FQAL vs VYM
Fidelity Quality Factor ETF 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 558 holdings.
Side-by-Side Comparison
| Metric | FQAL | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.15% | 0.04% | |
| AUM | $1.4B | $79.0B | |
| Dividend Yield | 1.17% | 2.86% | |
| Holdings | 129 | 568 | |
| YTD Return | +13.77% | +16.78% | |
| 1Y Return | +18.87% | +24.43% | |
| 3Y Return (annualized) | +20.14% | +18.60% | |
| 5Y Return (annualized) | +11.96% | +12.30% | |
| Volatility (annualized) | 15.0% | 14.6% | |
| Max Drawdown | -34.1% | -58.8% | |
| Fund Family | Fidelity Investments (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Sep 12, 2016 | Nov 10, 2006 |
FQAL vs VYM Performance
Fidelity Quality Factor ETF (FQAL) is a ETF from Fidelity Investments (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year FQAL returned +18.87% while VYM returned +24.43%. Year to date, FQAL is up 13.77% versus a gain of 16.78% for VYM.
Over three years, FQAL compounded at +20.14% per year against +18.60% for VYM; over five years the annualized figures are +11.96% and +12.30% respectively. Across the full 10-year window we track, FQAL has the edge at +13.92% annualized vs +7.11%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FQAL has been the more volatile fund, with annualized monthly volatility of 15.0% 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 -34.1% for FQAL 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 0.90. They move almost in lockstep, so holding both mostly duplicates the same exposure.
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 1.17% against 2.86% for VYM.
Holdings Overlap
FQAL and VYM share 53 holdings out of 630 unique holdings combined, representing a 28.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
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. On a $10,000 investment, that is $11 per year of difference.
Which performed better, FQAL or VYM?
Over the past year FQAL returned +18.87% vs +24.43% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (10 years), FQAL annualized +13.92% vs +7.11% for VYM. Past performance does not guarantee future results.
Which is riskier, FQAL or VYM?
FQAL has been the more volatile fund at 15.0% annualized versus 14.6% for VYM. Worst drawdown: FQAL -34.1% vs VYM -58.8%.
Should I hold both FQAL and VYM?
FQAL and VYM have a monthly-return correlation of 0.90, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between FQAL and VYM?
FQAL and VYM share 53 common holdings with a 28.3% weight overlap. Combined, they hold 630 unique securities.
Which pays a higher dividend, FQAL or VYM?
FQAL yields 1.17% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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