FMKT vs VYM
The Free Markets 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 | FMKT | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.76% | 0.04% | |
| AUM | $12M | $81.6B | |
| Dividend Yield | 2.14% | 2.24% | |
| Holdings | 45 | 616 | |
| YTD Return | +3.99% | +16.42% | |
| 1Y Return | +6.76% | +24.22% | |
| 3Y Return (annualized) | - | +19.03% | |
| 5Y Return (annualized) | - | +12.21% | |
| Volatility (annualized) | 14.5% | 14.6% | |
| Max Drawdown | -17.8% | -58.8% | |
| Fund Family | Tidal ETF Trust | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jun 9, 2025 | Nov 10, 2006 |
FMKT vs VYM Performance
The Free Markets ETF (FMKT) is a ETF from Tidal ETF Trust and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year FMKT returned +6.76% while VYM returned +24.22%. Year to date, FMKT is up 3.99% versus a gain of 16.42% for VYM.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 14.5% for FMKT. 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 -17.8% for FMKT 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 0.52. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FMKT charges 0.76% per year while VYM charges 0.04%. On a $10,000 position that is $76 vs $4 annually, a gap of $72 per year that compounds over a long holding period. On income, FMKT currently yields 2.14% against 2.24% for VYM.
Holdings Overlap
FMKT and VYM share 17 holdings out of 630 unique holdings combined, representing a 5.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FMKT or VYM?
FMKT has an expense ratio of 0.76% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $72 per year of difference.
Which performed better, FMKT or VYM?
Over the past year FMKT returned +6.76% vs +24.22% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (1 years), FMKT annualized +15.09% vs +7.10% for VYM. Past performance does not guarantee future results.
Which is riskier, FMKT or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 14.5% for FMKT. Worst drawdown: FMKT -17.8% vs VYM -58.8%.
Should I hold both FMKT and VYM?
FMKT and VYM have a monthly-return correlation of 0.52, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FMKT and VYM?
FMKT and VYM share 17 common holdings with a 5.2% weight overlap. Combined, they hold 630 unique securities.
Which pays a higher dividend, FMKT or VYM?
FMKT yields 2.14% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.
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