FKU vs VYM
First Trust United Kingdom AlphaDEX Fund 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 | FKU | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.80% | 0.04% | |
| AUM | $38M | $79.0B | |
| Dividend Yield | 2.71% | 2.86% | |
| Holdings | 79 | 568 | |
| YTD Return | +13.12% | +16.16% | |
| 1Y Return | +24.76% | +26.05% | |
| 3Y Return (annualized) | +23.10% | +18.43% | |
| 5Y Return (annualized) | +8.89% | +12.21% | |
| Volatility (annualized) | 19.7% | 14.6% | |
| Max Drawdown | -58.7% | -58.8% | |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Feb 14, 2012 | Nov 10, 2006 |
FKU vs VYM Performance
First Trust United Kingdom AlphaDEX Fund (FKU) 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 FKU returned +24.76% while VYM returned +26.05%. Year to date, FKU is up 13.12% versus a gain of 16.16% for VYM.
Over three years, FKU compounded at +23.10% per year against +18.43% for VYM; over five years the annualized figures are +8.89% and +12.21% respectively. Across the full 15-year window we track, VYM has the edge at +7.09% annualized vs +5.86%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FKU has been the more volatile fund, with annualized monthly volatility of 19.7% 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 -58.7% for FKU 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 0.77. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FKU charges 0.80% per year while VYM charges 0.04%. On a $10,000 position that is $80 vs $4 annually, a gap of $76 per year that compounds over a long holding period. On income, FKU currently yields 2.71% against 2.86% for VYM.
Holdings Overlap
FKU and VYM share 0 holdings out of 634 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, FKU or VYM?
FKU has an expense ratio of 0.80% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $76 per year of difference.
Which performed better, FKU or VYM?
Over the past year FKU returned +24.76% vs +26.05% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (15 years), FKU annualized +5.86% vs +7.09% for VYM. Past performance does not guarantee future results.
Which is riskier, FKU or VYM?
FKU has been the more volatile fund at 19.7% annualized versus 14.6% for VYM. Worst drawdown: FKU -58.7% vs VYM -58.8%.
Should I hold both FKU and VYM?
FKU and VYM have a monthly-return correlation of 0.77, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FKU and VYM?
FKU and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 634 unique securities.
Which pays a higher dividend, FKU or VYM?
FKU yields 2.71% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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