FDRR vs VYM
Fidelity Dividend ETF for Rising Rates vs Vanguard High Dividend Yield ETF
Which is better, FDRR or VYM?
Nearly the same fund. VYM costs less.
VYM has a lower expense ratio. FDRR led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.95. VYM is less concentrated, with 25.9% of the fund in its ten largest positions against 42.8%.
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 | FDRR | VYM |
|---|---|---|
| Expense Ratio | 0.15% | 0.04%Best |
| AUM | $737M | $81.6B |
| Dividend Yield | 2.08% | 2.24% |
| Holdings | 116 | 613 |
| YTD Return | +15.90%Best | +14.82% |
| 1Y Return | +25.23%Best | +20.84% |
| 3Y Return (annualized) | +21.94%Best | +18.64% |
| 5Y Return (annualized) | +13.25%Best | +12.28% |
| Volatility (annualized) | 15.2% | 14.3%Best |
| Max Drawdown | -37.6% | -35.7%Best |
| $10,000 over 5 years | $18,629Best | $17,845 |
| Top 10 Weight | 42.8% | 25.9%Best |
| Fund Family | Fidelity Investments (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Value | Large Cap Value |
| Inception | Sep 12, 2016 | Nov 10, 2006 |
Volatility and max drawdown are measured over the window both funds cover: Sep 15, 2016 to Sep 4, 2026 (10 years).
FDRR 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.
FDRR vs VYM Performance
Fidelity Dividend ETF for Rising Rates (FDRR) is an ETF from Fidelity Investments (US) and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year FDRR returned +25.23% while VYM returned +20.84%. Year to date, FDRR is up 15.90% versus a gain of 14.82% for VYM.
Over three years, FDRR compounded at +21.94% per year against +18.64% for VYM; over five years the annualized figures are +13.25% and +12.28% respectively. Across the full 10-year window we track, FDRR has the edge at +12.42% annualized vs +10.45%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FDRR has been the more volatile fund, with annualized monthly volatility of 15.2% compared with 14.3% 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 -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 0.95. 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 2.08% against 2.24% for VYM.
Holdings Overlap
52.8% of FDRR's money is in holdings VYM also owns. 53.3% of VYM's money is in holdings FDRR also owns.
The two portfolios partly overlap.
72 positions in common, counted across the 111 positions we hold weights for in FDRR and 603 in VYM, against full books of 116 and 613.
What only one of them owns
Our book lists 498 positions for VYM that do not appear in our book for FDRR (44.3% of the fund), and 29 for FDRR that do not appear in VYM (42.9%).
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 FDRR | Weight in VYM | Difference |
|---|---|---|---|
| AVGOBroadcom Inc | 3.89% | 7.29% | 3.40% |
| JPMJpmorgan Chase | 2.05% | 3.38% | 1.33% |
| JNJJohnson & Johnson - Common | 1.52% | 2.54% | 1.02% |
| CSCOCisco Systems Inc. - Ordinary Shares | 1.97% | 1.93% | 0.04% |
| DELLDell Technologies Inc | 3.31% | 0.54% | 2.77% |
| XOMExxon Mobil Corp. | 1.08% | 2.36% | 1.28% |
| CATCaterpillar, Inc. | 1.15% | 2.01% | 0.86% |
| ABBVAbbvie Inc. | 1.29% | 1.85% | 0.56% |
| UNHUnitedhealth Group Incorporated | 1.41% | 1.56% | 0.15% |
| BACBank Of America Corp. | 1.33% | 1.56% | 0.23% |
53.3% of VYM is already inside FDRR.
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, FDRR or VYM?
FDRR 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, FDRR or VYM?
Over the past year FDRR returned +25.23% vs +20.84% for VYM, so FDRR leads on 1-year performance. Over the longest common window we track (10 years), FDRR annualized +12.42% vs +10.45% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FDRR or VYM?
FDRR has been the more volatile fund at 15.2% annualized versus 14.3% for VYM. Worst drawdown: FDRR -37.6% vs VYM -35.7%.
Should I hold both FDRR and VYM?
FDRR and VYM have a monthly-return correlation of 0.95, 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 FDRR and VYM?
53.3% of VYM's money is in holdings FDRR also owns. 53.3% of VYM's is in holdings FDRR also owns. They hold 72 positions in common, counted across the 111 positions we hold weights for in FDRR and 603 in VYM.
Which pays a higher dividend, FDRR or VYM?
FDRR yields 2.08% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.
Is VYM better than FDRR?
VYM has a lower expense ratio. FDRR led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.95. VYM is less concentrated, with 25.9% of the fund in its ten largest positions against 42.8%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.