FXED vs VYM
Sound Enhanced Fixed Income 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 558 holdings.
Side-by-Side Comparison
| Metric | FXED | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 1.89% | 0.04% | |
| AUM | $40M | $79.0B | |
| Dividend Yield | 4.31% | 2.86% | |
| Holdings | 60 | 568 | |
| YTD Return | -0.21% | +16.53% | |
| 1Y Return | +0.79% | +25.03% | |
| 3Y Return (annualized) | +6.04% | +18.54% | |
| 5Y Return (annualized) | +2.23% | +12.25% | |
| Volatility (annualized) | 9.7% | 14.6% | |
| Max Drawdown | -19.7% | -58.8% | |
| Fund Family | Sound Income Strategies | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Dec 30, 2020 | Nov 10, 2006 |
FXED vs VYM Performance
Sound Enhanced Fixed Income ETF (FXED) is a ETF from Sound Income Strategies and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year FXED returned +0.79% while VYM returned +25.03%. Year to date, FXED is down 0.21% versus a gain of 16.53% for VYM.
Over three years, FXED compounded at +6.04% per year against +18.54% for VYM; over five years the annualized figures are +2.23% and +12.25% respectively. Across the full 6-year window we track, VYM has the edge at +7.10% annualized vs +3.25%. 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 9.7% for FXED. 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 -19.7% for FXED 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 0.79. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FXED charges 1.89% per year while VYM charges 0.04%. On a $10,000 position that is $189 vs $4 annually, a gap of $185 per year that compounds over a long holding period. On income, FXED currently yields 4.31% against 2.86% for VYM.
Holdings Overlap
FXED and VYM share 0 holdings out of 615 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, FXED or VYM?
FXED has an expense ratio of 1.89% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $185 per year of difference.
Which performed better, FXED or VYM?
Over the past year FXED returned +0.79% vs +25.03% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (6 years), FXED annualized +3.25% vs +7.10% for VYM. Past performance does not guarantee future results.
Which is riskier, FXED or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 9.7% for FXED. Worst drawdown: FXED -19.7% vs VYM -58.8%.
Should I hold both FXED and VYM?
FXED and VYM have a monthly-return correlation of 0.79, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FXED and VYM?
FXED and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 615 unique securities.
Which pays a higher dividend, FXED or VYM?
FXED yields 4.31% while VYM yields 2.86%, so FXED currently pays the higher dividend yield.
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