FSCS vs VYM
First Trust SMID Capital Strength 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 613 holdings.
Side-by-Side Comparison
| Metric | FSCS | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.60% | 0.04% | |
| AUM | $61M | $81.6B | |
| Dividend Yield | 0.98% | 2.24% | |
| Holdings | 202 | 613 | |
| YTD Return | +4.71% | +14.18% | |
| 1Y Return | +2.09% | +20.67% | |
| 3Y Return (annualized) | +10.12% | +18.47% | |
| 5Y Return (annualized) | +5.85% | +12.01% | |
| Volatility (annualized) | 19.5% | 14.5% | |
| Max Drawdown | -43.6% | -58.8% | |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jun 20, 2017 | Nov 10, 2006 |
FSCS vs VYM Performance
First Trust SMID Capital Strength ETF (FSCS) 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 FSCS returned +2.09% while VYM returned +20.67%. Year to date, FSCS is up 4.71% versus a gain of 14.18% for VYM.
Over three years, FSCS compounded at +10.12% per year against +18.47% for VYM; over five years the annualized figures are +5.85% and +12.01% respectively. Across the full 9-year window we track, FSCS has the edge at +7.98% annualized vs +6.97%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FSCS has been the more volatile fund, with annualized monthly volatility of 19.5% compared with 14.5% 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 -43.6% for FSCS 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 0.92. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
FSCS 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, FSCS currently yields 0.98% against 2.24% for VYM.
Holdings Overlap
FSCS and VYM share 50 holdings out of 653 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, FSCS or VYM?
FSCS 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, FSCS or VYM?
Over the past year FSCS returned +2.09% vs +20.67% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (9 years), FSCS annualized +7.98% vs +6.97% for VYM. Past performance does not guarantee future results.
Which is riskier, FSCS or VYM?
FSCS has been the more volatile fund at 19.5% annualized versus 14.5% for VYM. Worst drawdown: FSCS -43.6% vs VYM -58.8%.
Should I hold both FSCS and VYM?
FSCS and VYM have a monthly-return correlation of 0.92, 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 FSCS and VYM?
FSCS and VYM share 50 common holdings with a 2.6% weight overlap. Combined, they hold 653 unique securities.
Which pays a higher dividend, FSCS or VYM?
FSCS yields 0.98% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.
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