FESM vs VYM
Fidelity Enhanced Small Cap Core ETF vs Vanguard High Dividend Yield ETF
Which is better, FESM or VYM?
Small Cap Blend against Large Cap Value.
VYM has a lower expense ratio. FESM led over 1Y and the full window. FESM is less concentrated, with 6.7% 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 | FESM | VYM |
|---|---|---|
| Expense Ratio | 0.28% | 0.04%Best |
| AUM | $6.0B | $81.6B |
| Dividend Yield | 0.72% | 2.22% |
| Holdings | 789 | 613 |
| YTD Return | +21.51%Best | +10.96% |
| 1Y Return | +25.37%Best | +15.42% |
| 3Y Return (annualized) | - | +17.78% |
| 5Y Return (annualized) | - | +12.05% |
| Volatility (annualized) | 19.7% | 10.5%Best |
| Max Drawdown | -26.9% | -14.5%Best |
| $10,000 over 2.8 years | $18,649Best | $16,126 |
| Top 10 Weight | 6.7%Best | 26.1% |
| Fund Family | Fidelity Investments (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Small Cap Blend | Large Cap Value |
| Inception | Nov 20, 2023 | Nov 10, 2006 |
Volatility and max drawdown, and the $10,000 over 2.8 years row, are measured over the window both funds cover: Nov 20, 2023 to Sep 22, 2026 (2.8 years).
FESM 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 2.8 years both funds cover.
FESM vs VYM Performance
Fidelity Enhanced Small Cap Core ETF (FESM) is an ETF from Fidelity Investments (US) and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year FESM returned +25.37% while VYM returned +15.42%. Year to date, FESM is up 21.51% versus a gain of 10.96% for VYM.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FESM has been the more volatile fund, with annualized monthly volatility of 19.7% compared with 10.5% 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 -26.9% for FESM and -14.5% 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 0.81. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FESM charges 0.28% per year while VYM charges 0.04%. On a $10,000 position that is $28 vs $4 annually, a gap of $24 per year that compounds over a long holding period. On income, FESM currently yields 0.72% against 2.22% for VYM.
Holdings Overlap
14.7% of FESM's money is in holdings VYM also owns. 1.4% of VYM's money is in holdings FESM also owns.
FESM and VYM share little of their money.
87 positions in common, counted across the 845 positions we hold weights for in FESM and 557 in VYM, against full books of 789 and 613.
What only one of them owns
Our book lists 446 positions for VYM that do not appear in our book for FESM (95.6% of the fund), and 630 for FESM that do not appear in VYM (79.5%).
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 FESM | Weight in VYM | Difference |
|---|---|---|---|
| IBPInstalled Building Products | 0.70% | 0.02% | 0.68% |
| WSBCWesbanco, Inc. | 0.56% | 0.02% | 0.54% |
| SXTSensient Technologies Corp | 0.53% | 0.02% | 0.51% |
| KLICKulicke & Soffa Industries | 0.50% | 0.02% | 0.48% |
| EBCEastern Bankshares Inc | 0.49% | 0.02% | 0.47% |
| GBCIGlacier Bancorp Inc | 0.43% | 0.03% | 0.40% |
| YOUClear Secure Inc -Class A | 0.43% | 0.02% | 0.41% |
| HOMBHome Bancshares Inc/ar | 0.40% | 0.02% | 0.38% |
| SWXSouthwest Gas Holdings Inc Common Stock Usd 1 | 0.39% | 0.03% | 0.36% |
| BHEBenchmark Electronics Inc | 0.41% | 0.01% | 0.40% |
You are not choosing between two funds in isolation.
Whichever of FESM 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, FESM or VYM?
FESM has an expense ratio of 0.28% while VYM charges 0.04%. VYM is the cheaper option, by $24 a year on a $10,000 investment.
Which performed better, FESM or VYM?
Over the past year FESM returned +25.37% vs +15.42% for VYM, so FESM leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FESM or VYM?
FESM has been the more volatile fund at 19.7% annualized versus 10.5% for VYM. Worst drawdown: FESM -26.9% vs VYM -14.5%.
Should I hold both FESM and VYM?
FESM and VYM have a monthly-return correlation of 0.81, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between FESM and VYM?
14.7% of FESM's money is in holdings VYM also owns. 1.4% of VYM's is in holdings FESM also owns. They hold 87 positions in common, counted across the 845 positions we hold weights for in FESM and 557 in VYM.
Which pays a higher dividend, FESM or VYM?
FESM yields 0.72% while VYM yields 2.22%, so VYM currently pays the higher dividend yield.
Is VYM better than FESM?
VYM has a lower expense ratio. FESM led over 1Y and the full window. FESM is less concentrated, with 6.7% 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.