FEDM vs VYM
FlexShares ESG & Climate Developed Markets ex-US Core Index Fund 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 558 holdings.
Side-by-Side Comparison
| Metric | FEDM | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.12% | 0.04% | |
| AUM | $78M | $79.0B | |
| Dividend Yield | 2.98% | 2.86% | |
| Holdings | 261 | 568 | |
| YTD Return | +12.50% | +16.10% | |
| 1Y Return | +23.26% | +25.99% | |
| 3Y Return (annualized) | +16.41% | +18.29% | |
| 5Y Return (annualized) | +8.72% | +12.35% | |
| Volatility (annualized) | 15.7% | 14.6% | |
| Max Drawdown | -29.4% | -58.8% | |
| Fund Family | Flexshares Trust | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Sep 20, 2021 | Nov 10, 2006 |
FEDM vs VYM Performance
FlexShares ESG & Climate Developed Markets ex-US Core Index Fund (FEDM) is a ETF from Flexshares Trust and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year FEDM returned +23.26% while VYM returned +25.99%. Year to date, FEDM is up 12.50% versus a gain of 16.10% for VYM.
Over three years, FEDM compounded at +16.41% per year against +18.29% for VYM; over five years the annualized figures are +8.72% and +12.35% respectively. Across the full 5-year window we track, FEDM has the edge at +8.72% annualized vs +7.08%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FEDM has been the more volatile fund, with annualized monthly volatility of 15.7% 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 -29.4% for FEDM 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 0.82. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FEDM charges 0.12% per year while VYM charges 0.04%. On a $10,000 position that is $12 vs $4 annually, a gap of $8 per year that compounds over a long holding period. On income, FEDM currently yields 2.98% against 2.86% for VYM.
Holdings Overlap
FEDM and VYM share 1 holdings out of 779 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in FEDM | Weight in VYM | Difference |
|---|---|---|---|
| FERG | 0.08% | 0.22% | 0.14% |
Frequently Asked Questions
Which is cheaper, FEDM or VYM?
FEDM has an expense ratio of 0.12% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $8 per year of difference.
Which performed better, FEDM or VYM?
Over the past year FEDM returned +23.26% vs +25.99% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (5 years), FEDM annualized +8.72% vs +7.08% for VYM. Past performance does not guarantee future results.
Which is riskier, FEDM or VYM?
FEDM has been the more volatile fund at 15.7% annualized versus 14.6% for VYM. Worst drawdown: FEDM -29.4% vs VYM -58.8%.
Should I hold both FEDM and VYM?
FEDM and VYM have a monthly-return correlation of 0.82, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FEDM and VYM?
FEDM and VYM share 1 common holdings with a 0.1% weight overlap. Combined, they hold 779 unique securities.
Which pays a higher dividend, FEDM or VYM?
FEDM yields 2.98% while VYM yields 2.86%, so FEDM currently pays the higher dividend yield.
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