FPE vs VYM
First Trust Preferred Securities and Income ETF vs Vanguard High Dividend Yield ETF
Which is better, FPE or VYM?
Preferred Stock 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 | FPE | VYM |
|---|---|---|
| Expense Ratio | 0.83% | 0.04%Best |
| AUM | $6.3B | $81.6B |
| Dividend Yield | 5.89% | 2.24% |
| Holdings | 261 | 613 |
| YTD Return | +0.28% | +14.82%Best |
| 1Y Return | +2.72% | +20.84%Best |
| 3Y Return (annualized) | +9.09% | +18.64%Best |
| 5Y Return (annualized) | +2.47% | +12.28%Best |
| Volatility (annualized) | 8.4%Best | 13.3% |
| Max Drawdown | -34.8%Best | -35.7% |
| $10,000 over 5 years | $11,298 | $17,845Best |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) |
| Category | Allocation/Balanced | Equity |
| Style | Preferred Stock | Large Cap Value |
| Inception | Feb 11, 2013 | Nov 10, 2006 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Feb 12, 2013 to Sep 4, 2026 (13.6 years).
FPE 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 13.6 years both funds cover.
FPE vs VYM Performance
First Trust Preferred Securities and Income ETF (FPE) 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 FPE returned +2.72% while VYM returned +20.84%. Year to date, FPE is up 0.28% versus a gain of 14.82% for VYM.
Over three years, FPE compounded at +9.09% per year against +18.64% for VYM; over five years the annualized figures are +2.47% and +12.28% respectively. Across the full 14-year window we track, VYM has the edge at +10.01% annualized vs +1.32%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 13.3% compared with 8.4% for FPE. 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 -34.8% for FPE and -35.7% 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 0.63. They move together some of the time, and apart the rest.
Fees and Cost Over Time
FPE charges 0.83% per year while VYM charges 0.04%. On a $10,000 position that is $83 vs $4 annually, a gap of $79 per year that compounds over a long holding period. On income, FPE currently yields 5.89% against 2.24% for VYM.
Holdings Overlap
At least 1.5% of VYM's money is in holdings FPE also owns.
Stated as a floor: for FPE, our book for it covers 75.3% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
VYM and FPE share little of their money.
3 positions in common, counted across the 198 positions we hold weights for in FPE and 603 in VYM, against full books of 261 and 613.
You are not choosing between two funds in isolation.
Whichever of FPE 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, FPE or VYM?
FPE has an expense ratio of 0.83% while VYM charges 0.04%. VYM is the cheaper option, by $79 a year on a $10,000 investment.
Which performed better, FPE or VYM?
Over the past year FPE returned +2.72% vs +20.84% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (14 years), FPE annualized +1.32% vs +10.01% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FPE or VYM?
VYM has been the more volatile fund at 13.3% annualized versus 8.4% for FPE. Worst drawdown: FPE -34.8% vs VYM -35.7%.
Should I hold both FPE and VYM?
FPE and VYM have a monthly-return correlation of 0.63, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between FPE and VYM?
At least 1.5% of VYM's money is in holdings FPE also owns. Our book for FPE is partial, so the real figure is this or higher. They hold 3 positions in common, counted across the 198 positions we hold weights for in FPE and 603 in VYM.
Which pays a higher dividend, FPE or VYM?
FPE yields 5.89% while VYM yields 2.24%, so FPE currently pays the higher dividend yield.
Is VYM better than FPE?
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.