FEP vs VYM
First Trust Europe AlphaDEX Fund vs Vanguard High Dividend Yield ETF
Which is better, FEP or VYM?
Mid Cap Blend against Large Cap Value.
VYM has a lower expense ratio. FEP led over 1Y and 3Y, VYM over 5Y and the full window. FEP is less concentrated, with 9.8% 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 | FEP | VYM |
|---|---|---|
| Expense Ratio | 0.80% | 0.04%Best |
| AUM | $534M | $81.6B |
| Dividend Yield | 2.65% | 2.22% |
| Holdings | 414 | 613 |
| YTD Return | +8.77% | +10.23%Best |
| 1Y Return | +18.23%Best | +14.28% |
| 3Y Return (annualized) | +25.01%Best | +17.50% |
| 5Y Return (annualized) | +9.81% | +11.60%Best |
| Volatility (annualized) | 19.1% | 13.0%Best |
| Max Drawdown | -48.6% | -35.7%Best |
| $10,000 over 5 years | $15,966 | $17,311Best |
| Top 10 Weight | 9.8%Best | 26.1% |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Mid Cap Blend | Large Cap Value |
| Inception | Apr 18, 2011 | Nov 10, 2006 |
Volatility and max drawdown are measured over the window both funds cover: Apr 26, 2011 to Sep 23, 2026 (15.4 years).
FEP 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 15.4 years both funds cover.
FEP vs VYM Performance
First Trust Europe AlphaDEX Fund (FEP) 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 FEP returned +18.23% while VYM returned +14.28%. Year to date, FEP is up 8.77% versus a gain of 10.23% for VYM.
Over three years, FEP compounded at +25.01% per year against +17.50% for VYM; over five years the annualized figures are +9.81% and +11.60% respectively. Across the full 15-year window we track, VYM has the edge at +9.52% annualized vs +5.50%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FEP has been the more volatile fund, with annualized monthly volatility of 19.1% compared with 13.0% 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 -48.6% for FEP 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 0.78. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FEP 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, FEP currently yields 2.65% against 2.22% for VYM.
Holdings Overlap
0.3% of FEP's money is in holdings VYM also owns.
We cannot see either book well enough to say how much of this pair is duplicated.
1 positions in common, counted across the 199 positions we hold weights for in FEP and 557 in VYM, against full books of 414 and 613.
What only one of them owns
Our book lists 527 positions for VYM that do not appear in our book for FEP (97.0% of the fund), and 1 for FEP that do not appear in VYM (0.7%).
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 FEP | Weight in VYM | Difference |
|---|---|---|---|
| ALVAllianz Ag | 0.35% | 0.04% | 0.31% |
You are not choosing between two funds in isolation.
Whichever of FEP 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, FEP or VYM?
FEP 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, FEP or VYM?
Over the past year FEP returned +18.23% vs +14.28% for VYM, so FEP leads on 1-year performance. Over the longest common window we track (15 years), FEP annualized +5.50% vs +9.52% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FEP or VYM?
FEP has been the more volatile fund at 19.1% annualized versus 13.0% for VYM. Worst drawdown: FEP -48.6% vs VYM -35.7%.
Should I hold both FEP and VYM?
FEP and VYM have a monthly-return correlation of 0.78, 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, FEP or VYM?
FEP yields 2.65% while VYM yields 2.22%, so FEP currently pays the higher dividend yield.
Is VYM better than FEP?
VYM has a lower expense ratio. FEP led over 1Y and 3Y, VYM over 5Y and the full window. FEP is less concentrated, with 9.8% 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.