FVAL vs VYM

Quick Verdict

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

Lower Fees: VYMHigher Returns: FVALMore Diversified: VYM

Side-by-Side Comparison

MetricFVALVYMWinner
Expense Ratio0.15%0.04%
AUM$1.3B$79.0B
Dividend Yield1.61%2.86%
Holdings129568
YTD Return+15.81%+15.80%
1Y Return+30.64%+26.12%
3Y Return (annualized)+20.40%+18.25%
5Y Return (annualized)+13.02%+12.51%
Volatility (annualized)16.4%14.6%
Max Drawdown-37.7%-58.8%
Fund FamilyFidelity Investments (US)Vanguard (US)
CategoryEquityEquity
InceptionSep 12, 2016Nov 10, 2006

FVAL vs VYM Performance

Fidelity Value Factor ETF (FVAL) is a ETF from Fidelity Investments (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year FVAL returned +30.64% while VYM returned +26.12%. Year to date, FVAL is up 15.81% versus a gain of 15.80% for VYM.

Over three years, FVAL compounded at +20.40% per year against +18.25% for VYM; over five years the annualized figures are +13.02% and +12.51% respectively. Across the full 10-year window we track, FVAL has the edge at +13.90% annualized vs +7.07%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

FVAL has been the more volatile fund, with annualized monthly volatility of 16.4% 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 -37.7% for FVAL 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 0.94. They move almost in lockstep, so holding both mostly duplicates the same exposure.

Fees and Cost Over Time

FVAL charges 0.15% per year while VYM charges 0.04%. On a $10,000 position that is $15 vs $4 annually, a gap of $11 per year that compounds over a long holding period. On income, FVAL currently yields 1.61% against 2.86% for VYM.

Holdings Overlap

28.5%overlap

FVAL and VYM share 64 holdings out of 620 unique holdings combined, representing a 28.5% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in FVALWeight in VYMDifference
AVGO3.40%6.47%3.07%
JNJ1.38%2.62%1.24%
XOM1.00%2.83%1.83%
WMTProProPro
ABBVProProPro
CATProProPro
HDProProPro
PGProProPro
BACProProPro
UNHProProPro
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Frequently Asked Questions

Which is cheaper, FVAL or VYM?

FVAL has an expense ratio of 0.15% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $11 per year of difference.

Which performed better, FVAL or VYM?

Over the past year FVAL returned +30.64% vs +26.12% for VYM, so FVAL leads on 1-year performance. Over the longest common window we track (10 years), FVAL annualized +13.90% vs +7.07% for VYM. Past performance does not guarantee future results.

Which is riskier, FVAL or VYM?

FVAL has been the more volatile fund at 16.4% annualized versus 14.6% for VYM. Worst drawdown: FVAL -37.7% vs VYM -58.8%.

Should I hold both FVAL and VYM?

FVAL and VYM have a monthly-return correlation of 0.94, 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 FVAL and VYM?

FVAL and VYM share 64 common holdings with a 28.5% weight overlap. Combined, they hold 620 unique securities.

Which pays a higher dividend, FVAL or VYM?

FVAL yields 1.61% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.

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