FMCE vs VYM
FM Compounders Equity 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 | FMCE | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.72% | 0.04% | |
| AUM | $67M | $79.0B | |
| Dividend Yield | 2.82% | 2.86% | |
| Holdings | 30 | 568 | |
| YTD Return | +11.09% | +16.16% | |
| 1Y Return | +16.00% | +26.05% | |
| 3Y Return (annualized) | - | +18.43% | |
| 5Y Return (annualized) | - | +12.21% | |
| Volatility (annualized) | 11.7% | 14.6% | |
| Max Drawdown | -11.7% | -58.8% | |
| Fund Family | First Manhattan | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Nov 8, 2024 | Nov 10, 2006 |
FMCE vs VYM Performance
FM Compounders Equity ETF (FMCE) is a ETF from First Manhattan and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year FMCE returned +16.00% while VYM returned +26.05%. Year to date, FMCE is up 11.09% versus a gain of 16.16% for VYM.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 11.7% for FMCE. 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 -11.7% for FMCE 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 0.75. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FMCE charges 0.72% per year while VYM charges 0.04%. On a $10,000 position that is $72 vs $4 annually, a gap of $68 per year that compounds over a long holding period. On income, FMCE currently yields 2.82% against 2.86% for VYM.
Holdings Overlap
FMCE and VYM share 5 holdings out of 584 unique holdings combined, representing a 4.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FMCE or VYM?
FMCE has an expense ratio of 0.72% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $68 per year of difference.
Which performed better, FMCE or VYM?
Over the past year FMCE returned +16.00% vs +26.05% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (2 years), FMCE annualized +11.10% vs +7.09% for VYM. Past performance does not guarantee future results.
Which is riskier, FMCE or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 11.7% for FMCE. Worst drawdown: FMCE -11.7% vs VYM -58.8%.
Should I hold both FMCE and VYM?
FMCE and VYM have a monthly-return correlation of 0.75, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FMCE and VYM?
FMCE and VYM share 5 common holdings with a 4.0% weight overlap. Combined, they hold 584 unique securities.
Which pays a higher dividend, FMCE or VYM?
FMCE yields 2.82% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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