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

MetricFVCVYMWinner
Expense Ratio0.87%0.04%
AUM$104M$79.0B
Dividend Yield1.96%2.86%
Holdings6568
YTD Return+13.09%+15.80%
1Y Return+18.82%+26.12%
3Y Return (annualized)+9.22%+18.25%
5Y Return (annualized)+4.25%+12.51%
Volatility (annualized)14.8%14.6%
Max Drawdown-31.0%-58.8%
Fund FamilyFirst Trust Portfolios (US)Vanguard (US)
CategoryEquityEquity
InceptionMar 8, 2016Nov 10, 2006

FVC vs VYM Performance

First Trust Dorsey Wright Dynamic Focus 5 ETF (FVC) 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 FVC returned +18.82% while VYM returned +26.12%. Year to date, FVC is up 13.09% versus a gain of 15.80% for VYM.

Over three years, FVC compounded at +9.22% per year against +18.25% for VYM; over five years the annualized figures are +4.25% and +12.51% respectively. Across the full 10-year window we track, FVC has the edge at +8.04% annualized vs +7.07%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

FVC has been the more volatile fund, with annualized monthly volatility of 14.8% 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 -31.0% for FVC 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 0.78. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

FVC charges 0.87% per year while VYM charges 0.04%. On a $10,000 position that is $87 vs $4 annually, a gap of $83 per year that compounds over a long holding period. On income, FVC currently yields 1.96% against 2.86% for VYM.

Holdings Overlap

0.0%overlap

FVC and VYM share 0 holdings out of 563 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, FVC or VYM?

FVC has an expense ratio of 0.87% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $83 per year of difference.

Which performed better, FVC or VYM?

Over the past year FVC returned +18.82% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (10 years), FVC annualized +8.04% vs +7.07% for VYM. Past performance does not guarantee future results.

Which is riskier, FVC or VYM?

FVC has been the more volatile fund at 14.8% annualized versus 14.6% for VYM. Worst drawdown: FVC -31.0% vs VYM -58.8%.

Should I hold both FVC and VYM?

FVC and VYM have a monthly-return correlation of 0.78, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between FVC and VYM?

FVC and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 563 unique securities.

Which pays a higher dividend, FVC or VYM?

FVC yields 1.96% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.

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