FDL vs VYM
First Trust Morningstar Dividend Leaders Index Fund vs Vanguard High Dividend Yield ETF
Which is better, FDL or VYM?
Each has led over a different period.
VYM has a lower expense ratio. FDL led over 1Y, 3Y and 5Y, VYM over the full window. The two have moved almost in lockstep, correlation 0.91. VYM is less concentrated, with 25.9% of the fund in its ten largest positions against 48.3%.
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 | FDL | VYM |
|---|---|---|
| Expense Ratio | 0.43% | 0.04%Best |
| AUM | $8.1B | $81.6B |
| Dividend Yield | 3.59% | 2.24% |
| Holdings | 202 | 613 |
| YTD Return | +20.36%Best | +14.82% |
| 1Y Return | +24.66%Best | +20.84% |
| 3Y Return (annualized) | +20.00%Best | +18.64% |
| 5Y Return (annualized) | +14.01%Best | +12.28% |
| Volatility (annualized) | 16.3% | 14.5%Best |
| Max Drawdown | -68.6% | -58.8%Best |
| $10,000 over 5 years | $19,263Best | $17,845 |
| Top 10 Weight | 48.3% | 25.9%Best |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Value | Large Cap Value |
| Inception | Mar 9, 2006 | Nov 10, 2006 |
Volatility and max drawdown are measured over the window both funds cover: Nov 16, 2006 to Sep 4, 2026 (19.8 years).
FDL 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 19.8 years both funds cover.
FDL vs VYM Performance
First Trust Morningstar Dividend Leaders Index Fund (FDL) is an ETF from First Trust Portfolios (US) and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year FDL returned +24.66% while VYM returned +20.84%. Year to date, FDL is up 20.36% versus a gain of 14.82% for VYM.
Over three years, FDL compounded at +20.00% per year against +18.64% for VYM; over five years the annualized figures are +14.01% and +12.28% respectively. Across the full 20-year window we track, VYM has the edge at +7.00% annualized vs +5.50%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FDL has been the more volatile fund, with annualized monthly volatility of 16.3% compared with 14.5% 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 -68.6% for FDL and -58.8% 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 0.91. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
FDL charges 0.43% per year while VYM charges 0.04%. On a $10,000 position that is $43 vs $4 annually, a gap of $39 per year that compounds over a long holding period. On income, FDL currently yields 3.59% against 2.24% for VYM.
Holdings Overlap
96.4% of FDL's money is in holdings VYM also owns. 14.3% of VYM's money is in holdings FDL also owns.
Most of FDL is already inside VYM. Owning both mostly buys the same companies twice.
96 positions in common, counted across the 100 positions we hold weights for in FDL and 603 in VYM, against full books of 202 and 613.
What only one of them owns
Our book lists 475 positions for VYM that do not appear in our book for FDL (83.1% of the fund), and 4 for FDL that do not appear in VYM (3.4%).
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.
Top Shared Holdings
| Stock | Weight in FDL | Weight in VYM | Difference |
|---|---|---|---|
| CVXChevron Corp | 7.90% | 1.28% | 6.62% |
| VZVerizon Communic | 7.44% | 0.74% | 6.70% |
| PMPhilip Morris International Inc. | 5.99% | 1.17% | 4.82% |
| PFEPfizer Inc | 5.99% | 0.57% | 5.42% |
| PEPPepsico Inc. | 4.69% | 0.77% | 3.92% |
| MOAltria Group Inc | 4.17% | 0.50% | 3.67% |
| BMYBristol-Myers Squibb Co. | 3.58% | 0.49% | 3.09% |
| CMCSAComcast Corp-class A Cmcsa | 2.99% | 0.36% | 2.63% |
| UPSUnited Parcel Service, Inc | 2.99% | 0.33% | 2.66% |
| BXBlackstone Group Inc. Class A | 2.52% | 0.36% | 2.16% |
96.4% of FDL is already inside VYM.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, FDL or VYM?
FDL has an expense ratio of 0.43% while VYM charges 0.04%. VYM is the cheaper option, by $39 a year on a $10,000 investment.
Which performed better, FDL or VYM?
Over the past year FDL returned +24.66% vs +20.84% for VYM, so FDL leads on 1-year performance. Over the longest common window we track (20 years), FDL annualized +5.50% vs +7.00% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FDL or VYM?
FDL has been the more volatile fund at 16.3% annualized versus 14.5% for VYM. Worst drawdown: FDL -68.6% vs VYM -58.8%.
Should I hold both FDL and VYM?
FDL and VYM have a monthly-return correlation of 0.91, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
What is the holdings overlap between FDL and VYM?
96.4% of FDL's money is in holdings VYM also owns. 14.3% of VYM's is in holdings FDL also owns. They hold 96 positions in common, counted across the 100 positions we hold weights for in FDL and 603 in VYM.
Which pays a higher dividend, FDL or VYM?
FDL yields 3.59% while VYM yields 2.24%, so FDL currently pays the higher dividend yield.
Is VYM better than FDL?
VYM has a lower expense ratio. FDL led over 1Y, 3Y and 5Y, VYM over the full window. The two have moved almost in lockstep, correlation 0.91. VYM is less concentrated, with 25.9% of the fund in its ten largest positions against 48.3%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.