FDT vs VYM
First Trust Developed Markets Ex-US AlphaDEX Fund vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. FDT delivered stronger 1-year returns. VYM offers more diversification with 603 holdings.
Side-by-Side Comparison
| Metric | FDT | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.80% | 0.04% | |
| AUM | $1.3B | $81.6B | |
| Dividend Yield | 2.88% | 2.24% | |
| Holdings | 312 | 616 | |
| YTD Return | +20.22% | +16.42% | |
| 1Y Return | +34.44% | +24.22% | |
| 3Y Return (annualized) | +27.26% | +19.03% | |
| 5Y Return (annualized) | +12.44% | +12.21% | |
| Volatility (annualized) | 17.1% | 14.6% | |
| Max Drawdown | -48.6% | -58.8% | |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Apr 18, 2011 | Nov 10, 2006 |
FDT vs VYM Performance
First Trust Developed Markets Ex-US AlphaDEX Fund (FDT) 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 FDT returned +34.44% while VYM returned +24.22%. Year to date, FDT is up 20.22% versus a gain of 16.42% for VYM.
Over three years, FDT compounded at +27.26% per year against +19.03% for VYM; over five years the annualized figures are +12.44% and +12.21% respectively. Across the full 15-year window we track, VYM has the edge at +7.10% annualized vs +5.64%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FDT has been the more volatile fund, with annualized monthly volatility of 17.1% 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 -48.6% for FDT 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 0.79. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FDT charges 0.80% per year while VYM charges 0.04%. On a $10,000 position that is $80 vs $4 annually, a gap of $76 per year that compounds over a long holding period. On income, FDT currently yields 2.88% against 2.24% for VYM.
Holdings Overlap
FDT and VYM share 1 holdings out of 897 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in FDT | Weight in VYM | Difference |
|---|---|---|---|
| KR | 0.00% | 0.13% | 0.13% |
Frequently Asked Questions
Which is cheaper, FDT or VYM?
FDT has an expense ratio of 0.80% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $76 per year of difference.
Which performed better, FDT or VYM?
Over the past year FDT returned +34.44% vs +24.22% for VYM, so FDT leads on 1-year performance. Over the longest common window we track (15 years), FDT annualized +5.64% vs +7.10% for VYM. Past performance does not guarantee future results.
Which is riskier, FDT or VYM?
FDT has been the more volatile fund at 17.1% annualized versus 14.6% for VYM. Worst drawdown: FDT -48.6% vs VYM -58.8%.
Should I hold both FDT and VYM?
FDT and VYM have a monthly-return correlation of 0.79, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FDT and VYM?
FDT and VYM share 1 common holdings with a 0.0% weight overlap. Combined, they hold 897 unique securities.
Which pays a higher dividend, FDT or VYM?
FDT yields 2.88% while VYM yields 2.24%, so FDT currently pays the higher dividend yield.
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