized) | 15.6% | 14.6% | |
| Max Drawdown | -33.6% | -58.8% | |
| Fund Family | Fidelity Investments (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Feb 26, 2019 | Nov 10, 2006 |
FDEM vs VYM Performance
Fidelity Emerging Markets Multifactor ETF (FDEM) is a ETF from Fidelity Investments (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year FDEM returned +22.28% while VYM returned +23.85%. Year to date, FDEM is up 11.48% versus a gain of 15.75% for VYM.
Over three years, FDEM compounded at +20.29% per year against +19.14% for VYM; over five years the annualized figures are +9.69% and +12.45% respectively. Across the full 8-year window we track, FDEM has the edge at +7.94% annualized vs +7.06%. 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 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 -33.6% for FDEM 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 0.71. 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
FDEM and VYM share 0 holdings out of 802 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
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. On a $10,000 investment, that is $21 per year of difference.
Which performed better, FDEM or VYM?
Over the past year FDEM returned +22.28% vs +23.85% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (8 years), FDEM annualized +7.94% vs +7.06% for VYM. Past performance does not guarantee future results.
Which is riskier, FDEM or VYM?
FDEM has been the more volatile fund at 15.6% annualized versus 14.6% for VYM. Worst drawdown: FDEM -33.6% vs VYM -58.8%.
Should I hold both FDEM and VYM?
FDEM and VYM have a monthly-return correlation of 0.71, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FDEM and VYM?
FDEM and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 802 unique securities.
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.
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