FXN vs VYM
First Trust Energy AlphaDEX Fund vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. FXN delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | FXN | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.63% | 0.04% | |
| AUM | $372M | $79.0B | |
| Dividend Yield | 1.83% | 2.86% | |
| Holdings | 38 | 568 | |
| YTD Return | +35.93% | +16.16% | |
| 1Y Return | +53.11% | +26.05% | |
| 3Y Return (annualized) | +11.39% | +18.43% | |
| 5Y Return (annualized) | +19.51% | +12.21% | |
| Volatility (annualized) | 34.8% | 14.6% | |
| Max Drawdown | -88.6% | -58.8% | |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | May 8, 2007 | Nov 10, 2006 |
FXN vs VYM Performance
First Trust Energy AlphaDEX Fund (FXN) 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 FXN returned +53.11% while VYM returned +26.05%. Year to date, FXN is up 35.93% versus a gain of 16.16% for VYM.
Over three years, FXN compounded at +11.39% per year against +18.43% for VYM; over five years the annualized figures are +19.51% and +12.21% respectively. Across the full 19-year window we track, VYM has the edge at +7.09% annualized vs +1.37%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FXN has been the more volatile fund, with annualized monthly volatility of 34.8% 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 -88.6% for FXN 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 0.66. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FXN charges 0.63% per year while VYM charges 0.04%. On a $10,000 position that is $63 vs $4 annually, a gap of $59 per year that compounds over a long holding period. On income, FXN currently yields 1.83% against 2.86% for VYM.
Holdings Overlap
FXN and VYM share 30 holdings out of 567 unique holdings combined, representing a 8.8% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FXN or VYM?
FXN has an expense ratio of 0.63% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $59 per year of difference.
Which performed better, FXN or VYM?
Over the past year FXN returned +53.11% vs +26.05% for VYM, so FXN leads on 1-year performance. Over the longest common window we track (19 years), FXN annualized +1.37% vs +7.09% for VYM. Past performance does not guarantee future results.
Which is riskier, FXN or VYM?
FXN has been the more volatile fund at 34.8% annualized versus 14.6% for VYM. Worst drawdown: FXN -88.6% vs VYM -58.8%.
Should I hold both FXN and VYM?
FXN and VYM have a monthly-return correlation of 0.66, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FXN and VYM?
FXN and VYM share 30 common holdings with a 8.8% weight overlap. Combined, they hold 567 unique securities.
Which pays a higher dividend, FXN or VYM?
FXN yields 1.83% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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