FDRR vs VYM
Fidelity Dividend ETF for Rising Rates vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. FDRR delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | FDRR | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.15% | 0.04% | |
| AUM | $709M | $79.0B | |
| Dividend Yield | 2.16% | 2.86% | |
| Holdings | 124 | 568 | |
| YTD Return | +14.60% | +16.16% | |
| 1Y Return | +26.77% | +26.05% | |
| 3Y Return (annualized) | +21.34% | +18.43% | |
| 5Y Return (annualized) | +12.87% | +12.21% | |
| Volatility (annualized) | 15.3% | 14.6% | |
| Max Drawdown | -37.6% | -58.8% | |
| Fund Family | Fidelity Investments (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Sep 12, 2016 | Nov 10, 2006 |
FDRR vs VYM Performance
Fidelity Dividend ETF for Rising Rates (FDRR) is a ETF from Fidelity Investments (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year FDRR returned +26.77% while VYM returned +26.05%. Year to date, FDRR is up 14.60% versus a gain of 16.16% for VYM.
Over three years, FDRR compounded at +21.34% per year against +18.43% for VYM; over five years the annualized figures are +12.87% and +12.21% respectively. Across the full 10-year window we track, FDRR has the edge at +12.38% annualized vs +7.09%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FDRR has been the more volatile fund, with annualized monthly volatility of 15.3% 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 -37.6% for FDRR 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 0.95. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
FDRR 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, FDRR currently yields 2.16% against 2.86% for VYM.
Holdings Overlap
FDRR and VYM share 69 holdings out of 601 unique holdings combined, representing a 38.9% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FDRR or VYM?
FDRR has an expense ratio of 0.15% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $11 per year of difference.
Which performed better, FDRR or VYM?
Over the past year FDRR returned +26.77% vs +26.05% for VYM, so FDRR leads on 1-year performance. Over the longest common window we track (10 years), FDRR annualized +12.38% vs +7.09% for VYM. Past performance does not guarantee future results.
Which is riskier, FDRR or VYM?
FDRR has been the more volatile fund at 15.3% annualized versus 14.6% for VYM. Worst drawdown: FDRR -37.6% vs VYM -58.8%.
Should I hold both FDRR and VYM?
FDRR and VYM have a monthly-return correlation of 0.95, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between FDRR and VYM?
FDRR and VYM share 69 common holdings with a 38.9% weight overlap. Combined, they hold 601 unique securities.
Which pays a higher dividend, FDRR or VYM?
FDRR yields 2.16% while VYM yields 2.86%, so VYM 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.