FDV vs VYM
Federated Hermes US Strategic Dividend ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 616 holdings.
Side-by-Side Comparison
| Metric | FDV | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.50% | 0.04% | |
| AUM | $907M | $81.6B | |
| Dividend Yield | 2.86% | 2.24% | |
| Holdings | 52 | 616 | |
| YTD Return | +19.05% | +14.84% | |
| 1Y Return | +20.61% | +20.88% | |
| 3Y Return (annualized) | +16.02% | +18.34% | |
| 5Y Return (annualized) | - | +12.04% | |
| Volatility (annualized) | 12.2% | 14.6% | |
| Max Drawdown | -16.7% | -58.8% | |
| Fund Family | Federated Hermes Funds | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Nov 15, 2022 | Nov 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 +20.61% while VYM returned +20.88%. Year to date, FDV is up 19.05% versus a gain of 14.84% for VYM.
Over three years, FDV compounded at +16.02% per year against +18.34% for VYM. Across the full 4-year window we track, FDV has the edge at +11.54% annualized vs +7.01%. 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 2.86% against 2.24% for VYM.
Holdings Overlap
FDV and VYM share 44 holdings out of 609 unique holdings combined, representing a 19.7% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
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 +20.61% vs +20.88% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (4 years), FDV annualized +11.54% vs +7.01% 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 44 common holdings with a 19.7% weight overlap. Combined, they hold 609 unique securities.
Which pays a higher dividend, FDV or VYM?
FDV yields 2.86% while VYM yields 2.24%, so FDV currently pays the higher dividend yield.
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