FXD vs VYM
First Trust Consumer Discretionary AlphaDEX Fund 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 | FXD | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.60% | 0.04% | |
| AUM | $273M | $81.6B | |
| Dividend Yield | 0.60% | 2.24% | |
| Holdings | 113 | 616 | |
| YTD Return | +2.97% | +16.42% | |
| 1Y Return | +6.54% | +24.22% | |
| 3Y Return (annualized) | +9.66% | +19.03% | |
| 5Y Return (annualized) | +3.52% | +12.21% | |
| Volatility (annualized) | 22.4% | 14.6% | |
| Max Drawdown | -65.7% | -58.8% | |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | May 8, 2007 | Nov 10, 2006 |
FXD vs VYM Performance
First Trust Consumer Discretionary AlphaDEX Fund (FXD) 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 FXD returned +6.54% while VYM returned +24.22%. Year to date, FXD is up 2.97% versus a gain of 16.42% for VYM.
Over three years, FXD compounded at +9.66% per year against +19.03% for VYM; over five years the annualized figures are +3.52% and +12.21% respectively. Across the full 19-year window we track, VYM has the edge at +7.10% annualized vs +7.02%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FXD has been the more volatile fund, with annualized monthly volatility of 22.4% 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 -65.7% for FXD 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 0.85. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FXD 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, FXD currently yields 0.60% against 2.24% for VYM.
Holdings Overlap
FXD and VYM share 37 holdings out of 678 unique holdings combined, representing a 3.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FXD or VYM?
FXD 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, FXD or VYM?
Over the past year FXD returned +6.54% vs +24.22% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (19 years), FXD annualized +7.02% vs +7.10% for VYM. Past performance does not guarantee future results.
Which is riskier, FXD or VYM?
FXD has been the more volatile fund at 22.4% annualized versus 14.6% for VYM. Worst drawdown: FXD -65.7% vs VYM -58.8%.
Should I hold both FXD and VYM?
FXD and VYM have a monthly-return correlation of 0.85, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FXD and VYM?
FXD and VYM share 37 common holdings with a 3.1% weight overlap. Combined, they hold 678 unique securities.
Which pays a higher dividend, FXD or VYM?
FXD yields 0.60% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.
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