FPF vs VYM
First Trust Intermediate Duration Preferred & Income Fund 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 | FPF | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 1.78% | 0.04% | |
| AUM | $1.8B | $81.6B | |
| Dividend Yield | 8.75% | 2.24% | |
| Holdings | 230 | 616 | |
| YTD Return | +0.62% | +14.84% | |
| 1Y Return | +1.40% | +20.88% | |
| 3Y Return (annualized) | +15.20% | +18.34% | |
| 5Y Return (annualized) | +0.74% | +12.04% | |
| Volatility (annualized) | 14.9% | 14.6% | |
| Max Drawdown | -54.6% | -58.8% | |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) | |
| Category | Allocation/Balanced | Equity | |
| Inception | May 24, 2013 | Nov 10, 2006 |
FPF vs VYM Performance
First Trust Intermediate Duration Preferred & Income Fund (FPF) is a ETF from First Trust Portfolios (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year FPF returned +1.40% while VYM returned +20.88%. Year to date, FPF is up 0.62% versus a gain of 14.84% for VYM.
Over three years, FPF compounded at +15.20% per year against +18.34% for VYM; over five years the annualized figures are +0.74% and +12.04% respectively. Across the full 13-year window we track, VYM has the edge at +7.01% annualized vs +0.84%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FPF has been the more volatile fund, with annualized monthly volatility of 14.9% 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 -54.6% for FPF 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 0.64. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FPF charges 1.78% per year while VYM charges 0.04%. On a $10,000 position that is $178 vs $4 annually, a gap of $174 per year that compounds over a long holding period. On income, FPF currently yields 8.75% against 2.24% for VYM.
Holdings Overlap
FPF and VYM share 15 holdings out of 758 unique holdings combined, representing a 2.6% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FPF or VYM?
FPF has an expense ratio of 1.78% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $174 per year of difference.
Which performed better, FPF or VYM?
Over the past year FPF returned +1.40% vs +20.88% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (13 years), FPF annualized +0.84% vs +7.01% for VYM. Past performance does not guarantee future results.
Which is riskier, FPF or VYM?
FPF has been the more volatile fund at 14.9% annualized versus 14.6% for VYM. Worst drawdown: FPF -54.6% vs VYM -58.8%.
Should I hold both FPF and VYM?
FPF and VYM have a monthly-return correlation of 0.64, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FPF and VYM?
FPF and VYM share 15 common holdings with a 2.6% weight overlap. Combined, they hold 758 unique securities.
Which pays a higher dividend, FPF or VYM?
FPF yields 8.75% while VYM yields 2.24%, so FPF currently pays the higher dividend yield.
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