FFC vs VYM

Quick Verdict

VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.

Lower Fees: VYMHigher Returns: VYMMore Diversified: VYM

Side-by-Side Comparison

MetricFFCVYMWinner
Expense Ratio1.23%0.04%
AUM$829M$79.0B
Dividend Yield7.03%2.86%
Holdings252568
YTD Return+2.05%+15.80%
1Y Return+7.52%+26.12%
3Y Return (annualized)+13.38%+18.25%
5Y Return (annualized)+0.44%+12.51%
Volatility (annualized)19.9%14.6%
Max Drawdown-84.5%-58.8%
Fund FamilyFlaherty & CrumrineVanguard (US)
CategoryAllocation/BalancedEquity
InceptionJan 31, 2003Nov 10, 2006

FFC vs VYM Performance

Flaherty & Crumrine Preferred Securities Income Fund Incorporated (FFC) is a ETF from Flaherty & Crumrine and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year FFC returned +7.52% while VYM returned +26.12%. Year to date, FFC is up 2.05% versus a gain of 15.80% for VYM.

Over three years, FFC compounded at +13.38% per year against +18.25% for VYM; over five years the annualized figures are +0.44% and +12.51% respectively. Across the full 20-year window we track, VYM has the edge at +7.07% annualized vs -0.12%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

FFC has been the more volatile fund, with annualized monthly volatility of 19.9% 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 -84.5% for FFC 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 0.45. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

FFC charges 1.23% per year while VYM charges 0.04%. On a $10,000 position that is $123 vs $4 annually, a gap of $119 per year that compounds over a long holding period. On income, FFC currently yields 7.03% against 2.86% for VYM.

Holdings Overlap

1.9%overlap

FFC and VYM share 22 holdings out of 720 unique holdings combined, representing a 1.9% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in FFCWeight in VYMDifference
FHN1.51%0.05%1.46%
SYF1.37%0.11%1.26%
CFG0.91%0.11%0.80%
WSBCProProPro
HBANProProPro
RGAProProPro
APOProProPro
BKProProPro
UMBFProProPro
VLYProProPro
See all 10 holdings FFC shares with VYM
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Frequently Asked Questions

Which is cheaper, FFC or VYM?

FFC has an expense ratio of 1.23% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $119 per year of difference.

Which performed better, FFC or VYM?

Over the past year FFC returned +7.52% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), FFC annualized -0.12% vs +7.07% for VYM. Past performance does not guarantee future results.

Which is riskier, FFC or VYM?

FFC has been the more volatile fund at 19.9% annualized versus 14.6% for VYM. Worst drawdown: FFC -84.5% vs VYM -58.8%.

Should I hold both FFC and VYM?

FFC and VYM have a monthly-return correlation of 0.45, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between FFC and VYM?

FFC and VYM share 22 common holdings with a 1.9% weight overlap. Combined, they hold 720 unique securities.

Which pays a higher dividend, FFC or VYM?

FFC yields 7.03% while VYM yields 2.86%, so FFC currently pays the higher dividend yield.

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