FQAL vs VYM
Fidelity Quality Factor ETF vs Vanguard High Dividend Yield ETF
Which is better, FQAL or VYM?
Large Cap Blend against Large Cap Value.
VYM has a lower expense ratio. FQAL led over 3Y and the full window, VYM over 1Y and 5Y. VYM is less concentrated, with 25.9% of the fund in its ten largest positions against 39.6%.
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 | FQAL | VYM |
|---|---|---|
| Expense Ratio | 0.15% | 0.04%Best |
| AUM | $1.4B | $81.6B |
| Dividend Yield | 1.15% | 2.24% |
| Holdings | 130 | 613 |
| YTD Return | +12.69% | +14.82%Best |
| 1Y Return | +17.50% | +20.84%Best |
| 3Y Return (annualized) | +19.49%Best | +18.64% |
| 5Y Return (annualized) | +11.59% | +12.28%Best |
| Volatility (annualized) | 14.9% | 14.3%Best |
| Max Drawdown | -34.1%Best | -35.7% |
| $10,000 over 5 years | $17,303 | $17,845Best |
| Top 10 Weight | 39.6% | 25.9%Best |
| Fund Family | Fidelity Investments (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Value |
| Inception | Sep 12, 2016 | Nov 10, 2006 |
Volatility and max drawdown are measured over the window both funds cover: Sep 15, 2016 to Sep 4, 2026 (10 years).
FQAL 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 10 years both funds cover.
FQAL vs VYM Performance
Fidelity Quality Factor ETF (FQAL) is an ETF from Fidelity Investments (US) and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year FQAL returned +17.50% while VYM returned +20.84%. Year to date, FQAL is up 12.69% versus a gain of 14.82% for VYM.
Over three years, FQAL compounded at +19.49% per year against +18.64% for VYM; over five years the annualized figures are +11.59% and +12.28% respectively. Across the full 10-year window we track, FQAL has the edge at +13.72% annualized vs +10.45%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FQAL has been the more volatile fund, with annualized monthly volatility of 14.9% compared with 14.3% 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 -34.1% for FQAL 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 0.89. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FQAL charges 0.15% per year while VYM charges 0.04%. On a $10,000 position that is $15 vs $4 annually, a gap of $11 per year that compounds over a long holding period. On income, FQAL currently yields 1.15% against 2.24% for VYM.
Holdings Overlap
34.6% of FQAL's money is in holdings VYM also owns. 43.1% of VYM's money is in holdings FQAL also owns.
The two portfolios partly overlap.
55 positions in common, counted across the 126 positions we hold weights for in FQAL and 603 in VYM, against full books of 130 and 613.
What only one of them owns
Our book lists 515 positions for VYM that do not appear in our book for FQAL (54.3% of the fund), and 68 for FQAL that do not appear in VYM (65.1%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in FQAL | Weight in VYM | Difference |
|---|---|---|---|
| AVGOBroadcom Inc | 3.39% | 7.29% | 3.90% |
| JPMJpmorgan Chase | 1.86% | 3.38% | 1.52% |
| JNJJohnson & Johnson - Common | 1.29% | 2.54% | 1.25% |
| XOMExxon Mobil Corp. | 1.04% | 2.36% | 1.32% |
| CSCOCisco Systems Inc. - Ordinary Shares | 1.42% | 1.93% | 0.51% |
| CATCaterpillar, Inc. | 0.92% | 2.01% | 1.09% |
| ABBVAbbvie Inc. | 1.05% | 1.85% | 0.80% |
| HDHome Depot Inc/The | 1.13% | 1.46% | 0.33% |
| MRKMerck & Company Inc | 0.87% | 1.32% | 0.45% |
| PGProcter & Gamble Company | 0.71% | 1.42% | 0.71% |
43.1% of VYM is already inside FQAL.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, FQAL or VYM?
FQAL has an expense ratio of 0.15% while VYM charges 0.04%. VYM is the cheaper option, by $11 a year on a $10,000 investment.
Which performed better, FQAL or VYM?
Over the past year FQAL returned +17.50% vs +20.84% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (10 years), FQAL annualized +13.72% vs +10.45% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FQAL or VYM?
FQAL has been the more volatile fund at 14.9% annualized versus 14.3% for VYM. Worst drawdown: FQAL -34.1% vs VYM -35.7%.
Should I hold both FQAL and VYM?
FQAL and VYM have a monthly-return correlation of 0.89, 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 FQAL and VYM?
43.1% of VYM's money is in holdings FQAL also owns. 43.1% of VYM's is in holdings FQAL also owns. They hold 55 positions in common, counted across the 126 positions we hold weights for in FQAL and 603 in VYM.
Which pays a higher dividend, FQAL or VYM?
FQAL yields 1.15% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.
Is VYM better than FQAL?
VYM has a lower expense ratio. FQAL led over 3Y and the full window, VYM over 1Y and 5Y. VYM is less concentrated, with 25.9% of the fund in its ten largest positions against 39.6%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.