FDHY vs VYM
Fidelity Enhanced High Yield 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 558 holdings.
Side-by-Side Comparison
| Metric | FDHY | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.35% | 0.04% | |
| AUM | $536M | $79.0B | |
| Dividend Yield | 7.10% | 2.86% | |
| Holdings | 302 | 568 | |
| YTD Return | +3.25% | +16.10% | |
| 1Y Return | +6.88% | +25.99% | |
| 3Y Return (annualized) | +8.69% | +18.29% | |
| 5Y Return (annualized) | +3.96% | +12.35% | |
| Volatility (annualized) | 8.0% | 14.6% | |
| Max Drawdown | -20.3% | -58.8% | |
| Fund Family | Fidelity Investments (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jun 12, 2018 | Nov 10, 2006 |
FDHY vs VYM Performance
Fidelity Enhanced High Yield ETF (FDHY) is a ETF from Fidelity Investments (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year FDHY returned +6.88% while VYM returned +25.99%. Year to date, FDHY is up 3.25% versus a gain of 16.10% for VYM.
Over three years, FDHY compounded at +8.69% per year against +18.29% for VYM; over five years the annualized figures are +3.96% and +12.35% respectively. Across the full 8-year window we track, VYM has the edge at +7.08% annualized vs +4.15%. 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 8.0% for FDHY. 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 -20.3% for FDHY 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 0.75. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FDHY charges 0.35% per year while VYM charges 0.04%. On a $10,000 position that is $35 vs $4 annually, a gap of $31 per year that compounds over a long holding period. On income, FDHY currently yields 7.10% against 2.86% for VYM.
Holdings Overlap
FDHY and VYM share 0 holdings out of 562 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, FDHY or VYM?
FDHY has an expense ratio of 0.35% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $31 per year of difference.
Which performed better, FDHY or VYM?
Over the past year FDHY returned +6.88% vs +25.99% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (8 years), FDHY annualized +4.15% vs +7.08% for VYM. Past performance does not guarantee future results.
Which is riskier, FDHY or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 8.0% for FDHY. Worst drawdown: FDHY -20.3% vs VYM -58.8%.
Should I hold both FDHY and VYM?
FDHY and VYM have a monthly-return correlation of 0.75, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FDHY and VYM?
FDHY and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 562 unique securities.
Which pays a higher dividend, FDHY or VYM?
FDHY yields 7.10% while VYM yields 2.86%, so FDHY currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.