FDND vs VYM

Quick Verdict

VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 568 holdings.

Lower Fees: VYMHigher Returns: VYMMore Diversified: VYM

Side-by-Side Comparison

MetricFDNDVYMWinner
Expense Ratio0.75%0.04%
AUM$9M$79.0B
Dividend Yield7.92%2.86%
Holdings43568
YTD Return+6.46%+16.78%
1Y Return+3.11%+24.43%
3Y Return (annualized)-+18.60%
5Y Return (annualized)-+12.30%
Volatility (annualized)18.6%14.6%
Max Drawdown-24.1%-58.8%
Fund FamilyFirst Trust Portfolios (US)Vanguard (US)
CategoryEquityEquity
InceptionMar 20, 2024Nov 10, 2006

FDND vs VYM Performance

FT Vest Dow Jones Internet & Target Income ETF (FDND) is a ETF from First Trust Portfolios (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year FDND returned +3.11% while VYM returned +24.43%. Year to date, FDND is up 6.46% versus a gain of 16.78% for VYM.

Risk: Volatility and Drawdowns

FDND has been the more volatile fund, with annualized monthly volatility of 18.6% 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 -24.1% for FDND 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 0.38. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

FDND charges 0.75% per year while VYM charges 0.04%. On a $10,000 position that is $75 vs $4 annually, a gap of $71 per year that compounds over a long holding period. On income, FDND currently yields 7.92% against 2.86% for VYM.

Holdings Overlap

1.6%overlap

FDND and VYM share 2 holdings out of 597 unique holdings combined, representing a 1.6% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in FDNDWeight in VYMDifference
CSCO8.45%1.39%7.06%
EBAY2.03%0.18%1.85%

Frequently Asked Questions

Which is cheaper, FDND or VYM?

FDND has an expense ratio of 0.75% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $71 per year of difference.

Which performed better, FDND or VYM?

Over the past year FDND returned +3.11% vs +24.43% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (2 years), FDND annualized +12.44% vs +7.11% for VYM. Past performance does not guarantee future results.

Which is riskier, FDND or VYM?

FDND has been the more volatile fund at 18.6% annualized versus 14.6% for VYM. Worst drawdown: FDND -24.1% vs VYM -58.8%.

Should I hold both FDND and VYM?

FDND and VYM have a monthly-return correlation of 0.38, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between FDND and VYM?

FDND and VYM share 2 common holdings with a 1.6% weight overlap. Combined, they hold 597 unique securities.

Which pays a higher dividend, FDND or VYM?

FDND yields 7.92% while VYM yields 2.86%, so FDND currently pays the higher dividend yield.

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