FLC vs VYM
Flaherty & Crumrine Total Return 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 | FLC | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 1.64% | 0.04% | |
| AUM | $193M | $79.0B | |
| Dividend Yield | 6.71% | 2.86% | |
| Holdings | 257 | 568 | |
| YTD Return | -0.15% | +16.10% | |
| 1Y Return | +5.64% | +25.99% | |
| 3Y Return (annualized) | +12.73% | +18.29% | |
| 5Y Return (annualized) | -0.04% | +12.35% | |
| Volatility (annualized) | 19.3% | 14.6% | |
| Max Drawdown | -83.0% | -58.8% | |
| Fund Family | Flaherty & Crumrine | Vanguard (US) | |
| Category | Allocation/Balanced | Equity | |
| Inception | Aug 29, 2003 | Nov 10, 2006 |
FLC vs VYM Performance
Flaherty & Crumrine Total Return Fund (FLC) is a ETF from Flaherty & Crumrine and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year FLC returned +5.64% while VYM returned +25.99%. Year to date, FLC is down 0.15% versus a gain of 16.10% for VYM.
Over three years, FLC compounded at +12.73% per year against +18.29% for VYM; over five years the annualized figures are -0.04% and +12.35% respectively. Across the full 20-year window we track, VYM has the edge at +7.08% annualized vs -0.02%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FLC has been the more volatile fund, with annualized monthly volatility of 19.3% 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 -83.0% for FLC 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 0.41. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FLC charges 1.64% per year while VYM charges 0.04%. On a $10,000 position that is $164 vs $4 annually, a gap of $160 per year that compounds over a long holding period. On income, FLC currently yields 6.71% against 2.86% for VYM.
Holdings Overlap
FLC and VYM share 20 holdings out of 722 unique holdings combined, representing a 2.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FLC or VYM?
FLC has an expense ratio of 1.64% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $160 per year of difference.
Which performed better, FLC or VYM?
Over the past year FLC returned +5.64% vs +25.99% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), FLC annualized -0.02% vs +7.08% for VYM. Past performance does not guarantee future results.
Which is riskier, FLC or VYM?
FLC has been the more volatile fund at 19.3% annualized versus 14.6% for VYM. Worst drawdown: FLC -83.0% vs VYM -58.8%.
Should I hold both FLC and VYM?
FLC and VYM have a monthly-return correlation of 0.41, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FLC and VYM?
FLC and VYM share 20 common holdings with a 2.1% weight overlap. Combined, they hold 722 unique securities.
Which pays a higher dividend, FLC or VYM?
FLC yields 6.71% while VYM yields 2.86%, so FLC currently pays the higher dividend yield.
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