FEX vs VYM
First Trust Large Cap Core AlphaDEX Fund vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. FEX delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | FEX | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.57% | 0.04% | |
| AUM | $1.6B | $79.0B | |
| Dividend Yield | 0.96% | 2.86% | |
| Holdings | 377 | 568 | |
| YTD Return | +17.38% | +16.16% | |
| 1Y Return | +27.15% | +26.05% | |
| 3Y Return (annualized) | +19.57% | +18.43% | |
| 5Y Return (annualized) | +10.97% | +12.21% | |
| Volatility (annualized) | 17.1% | 14.6% | |
| Max Drawdown | -59.7% | -58.8% | |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | May 8, 2007 | Nov 10, 2006 |
FEX vs VYM Performance
First Trust Large Cap Core AlphaDEX Fund (FEX) 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 FEX returned +27.15% while VYM returned +26.05%. Year to date, FEX is up 17.38% versus a gain of 16.16% for VYM.
Over three years, FEX compounded at +19.57% per year against +18.43% for VYM; over five years the annualized figures are +10.97% and +12.21% respectively. Across the full 19-year window we track, FEX has the edge at +8.72% annualized vs +7.09%. 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 14.6% 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 -59.7% for FEX 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 0.93. 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 0.96% against 2.86% for VYM.
Holdings Overlap
FEX and VYM share 172 holdings out of 755 unique holdings combined, representing a 31.9% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
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. On a $10,000 investment, that is $53 per year of difference.
Which performed better, FEX or VYM?
Over the past year FEX returned +27.15% vs +26.05% for VYM, so FEX leads on 1-year performance. Over the longest common window we track (19 years), FEX annualized +8.72% vs +7.09% for VYM. Past performance does not guarantee future results.
Which is riskier, FEX or VYM?
FEX has been the more volatile fund at 17.1% annualized versus 14.6% 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. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between FEX and VYM?
FEX and VYM share 172 common holdings with a 31.9% weight overlap. Combined, they hold 755 unique securities.
Which pays a higher dividend, FEX or VYM?
FEX yields 0.96% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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