FEMS vs VYM
First Trust Emerging Markets Small Cap AlphaDEX Fund vs Vanguard High Dividend Yield ETF
Which is better, FEMS or VYM?
Small Cap Value against Large Cap Value.
VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window. FEMS is less concentrated, with 15.6% of the fund in its ten largest positions against 26.1%.
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 | FEMS | VYM |
|---|---|---|
| Expense Ratio | 0.80% | 0.04%Best |
| AUM | $238M | $81.6B |
| Dividend Yield | 4.09% | 2.22% |
| Holdings | 218 | 613 |
| YTD Return | +5.92% | +9.59%Best |
| 1Y Return | +3.83% | +13.66%Best |
| 3Y Return (annualized) | +8.55% | +17.87%Best |
| 5Y Return (annualized) | +5.28% | +11.51%Best |
| Volatility (annualized) | 19.3% | 13.1%Best |
| Max Drawdown | -52.3% | -35.7%Best |
| $10,000 over 5 years | $12,934 | $17,241Best |
| Top 10 Weight | 15.6%Best | 26.1% |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Small Cap Value | Large Cap Value |
| Inception | Feb 15, 2012 | Nov 10, 2006 |
Volatility and max drawdown are measured over the window both funds cover: Feb 17, 2012 to Sep 28, 2026 (14.6 years).
FEMS 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 14.6 years both funds cover.
FEMS vs VYM Performance
First Trust Emerging Markets Small Cap AlphaDEX Fund (FEMS) is an ETF from First Trust Portfolios (US) and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year FEMS returned +3.83% while VYM returned +13.66%. Year to date, FEMS is up 5.92% versus a gain of 9.59% for VYM.
Over three years, FEMS compounded at +8.55% per year against +17.87% for VYM; over five years the annualized figures are +5.28% and +11.51% respectively. Across the full 15-year window we track, VYM has the edge at +9.72% annualized vs +4.35%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FEMS has been the more volatile fund, with annualized monthly volatility of 19.3% compared with 13.1% 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 -52.3% for FEMS and -35.7% 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 0.65. They move together some of the time, and apart the rest.
Fees and Cost Over Time
FEMS 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, FEMS currently yields 4.09% against 2.22% for VYM.
Holdings Overlap
We hold position weights for 197 holdings in FEMS and 557 in VYM, totalling 96.4% and 99.2% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 197 positions we hold weights for in FEMS and 557 in VYM, against full books of 218 and 613.
What only one of them owns
Our book lists 528 positions for VYM that do not appear in our book for FEMS (97.1% of the fund), and 7 for FEMS that do not appear in VYM (4.3%).
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.
You are not choosing between two funds in isolation.
Whichever of FEMS and VYM you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, FEMS or VYM?
FEMS has an expense ratio of 0.80% while VYM charges 0.04%. VYM is the cheaper option, by $76 a year on a $10,000 investment.
Which performed better, FEMS or VYM?
Over the past year FEMS returned +3.83% vs +13.66% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (15 years), FEMS annualized +4.35% vs +9.72% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FEMS or VYM?
FEMS has been the more volatile fund at 19.3% annualized versus 13.1% for VYM. Worst drawdown: FEMS -52.3% vs VYM -35.7%.
Should I hold both FEMS and VYM?
FEMS and VYM have a monthly-return correlation of 0.65, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, FEMS or VYM?
FEMS yields 4.09% while VYM yields 2.22%, so FEMS currently pays the higher dividend yield.
Is VYM better than FEMS?
VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window. FEMS is less concentrated, with 15.6% of the fund in its ten largest positions against 26.1%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.