FXED vs VYM
Sound Enhanced Fixed Income ETF vs Vanguard High Dividend Yield ETF
Which is better, FXED or VYM?
Diversified Sectoral Bond against Large Cap Value.
VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window. VYM is less concentrated, with 25.9% of the fund in its ten largest positions against 27.3%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | FXED | VYM |
|---|---|---|
| Expense Ratio | 1.89% | 0.04%Best |
| AUM | $39M | $81.6B |
| Dividend Yield | 7.42% | 2.24% |
| Holdings | 67 | 613 |
| YTD Return | -0.50% | +14.82%Best |
| 1Y Return | -1.14% | +20.84%Best |
| 3Y Return (annualized) | +5.90% | +18.64%Best |
| 5Y Return (annualized) | +2.08% | +12.28%Best |
| Volatility (annualized) | 9.6%Best | 13.3% |
| Max Drawdown | -19.7% | -15.8%Best |
| $10,000 over 5 years | $11,084 | $17,845Best |
| Top 10 Weight | 27.3% | 25.9%Best |
| Fund Family | Sound Income Strategies | Vanguard (US) |
| Category | Fixed Income | Equity |
| Style | Diversified Sectoral Bond | Large Cap Value |
| Inception | Dec 30, 2020 | Nov 10, 2006 |
Volatility and max drawdown are measured over the window both funds cover: Dec 31, 2020 to Sep 4, 2026 (5.7 years).
FXED vs VYM growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 5.7 years both funds cover.
FXED vs VYM Performance
Sound Enhanced Fixed Income ETF (FXED) is an ETF from Sound Income Strategies and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year FXED returned -1.14% while VYM returned +20.84%. Year to date, FXED is down 0.50% versus a gain of 14.82% for VYM.
Over three years, FXED compounded at +5.90% per year against +18.64% for VYM; over five years the annualized figures are +2.08% and +12.28% respectively. Across the full 6-year window we track, VYM has the edge at +14.01% annualized vs +3.16%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 13.3% compared with 9.6% 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 -15.8% for VYM. Drawdown depth is what each fund did in the worst stretch of the window measured above.
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 7.42% against 2.24% for VYM.
Holdings Overlap
We hold position weights for 64 holdings in FXED and 602 in VYM, totalling 97.2% and 99.5% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
The two holdings books were reported 49 days apart, FXED as of Aug 18, 2026 and VYM as of Jun 30, 2026, so some of the difference between them is the time between the two reports rather than the funds.
0 positions in common, counted across the 64 positions we hold weights for in FXED and 602 in VYM, against full books of 67 and 613.
What only one of them owns
Our book lists 568 positions for VYM that do not appear in our book for FXED (97.2% of the fund), and 63 for FXED that do not appear in VYM (97.2%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
You are not choosing between two funds in isolation.
Whichever of FXED and VYM you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
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, by $185 a year on a $10,000 investment.
Which performed better, FXED or VYM?
Over the past year FXED returned -1.14% vs +20.84% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (6 years), FXED annualized +3.16% vs +14.01% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FXED or VYM?
VYM has been the more volatile fund at 13.3% annualized versus 9.6% for FXED. Worst drawdown: FXED -19.7% vs VYM -15.8%.
Should I hold both FXED and VYM?
FXED and VYM have a monthly-return correlation of 0.79, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, FXED or VYM?
FXED yields 7.42% while VYM yields 2.24%, so FXED currently pays the higher dividend yield.
Is VYM better than FXED?
VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window. VYM is less concentrated, with 25.9% of the fund in its ten largest positions against 27.3%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.