FDG vs VYM
American Century Focused Dynamic Growth 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 | FDG | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.45% | 0.04% | |
| AUM | $428M | $81.6B | |
| Dividend Yield | 0.00% | 2.24% | |
| Holdings | 45 | 616 | |
| YTD Return | +3.35% | +15.75% | |
| 1Y Return | +12.80% | +23.85% | |
| 3Y Return (annualized) | +26.64% | +19.14% | |
| 5Y Return (annualized) | +9.85% | +12.45% | |
| Volatility (annualized) | 23.2% | 14.6% | |
| Max Drawdown | -43.7% | -58.8% | |
| Fund Family | American Century ETFs | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Mar 31, 2020 | Nov 10, 2006 |
FDG vs VYM Performance
American Century Focused Dynamic Growth ETF (FDG) is a ETF from American Century ETFs and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year FDG returned +12.80% while VYM returned +23.85%. Year to date, FDG is up 3.35% versus a gain of 15.75% for VYM.
Over three years, FDG compounded at +26.64% per year against +19.14% for VYM; over five years the annualized figures are +9.85% and +12.45% respectively. Across the full 6-year window we track, FDG has the edge at +21.18% annualized vs +7.06%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FDG has been the more volatile fund, with annualized monthly volatility of 23.2% 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 -43.7% for FDG 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 0.54. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FDG charges 0.45% per year while VYM charges 0.04%. On a $10,000 position that is $45 vs $4 annually, a gap of $41 per year that compounds over a long holding period. On income, FDG currently yields 0.00% against 2.24% for VYM.
Holdings Overlap
Frequently Asked Questions
Which is cheaper, FDG or VYM?
FDG has an expense ratio of 0.45% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $41 per year of difference.
Which performed better, FDG or VYM?
Over the past year FDG returned +12.80% vs +23.85% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (6 years), FDG annualized +21.18% vs +7.06% for VYM. Past performance does not guarantee future results.
Which is riskier, FDG or VYM?
FDG has been the more volatile fund at 23.2% annualized versus 14.6% for VYM. Worst drawdown: FDG -43.7% vs VYM -58.8%.
Should I hold both FDG and VYM?
FDG and VYM have a monthly-return correlation of 0.54, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FDG and VYM?
FDG and VYM share 2 common holdings with a 1.1% weight overlap. Combined, they hold 645 unique securities.
Which pays a higher dividend, FDG or VYM?
FDG yields 0.00% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.
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