FLTR vs VYM
VanEck IG Floating Rate 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 | FLTR | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.14% | 0.04% | |
| AUM | $2.9B | $81.6B | |
| Dividend Yield | 4.63% | 2.24% | |
| Holdings | 454 | 616 | |
| YTD Return | +2.78% | +16.42% | |
| 1Y Return | +4.85% | +24.22% | |
| 3Y Return (annualized) | +5.93% | +19.03% | |
| 5Y Return (annualized) | +4.65% | +12.21% | |
| Volatility (annualized) | 13.2% | 14.6% | |
| Max Drawdown | -58.9% | -58.8% | |
| Fund Family | VanEck | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Apr 25, 2011 | Nov 10, 2006 |
FLTR vs VYM Performance
VanEck IG Floating Rate ETF (FLTR) is a ETF from VanEck and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year FLTR returned +4.85% while VYM returned +24.22%. Year to date, FLTR is up 2.78% versus a gain of 16.42% for VYM.
Over three years, FLTR compounded at +5.93% per year against +19.03% for VYM; over five years the annualized figures are +4.65% and +12.21% respectively. Across the full 15-year window we track, VYM has the edge at +7.10% annualized vs -2.86%. 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 13.2% for FLTR. 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 -58.9% for FLTR 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 0.20. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FLTR charges 0.14% per year while VYM charges 0.04%. On a $10,000 position that is $14 vs $4 annually, a gap of $10 per year that compounds over a long holding period. On income, FLTR currently yields 4.63% against 2.24% for VYM.
Holdings Overlap
FLTR and VYM share 0 holdings out of 856 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, FLTR or VYM?
FLTR has an expense ratio of 0.14% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $10 per year of difference.
Which performed better, FLTR or VYM?
Over the past year FLTR returned +4.85% vs +24.22% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (15 years), FLTR annualized -2.86% vs +7.10% for VYM. Past performance does not guarantee future results.
Which is riskier, FLTR or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 13.2% for FLTR. Worst drawdown: FLTR -58.9% vs VYM -58.8%.
Should I hold both FLTR and VYM?
FLTR and VYM have a monthly-return correlation of 0.20, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FLTR and VYM?
FLTR and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 856 unique securities.
Which pays a higher dividend, FLTR or VYM?
FLTR yields 4.63% while VYM yields 2.24%, so FLTR currently pays the higher dividend yield.
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