FNGO vs VYM

FNGO vs VYM
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Quick Verdict

VYM has a lower expense ratio. FNGO delivered stronger 1-year returns. VYM offers more diversification with 616 holdings.

Lower Fees: VYMHigher Returns: FNGOMore Diversified: VYM

Side-by-Side Comparison

MetricFNGOVYMWinner
Expense Ratio0.95%0.04%
AUM$772M$81.6B
Dividend Yield0.00%2.24%
Holdings10616
YTD Return+29.43%+15.60%
1Y Return+31.55%+23.48%
3Y Return (annualized)+60.40%+19.07%
5Y Return (annualized)+28.80%+12.50%
Volatility (annualized)56.2%14.6%
Max Drawdown-78.4%-58.8%
Fund FamilyBMO Capital MarketsVanguard (US)
CategoryAlternativeEquity
InceptionAug 1, 2018Nov 10, 2006

FNGO vs VYM Performance

MicroSectors FANG+ Index 2X Leveraged ETN (FNGO) is a ETF from BMO Capital Markets and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year FNGO returned +31.55% while VYM returned +23.48%. Year to date, FNGO is up 29.43% versus a gain of 15.60% for VYM.

Over three years, FNGO compounded at +60.40% per year against +19.07% for VYM; over five years the annualized figures are +28.80% and +12.50% respectively. Across the full 8-year window we track, FNGO has the edge at +39.10% annualized vs +7.05%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

FNGO has been the more volatile fund, with annualized monthly volatility of 56.2% 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 -78.4% for FNGO 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 0.48. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

FNGO charges 0.95% per year while VYM charges 0.04%. On a $10,000 position that is $95 vs $4 annually, a gap of $91 per year that compounds over a long holding period. On income, FNGO currently yields 0.00% against 2.24% for VYM.

Holdings Overlap

7.3%overlap

FNGO and VYM share 1 holdings out of 612 unique holdings combined, representing a 7.3% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in FNGOWeight in VYMDifference
AVGO10.08%7.29%2.79%

Frequently Asked Questions

Which is cheaper, FNGO or VYM?

FNGO has an expense ratio of 0.95% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $91 per year of difference.

Which performed better, FNGO or VYM?

Over the past year FNGO returned +31.55% vs +23.48% for VYM, so FNGO leads on 1-year performance. Over the longest common window we track (8 years), FNGO annualized +39.10% vs +7.05% for VYM. Past performance does not guarantee future results.

Which is riskier, FNGO or VYM?

FNGO has been the more volatile fund at 56.2% annualized versus 14.6% for VYM. Worst drawdown: FNGO -78.4% vs VYM -58.8%.

Should I hold both FNGO and VYM?

FNGO and VYM have a monthly-return correlation of 0.48, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between FNGO and VYM?

FNGO and VYM share 1 common holdings with a 7.3% weight overlap. Combined, they hold 612 unique securities.

Which pays a higher dividend, FNGO or VYM?

FNGO yields 0.00% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.

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