FDLO vs VYM

FDLO vs VYM

Which is better, FDLO or VYM?

Large Cap Blend against Large Cap Value.

VYM has a lower expense ratio. FDLO led over the full window, VYM over 1Y, 3Y and 5Y. The two have moved almost in lockstep, correlation 0.90. VYM is less concentrated, with 26.1% of the fund in its ten largest positions against 35.9%.

Lower Fees: VYMHigher Returns: splitLess Concentrated: VYM

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

MetricFDLOVYM
Expense Ratio0.15%0.04%Best
AUM$1.4B$81.6B
Dividend Yield1.34%2.22%
Holdings129613
YTD Return+7.80%+11.35%Best
1Y Return+10.27%+15.34%Best
3Y Return (annualized)+14.02%+17.22%Best
5Y Return (annualized)+9.65%+12.30%Best
Volatility (annualized)13.4%Best14.3%
Max Drawdown-34.7%Best-35.7%
$10,000 over 5 years$15,851$17,861Best
Top 10 Weight35.9%26.1%Best
Fund FamilyFidelity Investments (US)Vanguard (US)
CategoryEquityEquity
StyleLarge Cap BlendLarge Cap Value
InceptionSep 12, 2016Nov 10, 2006

Volatility and max drawdown are measured over the window both funds cover: Sep 15, 2016 to Sep 18, 2026 (10 years).

FDLO 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 10 years both funds cover.

FDLO vs VYM Performance

Fidelity Low Volatility Factor ETF (FDLO) is an ETF from Fidelity Investments (US) and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year FDLO returned +10.27% while VYM returned +15.34%. Year to date, FDLO is up 7.80% versus a gain of 11.35% for VYM.

Over three years, FDLO compounded at +14.02% per year against +17.22% for VYM; over five years the annualized figures are +9.65% and +12.30% respectively. Across the full 10-year window we track, FDLO has the edge at +11.88% annualized vs +10.07%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VYM has been the more volatile fund, with annualized monthly volatility of 14.3% compared with 13.4% for FDLO. 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 -34.7% for FDLO 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 0.90. They move almost in lockstep, so holding both mostly duplicates the same exposure.

Fees and Cost Over Time

FDLO charges 0.15% per year while VYM charges 0.04%. On a $10,000 position that is $15 vs $4 annually, a gap of $11 per year that compounds over a long holding period. On income, FDLO currently yields 1.34% against 2.22% for VYM.

Holdings Overlap

FDLO already in VYM44.6%
VYM already in FDLO55.5%

44.6% of FDLO's money is in holdings VYM also owns. 55.5% of VYM's money is in holdings FDLO also owns.

The two portfolios partly overlap.

76 positions in common, counted across the 131 positions we hold weights for in FDLO and 557 in VYM, against full books of 129 and 613.

What only one of them owns

Our book lists 452 positions for VYM that do not appear in our book for FDLO (41.6% of the fund), and 53 for FDLO that do not appear in VYM (54.1%).

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.

Top Shared Holdings

StockWeight in FDLOWeight in VYMDifference
AVGOBroadcom Inc3.62%7.35%3.73%
JPMJpmorgan Chase1.75%3.82%2.07%
JNJJohnson & Johnson - Common1.25%2.51%1.26%
XOMExxon Mobil Corp.1.10%2.63%1.53%
CSCOCisco Systems Inc. - Ordinary Shares1.81%1.86%0.05%
ABBVAbbvie Inc.1.00%1.80%0.80%
BACBank Of America Corp.0.97%1.66%0.69%
TXNTexas Instruments, Inc.1.56%1.02%0.54%
IBMInternational Business Machines Corp.1.63%0.85%0.78%
UNHUnitedhealth Group Incorporated0.83%1.52%0.69%

55.5% of VYM is already inside FDLO.

You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.

FDLOVYM

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, FDLO or VYM?

FDLO has an expense ratio of 0.15% while VYM charges 0.04%. VYM is the cheaper option, by $11 a year on a $10,000 investment.

Which performed better, FDLO or VYM?

Over the past year FDLO returned +10.27% vs +15.34% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (10 years), FDLO annualized +11.88% vs +10.07% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, FDLO or VYM?

VYM has been the more volatile fund at 14.3% annualized versus 13.4% for FDLO. Worst drawdown: FDLO -34.7% vs VYM -35.7%.

Should I hold both FDLO and VYM?

FDLO and VYM have a monthly-return correlation of 0.90, 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 FDLO and VYM?

55.5% of VYM's money is in holdings FDLO also owns. 55.5% of VYM's is in holdings FDLO also owns. They hold 76 positions in common, counted across the 131 positions we hold weights for in FDLO and 557 in VYM.

Which pays a higher dividend, FDLO or VYM?

FDLO yields 1.34% while VYM yields 2.22%, so VYM currently pays the higher dividend yield.

Is VYM better than FDLO?

VYM has a lower expense ratio. FDLO led over the full window, VYM over 1Y, 3Y and 5Y. The two have moved almost in lockstep, correlation 0.90. VYM is less concentrated, with 26.1% of the fund in its ten largest positions against 35.9%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.