FUMB vs VYM
First Trust Ultra Short Duration Municipal 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 616 holdings.
Side-by-Side Comparison
| Metric | FUMB | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.29% | 0.04% | |
| AUM | $248M | $81.6B | |
| Dividend Yield | 2.75% | 2.24% | |
| Holdings | 252 | 616 | |
| YTD Return | +1.50% | +15.75% | |
| 1Y Return | +2.19% | +23.85% | |
| 3Y Return (annualized) | +2.91% | +19.14% | |
| 5Y Return (annualized) | +2.00% | +12.45% | |
| Volatility (annualized) | 0.8% | 14.6% | |
| Max Drawdown | -2.7% | -58.8% | |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Nov 1, 2018 | Nov 10, 2006 |
FUMB vs VYM Performance
First Trust Ultra Short Duration Municipal ETF (FUMB) 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 FUMB returned +2.19% while VYM returned +23.85%. Year to date, FUMB is up 1.50% versus a gain of 15.75% for VYM.
Over three years, FUMB compounded at +2.91% per year against +19.14% for VYM; over five years the annualized figures are +2.00% and +12.45% respectively. Across the full 8-year window we track, VYM has the edge at +7.06% annualized vs +1.38%. 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 0.8% for FUMB. 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 -2.7% for FUMB 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 0.28. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FUMB charges 0.29% per year while VYM charges 0.04%. On a $10,000 position that is $29 vs $4 annually, a gap of $25 per year that compounds over a long holding period. On income, FUMB currently yields 2.75% against 2.24% for VYM.
Holdings Overlap
FUMB and VYM share 0 holdings out of 677 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, FUMB or VYM?
FUMB has an expense ratio of 0.29% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $25 per year of difference.
Which performed better, FUMB or VYM?
Over the past year FUMB returned +2.19% vs +23.85% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (8 years), FUMB annualized +1.38% vs +7.06% for VYM. Past performance does not guarantee future results.
Which is riskier, FUMB or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 0.8% for FUMB. Worst drawdown: FUMB -2.7% vs VYM -58.8%.
Should I hold both FUMB and VYM?
FUMB and VYM have a monthly-return correlation of 0.28, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FUMB and VYM?
FUMB and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 677 unique securities.
Which pays a higher dividend, FUMB or VYM?
FUMB yields 2.75% while VYM yields 2.24%, so FUMB currently pays the higher dividend yield.
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