FXH vs VYM
First Trust Health Care AlphaDEX Fund vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. FXH delivered stronger 1-year returns. VYM offers more diversification with 616 holdings.
Side-by-Side Comparison
| Metric | FXH | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.61% | 0.04% | |
| AUM | $1.1B | $81.6B | |
| Dividend Yield | 0.81% | 2.24% | |
| Holdings | 74 | 616 | |
| YTD Return | +18.11% | +15.60% | |
| 1Y Return | +27.97% | +23.48% | |
| 3Y Return (annualized) | +10.19% | +19.07% | |
| 5Y Return (annualized) | +2.44% | +12.50% | |
| Volatility (annualized) | 16.3% | 14.6% | |
| Max Drawdown | -43.7% | -58.8% | |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | May 8, 2007 | Nov 10, 2006 |
FXH vs VYM Performance
First Trust Health Care AlphaDEX Fund (FXH) 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 FXH returned +27.97% while VYM returned +23.48%. Year to date, FXH is up 18.11% versus a gain of 15.60% for VYM.
Over three years, FXH compounded at +10.19% per year against +19.07% for VYM; over five years the annualized figures are +2.44% and +12.50% respectively. Across the full 19-year window we track, FXH has the edge at +10.53% annualized vs +7.05%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FXH has been the more volatile fund, with annualized monthly volatility of 16.3% 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 -43.7% for FXH 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 0.72. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FXH charges 0.61% per year while VYM charges 0.04%. On a $10,000 position that is $61 vs $4 annually, a gap of $57 per year that compounds over a long holding period. On income, FXH currently yields 0.81% against 2.24% for VYM.
Holdings Overlap
FXH and VYM share 16 holdings out of 660 unique holdings combined, representing a 6.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FXH or VYM?
FXH has an expense ratio of 0.61% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $57 per year of difference.
Which performed better, FXH or VYM?
Over the past year FXH returned +27.97% vs +23.48% for VYM, so FXH leads on 1-year performance. Over the longest common window we track (19 years), FXH annualized +10.53% vs +7.05% for VYM. Past performance does not guarantee future results.
Which is riskier, FXH or VYM?
FXH has been the more volatile fund at 16.3% annualized versus 14.6% for VYM. Worst drawdown: FXH -43.7% vs VYM -58.8%.
Should I hold both FXH and VYM?
FXH and VYM have a monthly-return correlation of 0.72, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FXH and VYM?
FXH and VYM share 16 common holdings with a 6.0% weight overlap. Combined, they hold 660 unique securities.
Which pays a higher dividend, FXH or VYM?
FXH yields 0.81% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.
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