FDV vs VYM

Quick Verdict

VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.

Lower Fees: VYMHigher Returns: VYMMore Diversified: VYM

Side-by-Side Comparison

MetricFDVVYMWinner
Expense Ratio0.50%0.04%
AUM$850M$79.0B
Dividend Yield2.94%2.86%
Holdings52568
YTD Return+17.66%+15.80%
1Y Return+22.40%+26.12%
3Y Return (annualized)+14.64%+18.25%
5Y Return (annualized)-+12.51%
Volatility (annualized)12.2%14.6%
Max Drawdown-16.7%-58.8%
Fund FamilyFederated Hermes FundsVanguard (US)
CategoryEquityEquity
InceptionNov 15, 2022Nov 10, 2006

FDV vs VYM Performance

Federated Hermes US Strategic Dividend ETF (FDV) is a ETF from Federated Hermes Funds and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year FDV returned +22.40% while VYM returned +26.12%. Year to date, FDV is up 17.66% versus a gain of 15.80% for VYM.

Over three years, FDV compounded at +14.64% per year against +18.25% for VYM. Across the full 4-year window we track, FDV has the edge at +11.38% annualized vs +7.07%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 12.2% for FDV. 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 -16.7% for FDV 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 0.90. They move almost in lockstep, so holding both mostly duplicates the same exposure.

Fees and Cost Over Time

FDV charges 0.50% per year while VYM charges 0.04%. On a $10,000 position that is $50 vs $4 annually, a gap of $46 per year that compounds over a long holding period. On income, FDV currently yields 2.94% against 2.86% for VYM.

Holdings Overlap

22.6%overlap

FDV and VYM share 45 holdings out of 563 unique holdings combined, representing a 22.6% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in FDVWeight in VYMDifference
ABBV3.80%1.80%2.00%
CVX3.50%1.53%1.97%
PNC4.05%0.37%3.68%
XOMProProPro
PAYXProProPro
USBProProPro
AMGNProProPro
PMProProPro
TXNProProPro
PEPProProPro
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Frequently Asked Questions

Which is cheaper, FDV or VYM?

FDV has an expense ratio of 0.50% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $46 per year of difference.

Which performed better, FDV or VYM?

Over the past year FDV returned +22.40% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (4 years), FDV annualized +11.38% vs +7.07% for VYM. Past performance does not guarantee future results.

Which is riskier, FDV or VYM?

VYM has been the more volatile fund at 14.6% annualized versus 12.2% for FDV. Worst drawdown: FDV -16.7% vs VYM -58.8%.

Should I hold both FDV and VYM?

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

FDV and VYM share 45 common holdings with a 22.6% weight overlap. Combined, they hold 563 unique securities.

Which pays a higher dividend, FDV or VYM?

FDV yields 2.94% while VYM yields 2.86%, so FDV currently pays the higher dividend yield.

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