FXO vs VYM
First Trust Financials AlphaDEX Fund vs Vanguard High Dividend Yield ETF
Which is better, FXO or VYM?
Mid Cap Value against Large Cap Value.
VYM has a lower expense ratio. FXO led over 3Y and the full window, VYM over 1Y and 5Y. FXO is less concentrated, with 18.1% of the fund in its ten largest positions against 25.9%.
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 | FXO | VYM |
|---|---|---|
| Expense Ratio | 0.60% | 0.04%Best |
| AUM | $1.1B | $81.6B |
| Dividend Yield | 1.99% | 2.24% |
| Holdings | 210 | 613 |
| YTD Return | +11.71% | +15.29%Best |
| 1Y Return | +15.99% | +22.23%Best |
| 3Y Return (annualized) | +22.13%Best | +18.81% |
| 5Y Return (annualized) | +10.78% | +12.14%Best |
| Volatility (annualized) | 21.4% | 14.7%Best |
| Max Drawdown | -72.2% | -58.8%Best |
| $10,000 over 5 years | $16,684 | $17,734Best |
| Top 10 Weight | 18.1%Best | 25.9% |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Mid Cap Value | Large Cap Value |
| Inception | May 8, 2007 | Nov 10, 2006 |
Volatility and max drawdown are measured over the window both funds cover: May 10, 2007 to Sep 3, 2026 (19.3 years).
FXO 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 19.3 years both funds cover.
FXO vs VYM Performance
First Trust Financials AlphaDEX Fund (FXO) is an ETF from First Trust Portfolios (US) and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year FXO returned +15.99% while VYM returned +22.23%. Year to date, FXO is up 11.71% versus a gain of 15.29% for VYM.
Over three years, FXO compounded at +22.13% per year against +18.81% for VYM; over five years the annualized figures are +10.78% and +12.14% respectively. Across the full 19-year window we track, FXO has the edge at +7.17% annualized vs +6.81%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FXO has been the more volatile fund, with annualized monthly volatility of 21.4% compared with 14.7% 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 -72.2% for FXO and -58.8% 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 0.89. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FXO 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, FXO currently yields 1.99% against 2.24% for VYM.
Holdings Overlap
70.6% of FXO's money is in holdings VYM also owns. 10.5% of VYM's money is in holdings FXO also owns.
Most of FXO is already inside VYM. Owning both mostly buys the same companies twice.
75 positions in common, counted across the 104 positions we hold weights for in FXO and 603 in VYM, against full books of 210 and 613.
What only one of them owns
Our book lists 496 positions for VYM that do not appear in our book for FXO (87.0% of the fund), and 25 for FXO that do not appear in VYM (23.6%).
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.
Top Shared Holdings
| Stock | Weight in FXO | Weight in VYM | Difference |
|---|---|---|---|
| MKTXMarketaxess Holdings Inc?.? | 2.22% | 0.02% | 2.20% |
| BACBank of America Corp.: Financials | 0.66% | 1.56% | 0.90% |
| CCitigroup Inc. | 1.16% | 0.94% | 0.22% |
| LNCLincoln National Corp. | 2.06% | 0.03% | 2.03% |
| TRVThe Travelers Cos, Inc. | 1.80% | 0.29% | 1.51% |
| ALLAllstate Corp. | 1.72% | 0.25% | 1.47% |
| FDSFactset Research Systems Inc. | 1.87% | 0.03% | 1.84% |
| HIGHartford Financial Services Group Inc. | 1.68% | 0.15% | 1.53% |
| AIGAmerican International Gr | 1.67% | 0.16% | 1.51% |
| FAFFirst American Corporation | 1.69% | 0.03% | 1.66% |
70.6% of FXO is already inside VYM.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, FXO or VYM?
FXO has an expense ratio of 0.60% while VYM charges 0.04%. VYM is the cheaper option, by $56 a year on a $10,000 investment.
Which performed better, FXO or VYM?
Over the past year FXO returned +15.99% vs +22.23% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (19 years), FXO annualized +7.17% vs +6.81% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FXO or VYM?
FXO has been the more volatile fund at 21.4% annualized versus 14.7% for VYM. Worst drawdown: FXO -72.2% vs VYM -58.8%.
Should I hold both FXO and VYM?
FXO and VYM have a monthly-return correlation of 0.89, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between FXO and VYM?
70.6% of FXO's money is in holdings VYM also owns. 10.5% of VYM's is in holdings FXO also owns. They hold 75 positions in common, counted across the 104 positions we hold weights for in FXO and 603 in VYM.
Which pays a higher dividend, FXO or VYM?
FXO yields 1.99% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.
Is VYM better than FXO?
VYM has a lower expense ratio. FXO led over 3Y and the full window, VYM over 1Y and 5Y. FXO is less concentrated, with 18.1% of the fund in its ten largest positions against 25.9%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.