FDV vs VYM
Federated Hermes US Strategic Dividend ETF vs Vanguard High Dividend Yield ETF
Which is better, FDV or VYM?
Each has led over a different period.
VYM has a lower expense ratio. FDV led over 1Y, VYM over 3Y and the full window. The two have moved almost in lockstep, correlation 0.90. VYM is less concentrated, with 26.1% of the fund in its ten largest positions against 33.5%.
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 | FDV | VYM |
|---|---|---|
| Expense Ratio | 0.50% | 0.04%Best |
| AUM | $909M | $81.6B |
| Dividend Yield | 2.70% | 2.22% |
| Holdings | 50 | 613 |
| YTD Return | +15.49%Best | +11.35% |
| 1Y Return | +17.62%Best | +15.34% |
| 3Y Return (annualized) | +15.49% | +17.22%Best |
| 5Y Return (annualized) | - | +12.30% |
| Volatility (annualized) | 12.2% | 11.5%Best |
| Max Drawdown | -16.7% | -14.5%Best |
| $10,000 over 3.8 years | $14,604 | $16,121Best |
| Top 10 Weight | 33.5% | 26.1%Best |
| Fund Family | Federated Hermes Funds | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Value | Large Cap Value |
| Inception | Nov 15, 2022 | Nov 10, 2006 |
Volatility and max drawdown, and the $10,000 over 3.8 years row, are measured over the window both funds cover: Nov 16, 2022 to Sep 18, 2026 (3.8 years).
FDV 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 3.8 years both funds cover.
FDV vs VYM Performance
Federated Hermes US Strategic Dividend ETF (FDV) is an ETF from Federated Hermes Funds and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year FDV returned +17.62% while VYM returned +15.34%. Year to date, FDV is up 15.49% versus a gain of 11.35% for VYM.
Over three years, FDV compounded at +15.49% per year against +17.22% for VYM. Across the full 4-year window we track, VYM has the edge at +13.39% annualized vs +10.48%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FDV has been the more volatile fund, with annualized monthly volatility of 12.2% compared with 11.5% 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 -16.7% for FDV and -14.5% 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 0.90. 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 2.70% against 2.22% for VYM.
Holdings Overlap
88.4% of FDV's money is in holdings VYM also owns. 22.1% of VYM's money is in holdings FDV also owns.
Most of FDV is already inside VYM. Owning both mostly buys the same companies twice.
45 positions in common, counted across the 51 positions we hold weights for in FDV and 557 in VYM, against full books of 50 and 613.
What only one of them owns
Our book lists 484 positions for VYM that do not appear in our book for FDV (75.4% of the fund), and 5 for FDV that do not appear in VYM (9.1%).
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 FDV | Weight in VYM | Difference |
|---|---|---|---|
| CVXChevron Corp | 3.52% | 1.48% | 2.04% |
| PAYXPaychex, Inc. | 4.72% | 0.15% | 4.57% |
| ABBVAbbvie Inc. | 2.80% | 1.80% | 1.00% |
| PNCPnc Financial Services Group Inc. | 4.03% | 0.41% | 3.62% |
| USBUS Bancorp | 3.67% | 0.40% | 3.27% |
| PEPPepsico Inc. | 3.29% | 0.77% | 2.52% |
| AMGNAmgen Inc. | 3.11% | 0.78% | 2.33% |
| XOMExxonmobil Holdings Corp Common Stock Usd | 1.25% | 2.63% | 1.38% |
| PMPhilip Morris International Inc. | 2.13% | 1.21% | 0.92% |
| MDTMedtronic Plc Ordinary Shares | 2.78% | 0.44% | 2.34% |
88.4% of FDV is already inside VYM.
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, FDV or VYM?
FDV has an expense ratio of 0.50% while VYM charges 0.04%. VYM is the cheaper option, by $46 a year on a $10,000 investment.
Which performed better, FDV or VYM?
Over the past year FDV returned +17.62% vs +15.34% for VYM, so FDV leads on 1-year performance. Over the longest common window we track (4 years), FDV annualized +10.48% vs +13.39% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FDV or VYM?
FDV has been the more volatile fund at 12.2% annualized versus 11.5% for VYM. Worst drawdown: FDV -16.7% vs VYM -14.5%.
Should I hold both FDV and VYM?
FDV and VYM have a monthly-return correlation of 0.90, 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 FDV and VYM?
88.4% of FDV's money is in holdings VYM also owns. 22.1% of VYM's is in holdings FDV also owns. They hold 45 positions in common, counted across the 51 positions we hold weights for in FDV and 557 in VYM.
Which pays a higher dividend, FDV or VYM?
FDV yields 2.70% while VYM yields 2.22%, so FDV currently pays the higher dividend yield.
Is VYM better than FDV?
VYM has a lower expense ratio. FDV led over 1Y, VYM over 3Y and the full window. The two have moved almost in lockstep, correlation 0.90. VYM is less concentrated, with 26.1% of the fund in its ten largest positions against 33.5%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.