FEX vs VYM
First Trust Large Cap Core AlphaDEX Fund vs Vanguard High Dividend Yield ETF
Which is better, FEX or VYM?
Large Cap Blend against Large Cap Value.
VYM has a lower expense ratio. FEX led over 1Y, 3Y and the full window, VYM over 5Y. The two have moved almost in lockstep, correlation 0.93. FEX is less concentrated, with 5.4% of the fund in its ten largest positions against 25.9%.
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 | FEX | VYM |
|---|---|---|
| Expense Ratio | 0.57% | 0.04%Best |
| AUM | $1.6B | $81.6B |
| Dividend Yield | 0.95% | 2.24% |
| Holdings | 752 | 613 |
| YTD Return | +15.60%Best | +14.82% |
| 1Y Return | +21.31%Best | +20.84% |
| 3Y Return (annualized) | +19.33%Best | +18.64% |
| 5Y Return (annualized) | +10.55% | +12.28%Best |
| Volatility (annualized) | 17.1% | 14.7%Best |
| Max Drawdown | -59.7% | -58.8%Best |
| $10,000 over 5 years | $16,512 | $17,845Best |
| Top 10 Weight | 5.4%Best | 25.9% |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Value |
| Inception | May 8, 2007 | Nov 10, 2006 |
Volatility and max drawdown are measured over the window both funds cover: May 10, 2007 to Sep 4, 2026 (19.3 years).
FEX 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 19.3 years both funds cover.
FEX vs VYM Performance
First Trust Large Cap Core AlphaDEX Fund (FEX) 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 FEX returned +21.31% while VYM returned +20.84%. Year to date, FEX is up 15.60% versus a gain of 14.82% for VYM.
Over three years, FEX compounded at +19.33% per year against +18.64% for VYM; over five years the annualized figures are +10.55% and +12.28% respectively. Across the full 19-year window we track, FEX has the edge at +8.60% annualized vs +6.79%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FEX has been the more volatile fund, with annualized monthly volatility of 17.1% compared with 14.7% 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 -59.7% for FEX and -58.8% 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 0.93. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
FEX charges 0.57% per year while VYM charges 0.04%. On a $10,000 position that is $57 vs $4 annually, a gap of $53 per year that compounds over a long holding period. On income, FEX currently yields 0.95% against 2.24% for VYM.
Holdings Overlap
48.1% of FEX's money is in holdings VYM also owns. 73.2% of VYM's money is in holdings FEX also owns.
Most of VYM is already inside FEX. Owning both mostly buys the same companies twice.
174 positions in common, counted across the 369 positions we hold weights for in FEX and 603 in VYM, against full books of 752 and 613.
What only one of them owns
Our book lists 397 positions for VYM that do not appear in our book for FEX (24.5% of the fund), and 188 for FEX that do not appear in VYM (49.0%).
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 FEX | Weight in VYM | Difference |
|---|---|---|---|
| AVGOBroadcom Inc | 0.29% | 7.29% | 7.00% |
| JPMJpmorgan Chase | 0.10% | 3.38% | 3.28% |
| XOMExxon Mobil Corp. | 0.39% | 2.36% | 1.97% |
| JNJJohnson & Johnson - Common | 0.18% | 2.54% | 2.36% |
| CATCaterpillar, Inc. | 0.36% | 2.01% | 1.65% |
| CSCOCisco Systems Inc. - Ordinary Shares | 0.36% | 1.93% | 1.57% |
| ABBVAbbvie Inc. | 0.17% | 1.85% | 1.68% |
| BACBank of America Corp.: Financials | 0.29% | 1.56% | 1.27% |
| CVXChevron Corp | 0.40% | 1.28% | 0.88% |
| PGProcter & Gamble Company | 0.18% | 1.42% | 1.24% |
73.2% of VYM is already inside FEX.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, FEX or VYM?
FEX has an expense ratio of 0.57% while VYM charges 0.04%. VYM is the cheaper option, by $53 a year on a $10,000 investment.
Which performed better, FEX or VYM?
Over the past year FEX returned +21.31% vs +20.84% for VYM, so FEX leads on 1-year performance. Over the longest common window we track (19 years), FEX annualized +8.60% vs +6.79% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FEX or VYM?
FEX has been the more volatile fund at 17.1% annualized versus 14.7% for VYM. Worst drawdown: FEX -59.7% vs VYM -58.8%.
Should I hold both FEX and VYM?
FEX and VYM have a monthly-return correlation of 0.93, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
What is the holdings overlap between FEX and VYM?
73.2% of VYM's money is in holdings FEX also owns. 73.2% of VYM's is in holdings FEX also owns. They hold 174 positions in common, counted across the 369 positions we hold weights for in FEX and 603 in VYM.
Which pays a higher dividend, FEX or VYM?
FEX yields 0.95% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.
Is VYM better than FEX?
VYM has a lower expense ratio. FEX led over 1Y, 3Y and the full window, VYM over 5Y. The two have moved almost in lockstep, correlation 0.93. FEX is less concentrated, with 5.4% of the fund in its ten largest positions against 25.9%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.