FEP vs VYM
First Trust Europe 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 | FEP | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.80% | 0.04% | |
| AUM | $534M | $81.6B | |
| Dividend Yield | 2.72% | 2.24% | |
| Holdings | 209 | 616 | |
| YTD Return | +12.37% | +16.42% | |
| 1Y Return | +22.31% | +24.22% | |
| 3Y Return (annualized) | +25.04% | +19.03% | |
| 5Y Return (annualized) | +10.13% | +12.21% | |
| Volatility (annualized) | 19.1% | 14.6% | |
| Max Drawdown | -48.6% | -58.8% | |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Apr 18, 2011 | Nov 10, 2006 |
FEP vs VYM Performance
First Trust Europe AlphaDEX Fund (FEP) 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 FEP returned +22.31% while VYM returned +24.22%. Year to date, FEP is up 12.37% versus a gain of 16.42% for VYM.
Over three years, FEP compounded at +25.04% per year against +19.03% for VYM; over five years the annualized figures are +10.13% and +12.21% respectively. Across the full 15-year window we track, VYM has the edge at +7.10% annualized vs +5.76%. 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 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 -48.6% for FEP 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 0.78. 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 2.72% against 2.24% for VYM.
Holdings Overlap
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. On a $10,000 investment, that is $76 per year of difference.
Which performed better, FEP or VYM?
Over the past year FEP returned +22.31% vs +24.22% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (15 years), FEP annualized +5.76% vs +7.10% for VYM. Past performance does not guarantee future results.
Which is riskier, FEP or VYM?
FEP has been the more volatile fund at 19.1% annualized versus 14.6% for VYM. Worst drawdown: FEP -48.6% vs VYM -58.8%.
Should I hold both FEP and VYM?
FEP and VYM have a monthly-return correlation of 0.78, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FEP and VYM?
FEP and VYM share 2 common holdings with a 0.5% weight overlap. Combined, they hold 801 unique securities.
Which pays a higher dividend, FEP or VYM?
FEP yields 2.72% while VYM yields 2.24%, so FEP currently pays the higher dividend yield.
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