FSIG 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

MetricFSIGVYMWinner
Expense Ratio0.44%0.04%
AUM$1.5B$79.0B
Dividend Yield4.80%2.86%
Holdings322568
YTD Return+0.75%+16.16%
1Y Return+2.62%+26.05%
3Y Return (annualized)+5.16%+18.43%
5Y Return (annualized)-+12.21%
Volatility (annualized)3.2%14.6%
Max Drawdown-6.9%-58.8%
Fund FamilyFirst Trust Portfolios (US)Vanguard (US)
CategoryFixed IncomeEquity
InceptionNov 17, 2021Nov 10, 2006

FSIG vs VYM Performance

First Trust Limited Duration Investment Grade Corporate ETF (FSIG) 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 FSIG returned +2.62% while VYM returned +26.05%. Year to date, FSIG is up 0.75% versus a gain of 16.16% for VYM.

Over three years, FSIG compounded at +5.16% per year against +18.43% for VYM. Across the full 5-year window we track, VYM has the edge at +7.09% annualized vs +2.68%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 3.2% for FSIG. 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 -6.9% for FSIG 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 0.57. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

FSIG charges 0.44% per year while VYM charges 0.04%. On a $10,000 position that is $44 vs $4 annually, a gap of $40 per year that compounds over a long holding period. On income, FSIG currently yields 4.80% against 2.86% for VYM.

Holdings Overlap

0.0%overlap

FSIG and VYM share 0 holdings out of 785 unique holdings combined, representing a 0.0% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Frequently Asked Questions

Which is cheaper, FSIG or VYM?

FSIG has an expense ratio of 0.44% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $40 per year of difference.

Which performed better, FSIG or VYM?

Over the past year FSIG returned +2.62% vs +26.05% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (5 years), FSIG annualized +2.68% vs +7.09% for VYM. Past performance does not guarantee future results.

Which is riskier, FSIG or VYM?

VYM has been the more volatile fund at 14.6% annualized versus 3.2% for FSIG. Worst drawdown: FSIG -6.9% vs VYM -58.8%.

Should I hold both FSIG and VYM?

FSIG and VYM have a monthly-return correlation of 0.57, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between FSIG and VYM?

FSIG and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 785 unique securities.

Which pays a higher dividend, FSIG or VYM?

FSIG yields 4.80% while VYM yields 2.86%, so FSIG currently pays the higher dividend yield.

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