FREL vs VYM
Fidelity MSCI Real Estate Index ETF vs Vanguard High Dividend Yield ETF
Which is better, FREL or VYM?
All Cap Blend against Large Cap Value.
VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window. VYM is less concentrated, with 26.1% of the fund in its ten largest positions against 48.5%.
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 | FREL | VYM |
|---|---|---|
| Expense Ratio | 0.08% | 0.04%Best |
| AUM | $1.5B | $81.6B |
| Dividend Yield | 3.27% | 2.22% |
| Holdings | 126 | 613 |
| YTD Return | +7.70% | +12.29%Best |
| 1Y Return | +5.30% | +16.61%Best |
| 3Y Return (annualized) | +9.10% | +17.42%Best |
| 5Y Return (annualized) | +1.27% | +12.12%Best |
| Volatility (annualized) | 17.1% | 13.9%Best |
| Max Drawdown | -43.5% | -35.7%Best |
| $10,000 over 5 years | $10,651 | $17,718Best |
| Top 10 Weight | 48.5% | 26.1%Best |
| Fund Family | Fidelity Investments (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | All Cap Blend | Large Cap Value |
| Inception | Feb 2, 2015 | Nov 10, 2006 |
Volatility and max drawdown are measured over the window both funds cover: Feb 5, 2015 to Sep 17, 2026 (11.6 years).
FREL 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 11.6 years both funds cover.
FREL vs VYM Performance
Fidelity MSCI Real Estate Index ETF (FREL) is an ETF from Fidelity Investments (US) and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year FREL returned +5.30% while VYM returned +16.61%. Year to date, FREL is up 7.70% versus a gain of 12.29% for VYM.
Over three years, FREL compounded at +9.10% per year against +17.42% for VYM; over five years the annualized figures are +1.27% and +12.12% respectively. Across the full 12-year window we track, VYM has the edge at +9.04% annualized vs +2.87%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FREL has been the more volatile fund, with annualized monthly volatility of 17.1% compared with 13.9% 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 -43.5% for FREL 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 0.78. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FREL charges 0.08% per year while VYM charges 0.04%. On a $10,000 position that is $8 vs $4 annually, a gap of $4 per year that compounds over a long holding period. On income, FREL currently yields 3.27% against 2.22% for VYM.
Holdings Overlap
We hold position weights for 123 holdings in FREL and 557 in VYM, totalling 99.9% and 99.2% of the two funds. That is not enough of VYM to divide by, so no overlap percentage is shown here. Within what we can see, 1 positions appear in both.
1 positions in common, counted across the 123 positions we hold weights for in FREL and 557 in VYM, against full books of 126 and 613.
What only one of them owns
Measured across the 123 and 557 positions we hold weights for.
VYM holds 528 positions FREL does not, 97.1% of the fund.
Largest: AVGO 7.35%, JPM 3.82%, XOM 2.63%, JNJ 2.51%, CSCO 1.86%
Top Shared Holdings
| Stock | Weight in FREL | Weight in VYM | Difference |
|---|---|---|---|
| AGNTAgnt Inc | 0.03% | 0.00% | 0.03% |
You are not choosing between two funds in isolation.
Whichever of FREL 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, FREL or VYM?
FREL has an expense ratio of 0.08% while VYM charges 0.04%. VYM is the cheaper option, by $4 a year on a $10,000 investment.
Which performed better, FREL or VYM?
Over the past year FREL returned +5.30% vs +16.61% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (12 years), FREL annualized +2.87% vs +9.04% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FREL or VYM?
FREL has been the more volatile fund at 17.1% annualized versus 13.9% for VYM. Worst drawdown: FREL -43.5% vs VYM -35.7%.
Should I hold both FREL and VYM?
FREL and VYM have a monthly-return correlation of 0.78, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, FREL or VYM?
FREL yields 3.27% while VYM yields 2.22%, so FREL currently pays the higher dividend yield.
Is VYM better than FREL?
VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window. VYM is less concentrated, with 26.1% of the fund in its ten largest positions against 48.5%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.