FMAT vs VYM
Fidelity MSCI Materials Index 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 | FMAT | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.08% | 0.04% | |
| AUM | $624M | $79.0B | |
| Dividend Yield | 1.43% | 2.86% | |
| Holdings | 106 | 568 | |
| YTD Return | +12.86% | +15.80% | |
| 1Y Return | +20.84% | +26.12% | |
| 3Y Return (annualized) | +10.66% | +18.25% | |
| 5Y Return (annualized) | +7.07% | +12.51% | |
| Volatility (annualized) | 19.1% | 14.6% | |
| Max Drawdown | -43.9% | -58.8% | |
| Fund Family | Fidelity Investments (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Oct 21, 2013 | Nov 10, 2006 |
FMAT vs VYM Performance
Fidelity MSCI Materials Index ETF (FMAT) is a ETF from Fidelity Investments (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year FMAT returned +20.84% while VYM returned +26.12%. Year to date, FMAT is up 12.86% versus a gain of 15.80% for VYM.
Over three years, FMAT compounded at +10.66% per year against +18.25% for VYM; over five years the annualized figures are +7.07% and +12.51% respectively. Across the full 13-year window we track, FMAT has the edge at +7.86% annualized vs +7.07%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FMAT has been the more volatile fund, with annualized monthly volatility of 19.1% 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 -43.9% for FMAT 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 0.88. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FMAT 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, FMAT currently yields 1.43% against 2.86% for VYM.
Holdings Overlap
FMAT and VYM share 35 holdings out of 625 unique holdings combined, representing a 1.7% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FMAT or VYM?
FMAT 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, FMAT or VYM?
Over the past year FMAT returned +20.84% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (13 years), FMAT annualized +7.86% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, FMAT or VYM?
FMAT has been the more volatile fund at 19.1% annualized versus 14.6% for VYM. Worst drawdown: FMAT -43.9% vs VYM -58.8%.
Should I hold both FMAT and VYM?
FMAT and VYM have a monthly-return correlation of 0.88, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FMAT and VYM?
FMAT and VYM share 35 common holdings with a 1.7% weight overlap. Combined, they hold 625 unique securities.
Which pays a higher dividend, FMAT or VYM?
FMAT yields 1.43% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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