FMCE vs VYM
FM Compounders Equity ETF vs Vanguard High Dividend Yield ETF
Which is better, FMCE or VYM?
Large Cap Blend against Large Cap Value.
VYM has a lower expense ratio. VYM led over 1Y and the full window. VYM is less concentrated, with 26.1% of the fund in its ten largest positions against 54.8%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | FMCE | VYM |
|---|---|---|
| Expense Ratio | 0.71% | 0.04%Best |
| AUM | $69M | $81.6B |
| Dividend Yield | 2.82% | 2.22% |
| Holdings | 31 | 613 |
| YTD Return | +9.56% | +11.47%Best |
| 1Y Return | +9.13% | +15.94%Best |
| 3Y Return (annualized) | - | +18.03% |
| 5Y Return (annualized) | - | +12.35% |
| Volatility (annualized) | 11.4% | 10.6%Best |
| Max Drawdown | -11.7%Best | -14.5% |
| $10,000 over 1.9 years | $11,898 | $12,627Best |
| Top 10 Weight | 54.8% | 26.1%Best |
| Fund Family | First Manhattan | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Value |
| Inception | Nov 8, 2024 | Nov 10, 2006 |
Volatility and max drawdown, and the $10,000 over 1.9 years row, are measured over the window both funds cover: Nov 11, 2024 to Sep 21, 2026 (1.9 years).
FMCE vs VYM growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 1.9 years both funds cover.
FMCE vs VYM Performance
FM Compounders Equity ETF (FMCE) is an ETF from First Manhattan and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year FMCE returned +9.13% while VYM returned +15.94%. Year to date, FMCE is up 9.56% versus a gain of 11.47% for VYM.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FMCE has been the more volatile fund, with annualized monthly volatility of 11.4% compared with 10.6% 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 -11.7% for FMCE and -14.5% for VYM. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.74. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FMCE charges 0.71% per year while VYM charges 0.04%. On a $10,000 position that is $71 vs $4 annually, a gap of $67 per year that compounds over a long holding period. On income, FMCE currently yields 2.82% against 2.22% for VYM.
Holdings Overlap
13.9% of FMCE's money is in holdings VYM also owns. 3.9% of VYM's money is in holdings FMCE also owns.
FMCE and VYM share little of their money.
The two holdings books were reported 61 days apart, FMCE as of May 31, 2026 and VYM as of Jul 31, 2026, so some of the difference between them is the time between the two reports rather than the funds.
5 positions in common, counted across the 31 positions we hold weights for in FMCE and 557 in VYM, against full books of 31 and 613.
What only one of them owns
Our book lists 523 positions for VYM that do not appear in our book for FMCE (93.2% of the fund), and 23 for FMCE that do not appear in VYM (79.9%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
You are not choosing between two funds in isolation.
Whichever of FMCE and VYM you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, FMCE or VYM?
FMCE has an expense ratio of 0.71% while VYM charges 0.04%. VYM is the cheaper option, by $67 a year on a $10,000 investment.
Which performed better, FMCE or VYM?
Over the past year FMCE returned +9.13% vs +15.94% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (2 years), FMCE annualized +9.58% vs +13.06% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FMCE or VYM?
FMCE has been the more volatile fund at 11.4% annualized versus 10.6% for VYM. Worst drawdown: FMCE -11.7% vs VYM -14.5%.
Should I hold both FMCE and VYM?
FMCE and VYM have a monthly-return correlation of 0.74, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between FMCE and VYM?
13.9% of FMCE's money is in holdings VYM also owns. 3.9% of VYM's is in holdings FMCE also owns. They hold 5 positions in common, counted across the 31 positions we hold weights for in FMCE and 557 in VYM.
Which pays a higher dividend, FMCE or VYM?
FMCE yields 2.82% while VYM yields 2.22%, so FMCE currently pays the higher dividend yield.
Is VYM better than FMCE?
VYM has a lower expense ratio. VYM led over 1Y and the full window. VYM is less concentrated, with 26.1% of the fund in its ten largest positions against 54.8%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.