FRTY vs VYM

Quick Verdict

VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.

Lower Fees: VYMHigher Returns: VYMMore Diversified: VYM

Side-by-Side Comparison

MetricFRTYVYMWinner
Expense Ratio0.60%0.04%
AUM$140M$79.0B
Dividend Yield0.17%2.86%
Holdings41568
YTD Return+8.72%+16.16%
1Y Return+15.05%+26.05%
3Y Return (annualized)+23.23%+18.43%
5Y Return (annualized)+2.93%+12.21%
Volatility (annualized)23.1%14.6%
Max Drawdown-53.1%-58.8%
Fund FamilyAlgerVanguard (US)
CategoryEquityEquity
InceptionFeb 26, 2021Nov 10, 2006

FRTY vs VYM Performance

Alger Mid Cap 40 ETF (FRTY) is a ETF from Alger and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year FRTY returned +15.05% while VYM returned +26.05%. Year to date, FRTY is up 8.72% versus a gain of 16.16% for VYM.

Over three years, FRTY compounded at +23.23% per year against +18.43% for VYM; over five years the annualized figures are +2.93% and +12.21% respectively. Across the full 5-year window we track, VYM has the edge at +7.09% annualized vs +3.33%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

FRTY has been the more volatile fund, with annualized monthly volatility of 23.1% 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 -53.1% for FRTY 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 0.49. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

FRTY charges 0.60% per year while VYM charges 0.04%. On a $10,000 position that is $60 vs $4 annually, a gap of $56 per year that compounds over a long holding period. On income, FRTY currently yields 0.17% against 2.86% for VYM.

Holdings Overlap

0.1%overlap

FRTY and VYM share 1 holdings out of 597 unique holdings combined, representing a 0.1% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in FRTYWeight in VYMDifference
TPR1.10%0.14%0.96%

Frequently Asked Questions

Which is cheaper, FRTY or VYM?

FRTY has an expense ratio of 0.60% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $56 per year of difference.

Which performed better, FRTY or VYM?

Over the past year FRTY returned +15.05% vs +26.05% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (5 years), FRTY annualized +3.33% vs +7.09% for VYM. Past performance does not guarantee future results.

Which is riskier, FRTY or VYM?

FRTY has been the more volatile fund at 23.1% annualized versus 14.6% for VYM. Worst drawdown: FRTY -53.1% vs VYM -58.8%.

Should I hold both FRTY and VYM?

FRTY and VYM have a monthly-return correlation of 0.49, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between FRTY and VYM?

FRTY and VYM share 1 common holdings with a 0.1% weight overlap. Combined, they hold 597 unique securities.

Which pays a higher dividend, FRTY or VYM?

FRTY yields 0.17% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.

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