FMY vs VYM
First Trust Mortgage Income Fund vs Vanguard High Dividend Yield ETF
Which is better, FMY or VYM?
Diversified Sectoral Bond against Large Cap Value.
VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window.
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 | FMY | VYM |
|---|---|---|
| Expense Ratio | 1.35% | 0.04%Best |
| AUM | $52M | $81.6B |
| Dividend Yield | 6.32% | 2.22% |
| Holdings | 177 | 613 |
| YTD Return | -1.19% | +11.71%Best |
| 1Y Return | -1.02% | +16.24%Best |
| 3Y Return (annualized) | +8.04% | +17.24%Best |
| 5Y Return (annualized) | +2.70% | +11.86%Best |
| Volatility (annualized) | 8.8%Best | 14.6% |
| Max Drawdown | -47.3%Best | -58.8% |
| $10,000 over 5 years | $11,425 | $17,514Best |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) |
| Category | Fixed Income | Equity |
| Style | Diversified Sectoral Bond | Large Cap Value |
| Inception | May 25, 2005 | Nov 10, 2006 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Nov 16, 2006 to Sep 16, 2026 (19.8 years).
FMY 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 19.8 years both funds cover.
FMY vs VYM Performance
First Trust Mortgage Income Fund (FMY) is an ETF from First Trust Portfolios (US) and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year FMY returned -1.02% while VYM returned +16.24%. Year to date, FMY is down 1.19% versus a gain of 11.71% for VYM.
Over three years, FMY compounded at +8.04% per year against +17.24% for VYM; over five years the annualized figures are +2.70% and +11.86% respectively. Across the full 20-year window we track, VYM has the edge at +6.84% annualized vs +0.00%.
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 8.8% for FMY. 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 -47.3% for FMY and -58.8% 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 0.42. They move together some of the time, and apart the rest.
Fees and Cost Over Time
FMY charges 1.35% per year while VYM charges 0.04%. On a $10,000 position that is $135 vs $4 annually, a gap of $131 per year that compounds over a long holding period. On income, FMY currently yields 6.32% against 2.22% for VYM.
Holdings Overlap
We hold position weights for 39 holdings in FMY and 557 in VYM, totalling 31.8% and 99.2% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
The two holdings books were reported 92 days apart, FMY as of Apr 30, 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.
0 positions in common, counted across the 39 positions we hold weights for in FMY and 557 in VYM, against full books of 177 and 613.
You are not choosing between two funds in isolation.
Whichever of FMY 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, FMY or VYM?
FMY has an expense ratio of 1.35% while VYM charges 0.04%. VYM is the cheaper option, by $131 a year on a $10,000 investment.
Which performed better, FMY or VYM?
Over the past year FMY returned -1.02% vs +16.24% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), FMY annualized +0.00% vs +6.84% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FMY or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 8.8% for FMY. Worst drawdown: FMY -47.3% vs VYM -58.8%.
Should I hold both FMY and VYM?
FMY and VYM have a monthly-return correlation of 0.42, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, FMY or VYM?
FMY yields 6.32% while VYM yields 2.22%, so FMY currently pays the higher dividend yield.
Is VYM better than FMY?
VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.