FHLC vs VYM
Fidelity MSCI Health Care Index ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. FHLC delivered stronger 1-year returns. VYM offers more diversification with 616 holdings.
Side-by-Side Comparison
| Metric | FHLC | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.08% | 0.04% | |
| AUM | $3.3B | $81.6B | |
| Dividend Yield | 1.29% | 2.24% | |
| Holdings | 341 | 616 | |
| YTD Return | +11.24% | +15.75% | |
| 1Y Return | +28.69% | +23.85% | |
| 3Y Return (annualized) | +10.97% | +19.14% | |
| 5Y Return (annualized) | +5.79% | +12.45% | |
| Volatility (annualized) | 14.4% | 14.6% | |
| Max Drawdown | -29.2% | -58.8% | |
| Fund Family | Fidelity Investments (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Oct 21, 2013 | Nov 10, 2006 |
FHLC vs VYM Performance
Fidelity MSCI Health Care Index ETF (FHLC) is a ETF from Fidelity Investments (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year FHLC returned +28.69% while VYM returned +23.85%. Year to date, FHLC is up 11.24% versus a gain of 15.75% for VYM.
Over three years, FHLC compounded at +10.97% per year against +19.14% for VYM; over five years the annualized figures are +5.79% and +12.45% respectively. Across the full 13-year window we track, FHLC has the edge at +10.35% annualized vs +7.06%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 14.4% for FHLC. 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 -29.2% for FHLC 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 0.73. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FHLC charges 0.08% per year while VYM charges 0.04%. On a $10,000 position that is $8 vs $4 annually, a gap of $4 per year that compounds over a long holding period. On income, FHLC currently yields 1.29% against 2.24% for VYM.
Holdings Overlap
FHLC and VYM share 23 holdings out of 891 unique holdings combined, representing a 12.7% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FHLC or VYM?
FHLC has an expense ratio of 0.08% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $4 per year of difference.
Which performed better, FHLC or VYM?
Over the past year FHLC returned +28.69% vs +23.85% for VYM, so FHLC leads on 1-year performance. Over the longest common window we track (13 years), FHLC annualized +10.35% vs +7.06% for VYM. Past performance does not guarantee future results.
Which is riskier, FHLC or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 14.4% for FHLC. Worst drawdown: FHLC -29.2% vs VYM -58.8%.
Should I hold both FHLC and VYM?
FHLC and VYM have a monthly-return correlation of 0.73, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FHLC and VYM?
FHLC and VYM share 23 common holdings with a 12.7% weight overlap. Combined, they hold 891 unique securities.
Which pays a higher dividend, FHLC or VYM?
FHLC yields 1.29% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.
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