FEMS vs VYM
First Trust Emerging Markets Small Cap AlphaDEX 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 616 holdings.
Side-by-Side Comparison
| Metric | FEMS | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.80% | 0.04% | |
| AUM | $254M | $81.6B | |
| Dividend Yield | 4.43% | 2.24% | |
| Holdings | 218 | 616 | |
| YTD Return | +9.51% | +16.42% | |
| 1Y Return | +11.89% | +24.22% | |
| 3Y Return (annualized) | +11.07% | +19.03% | |
| 5Y Return (annualized) | +5.67% | +12.21% | |
| Volatility (annualized) | 19.2% | 14.6% | |
| Max Drawdown | -52.3% | -58.8% | |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Feb 15, 2012 | Nov 10, 2006 |
FEMS vs VYM Performance
First Trust Emerging Markets Small Cap AlphaDEX Fund (FEMS) is a ETF from First Trust Portfolios (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year FEMS returned +11.89% while VYM returned +24.22%. Year to date, FEMS is up 9.51% versus a gain of 16.42% for VYM.
Over three years, FEMS compounded at +11.07% per year against +19.03% for VYM; over five years the annualized figures are +5.67% and +12.21% respectively. Across the full 15-year window we track, VYM has the edge at +7.10% annualized vs +4.63%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FEMS has been the more volatile fund, with annualized monthly volatility of 19.2% 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 -52.3% for FEMS 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 0.65. They move independently enough that combining them can meaningfully diversify a portfolio.
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 4.43% against 2.24% for VYM.
Holdings Overlap
FEMS and VYM share 0 holdings out of 806 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
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. On a $10,000 investment, that is $76 per year of difference.
Which performed better, FEMS or VYM?
Over the past year FEMS returned +11.89% vs +24.22% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (15 years), FEMS annualized +4.63% vs +7.10% for VYM. Past performance does not guarantee future results.
Which is riskier, FEMS or VYM?
FEMS has been the more volatile fund at 19.2% annualized versus 14.6% for VYM. Worst drawdown: FEMS -52.3% vs VYM -58.8%.
Should I hold both FEMS and VYM?
FEMS and VYM have a monthly-return correlation of 0.65, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FEMS and VYM?
FEMS and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 806 unique securities.
Which pays a higher dividend, FEMS or VYM?
FEMS yields 4.43% while VYM yields 2.24%, so FEMS currently pays the higher dividend yield.
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