FHEQ vs VYM
Fidelity Hedged Equity ETF 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 | FHEQ | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.48% | 0.04% | |
| AUM | $929M | $81.6B | |
| Dividend Yield | 0.54% | 2.24% | |
| Holdings | 181 | 616 | |
| YTD Return | +9.73% | +15.25% | |
| 1Y Return | +14.45% | +22.18% | |
| 3Y Return (annualized) | - | +18.83% | |
| 5Y Return (annualized) | - | +12.09% | |
| Volatility (annualized) | 9.6% | 14.6% | |
| Max Drawdown | -11.1% | -58.8% | |
| Fund Family | Fidelity Investments (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Apr 9, 2024 | Nov 10, 2006 |
FHEQ vs VYM Performance
Fidelity Hedged Equity ETF (FHEQ) is a ETF from Fidelity Investments (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year FHEQ returned +14.45% while VYM returned +22.18%. Year to date, FHEQ is up 9.73% versus a gain of 15.25% for VYM.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 9.6% for FHEQ. 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 -11.1% for FHEQ 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 0.66. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FHEQ charges 0.48% per year while VYM charges 0.04%. On a $10,000 position that is $48 vs $4 annually, a gap of $44 per year that compounds over a long holding period. On income, FHEQ currently yields 0.54% against 2.24% for VYM.
Holdings Overlap
FHEQ and VYM share 54 holdings out of 717 unique holdings combined, representing a 23.6% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FHEQ or VYM?
FHEQ has an expense ratio of 0.48% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $44 per year of difference.
Which performed better, FHEQ or VYM?
Over the past year FHEQ returned +14.45% vs +22.18% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (2 years), FHEQ annualized +14.33% vs +7.03% for VYM. Past performance does not guarantee future results.
Which is riskier, FHEQ or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 9.6% for FHEQ. Worst drawdown: FHEQ -11.1% vs VYM -58.8%.
Should I hold both FHEQ and VYM?
FHEQ and VYM have a monthly-return correlation of 0.66, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FHEQ and VYM?
FHEQ and VYM share 54 common holdings with a 23.6% weight overlap. Combined, they hold 717 unique securities.
Which pays a higher dividend, FHEQ or VYM?
FHEQ yields 0.54% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.