FNCMX vs VYM
Fidelity NASDAQ Composite Index vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. FNCMX offers more diversification with 2826 holdings.
Side-by-Side Comparison
| Metric | FNCMX | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.29% | 0.04% | |
| AUM | - | $79.0B | |
| Dividend Yield | 0.45% | 2.86% | |
| Holdings | 2,946 | 568 | |
| YTD Return | +14.87% | +16.16% | |
| 1Y Return | +24.49% | +26.05% | |
| 3Y Return (annualized) | +25.16% | +18.43% | |
| 5Y Return (annualized) | +12.68% | +12.21% | |
| Volatility (annualized) | 20.1% | 14.6% | |
| Max Drawdown | -36.8% | -58.8% | |
| Fund Family | Fidelity Investments (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Sep 25, 2003 | Nov 10, 2006 |
FNCMX vs VYM Performance
Fidelity NASDAQ Composite Index (FNCMX) is a mutual fund from Fidelity Investments (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year FNCMX returned +24.49% while VYM returned +26.05%. Year to date, FNCMX is up 14.87% versus a gain of 16.16% for VYM.
Over three years, FNCMX compounded at +25.16% per year against +18.43% for VYM; over five years the annualized figures are +12.68% and +12.21% respectively. Across the full 5-year window we track, FNCMX has the edge at +12.68% annualized vs +7.09%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FNCMX has been the more volatile fund, with annualized monthly volatility of 20.1% 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 -36.8% for FNCMX 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 0.61. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FNCMX charges 0.29% per year while VYM charges 0.04%. On a $10,000 position that is $29 vs $4 annually, a gap of $25 per year that compounds over a long holding period. On income, FNCMX currently yields 0.45% against 2.86% for VYM.
Holdings Overlap
FNCMX and VYM share 155 holdings out of 3229 unique holdings combined, representing a 16.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FNCMX or VYM?
FNCMX has an expense ratio of 0.29% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $25 per year of difference.
Which performed better, FNCMX or VYM?
Over the past year FNCMX returned +24.49% vs +26.05% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (5 years), FNCMX annualized +12.68% vs +7.09% for VYM. Past performance does not guarantee future results.
Which is riskier, FNCMX or VYM?
FNCMX has been the more volatile fund at 20.1% annualized versus 14.6% for VYM. Worst drawdown: FNCMX -36.8% vs VYM -58.8%.
Should I hold both FNCMX and VYM?
FNCMX and VYM have a monthly-return correlation of 0.61, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FNCMX and VYM?
FNCMX and VYM share 155 common holdings with a 16.0% weight overlap. Combined, they hold 3229 unique securities.
Which pays a higher dividend, FNCMX or VYM?
FNCMX yields 0.45% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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