FNCL vs VYM
Fidelity MSCI Financials 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 616 holdings.
Side-by-Side Comparison
| Metric | FNCL | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.08% | 0.04% | |
| AUM | $2.4B | $81.6B | |
| Dividend Yield | 1.56% | 2.24% | |
| Holdings | 389 | 616 | |
| YTD Return | +7.34% | +15.25% | |
| 1Y Return | +11.20% | +22.18% | |
| 3Y Return (annualized) | +22.18% | +18.83% | |
| 5Y Return (annualized) | +10.59% | +12.09% | |
| Volatility (annualized) | 18.6% | 14.6% | |
| Max Drawdown | -45.0% | -58.8% | |
| Fund Family | Fidelity Investments (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Oct 21, 2013 | Nov 10, 2006 |
FNCL vs VYM Performance
Fidelity MSCI Financials Index ETF (FNCL) is a ETF from Fidelity Investments (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year FNCL returned +11.20% while VYM returned +22.18%. Year to date, FNCL is up 7.34% versus a gain of 15.25% for VYM.
Over three years, FNCL compounded at +22.18% per year against +18.83% for VYM; over five years the annualized figures are +10.59% and +12.09% respectively. Across the full 13-year window we track, FNCL has the edge at +10.71% annualized vs +7.03%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FNCL has been the more volatile fund, with annualized monthly volatility of 18.6% 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 -45.0% for FNCL 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 0.87. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FNCL 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, FNCL currently yields 1.56% against 2.24% for VYM.
Holdings Overlap
FNCL and VYM share 158 holdings out of 817 unique holdings combined, representing a 19.7% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FNCL or VYM?
FNCL 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, FNCL or VYM?
Over the past year FNCL returned +11.20% vs +22.18% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (13 years), FNCL annualized +10.71% vs +7.03% for VYM. Past performance does not guarantee future results.
Which is riskier, FNCL or VYM?
FNCL has been the more volatile fund at 18.6% annualized versus 14.6% for VYM. Worst drawdown: FNCL -45.0% vs VYM -58.8%.
Should I hold both FNCL and VYM?
FNCL and VYM have a monthly-return correlation of 0.87, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FNCL and VYM?
FNCL and VYM share 158 common holdings with a 19.7% weight overlap. Combined, they hold 817 unique securities.
Which pays a higher dividend, FNCL or VYM?
FNCL yields 1.56% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.
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