FIAX vs VYM
Nicholas Fixed Income Alternative 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 558 holdings.
Side-by-Side Comparison
| Metric | FIAX | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.97% | 0.04% | |
| AUM | $129M | $79.0B | |
| Dividend Yield | 8.16% | 2.86% | |
| Holdings | 13 | 568 | |
| YTD Return | +1.85% | +16.53% | |
| 1Y Return | +4.14% | +25.03% | |
| 3Y Return (annualized) | +3.30% | +18.54% | |
| 5Y Return (annualized) | - | +12.25% | |
| Volatility (annualized) | 3.5% | 14.6% | |
| Max Drawdown | -6.3% | -58.8% | |
| Fund Family | XFunds | Vanguard (US) | |
| Category | Alternative | Equity | |
| Inception | Nov 29, 2022 | Nov 10, 2006 |
FIAX vs VYM Performance
Nicholas Fixed Income Alternative ETF (FIAX) is a ETF from XFunds and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year FIAX returned +4.14% while VYM returned +25.03%. Year to date, FIAX is up 1.85% versus a gain of 16.53% for VYM.
Over three years, FIAX compounded at +3.30% per year against +18.54% for VYM. Across the full 4-year window we track, VYM has the edge at +7.10% annualized vs +3.25%. 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 3.5% for FIAX. 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 -6.3% for FIAX 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 0.69. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FIAX charges 0.97% per year while VYM charges 0.04%. On a $10,000 position that is $97 vs $4 annually, a gap of $93 per year that compounds over a long holding period. On income, FIAX currently yields 8.16% against 2.86% for VYM.
Holdings Overlap
FIAX and VYM share 0 holdings out of 562 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FIAX or VYM?
FIAX has an expense ratio of 0.97% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $93 per year of difference.
Which performed better, FIAX or VYM?
Over the past year FIAX returned +4.14% vs +25.03% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (4 years), FIAX annualized +3.25% vs +7.10% for VYM. Past performance does not guarantee future results.
Which is riskier, FIAX or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 3.5% for FIAX. Worst drawdown: FIAX -6.3% vs VYM -58.8%.
Should I hold both FIAX and VYM?
FIAX and VYM have a monthly-return correlation of 0.69, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FIAX and VYM?
FIAX and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 562 unique securities.
Which pays a higher dividend, FIAX or VYM?
FIAX yields 8.16% while VYM yields 2.86%, so FIAX currently pays the higher dividend yield.
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