FXU vs VYM

FXU vs VYM

Which is better, FXU or VYM?

Mid Cap Value against Large Cap Value.

VYM has a lower expense ratio. FXU led over 3Y, VYM over 1Y, 5Y and the full window. VYM is less concentrated, with 25.9% of the fund in its ten largest positions against 41.0%.

Lower Fees: VYMHigher Returns: splitLess Concentrated: VYM

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

MetricFXUVYM
Expense Ratio0.61%0.04%Best
AUM$798M$81.6B
Dividend Yield2.19%2.24%
Holdings82613
YTD Return+4.50%+15.29%Best
1Y Return+9.79%+22.23%Best
3Y Return (annualized)+19.50%Best+18.81%
5Y Return (annualized)+10.64%+12.14%Best
Volatility (annualized)14.5%Best14.7%
Max Drawdown-51.5%Best-58.8%
$10,000 over 5 years$16,579$17,734Best
Top 10 Weight41.0%25.9%Best
Fund FamilyFirst Trust Portfolios (US)Vanguard (US)
CategoryEquityEquity
StyleMid Cap ValueLarge Cap Value
InceptionMay 8, 2007Nov 10, 2006

Volatility and max drawdown are measured over the window both funds cover: May 10, 2007 to Sep 3, 2026 (19.3 years).

FXU 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.

FXU vs VYM Performance

First Trust Utilities AlphaDEX Fund (FXU) 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 FXU returned +9.79% while VYM returned +22.23%. Year to date, FXU is up 4.50% versus a gain of 15.29% for VYM.

Over three years, FXU compounded at +19.50% per year against +18.81% for VYM; over five years the annualized figures are +10.64% and +12.14% respectively. Across the full 19-year window we track, VYM has the edge at +6.81% annualized vs +5.25%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VYM has been the more volatile fund, with annualized monthly volatility of 14.7% compared with 14.5% for FXU. 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 -51.5% for FXU 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 0.70. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

FXU 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, FXU currently yields 2.19% against 2.24% for VYM.

Holdings Overlap

FXU already in VYM88.0%
VYM already in FXU4.5%

88.0% of FXU's money is in holdings VYM also owns. 4.5% of VYM's money is in holdings FXU also owns.

Most of FXU is already inside VYM. Owning both mostly buys the same companies twice.

33 positions in common, counted across the 40 positions we hold weights for in FXU and 603 in VYM, against full books of 82 and 613.

What only one of them owns

Our book lists 537 positions for VYM that do not appear in our book for FXU (92.9% of the fund), and 5 for FXU that do not appear in VYM (10.0%).

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

StockWeight in FXUWeight in VYMDifference
UGIUgi Corp4.41%0.03%4.38%
NFGNational Fuel Gas Co4.38%0.03%4.35%
ESEversource Energ4.30%0.11%4.19%
EXCExelon4.21%0.20%4.01%
EDConsolidated Edison Inc4.20%0.17%4.03%
AESAes Corporation4.30%0.04%4.26%
EIXEdison Intl3.93%0.12%3.81%
DUKDuke Energy Corp3.34%0.41%2.93%
WTRGEssential Utilities Inc - Common3.54%0.05%3.49%
PPLPpl Corp (Utilities)3.30%0.11%3.19%

88.0% of FXU 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.

FXUVYM

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Frequently Asked Questions

Which is cheaper, FXU or VYM?

FXU has an expense ratio of 0.61% while VYM charges 0.04%. VYM is the cheaper option, by $57 a year on a $10,000 investment.

Which performed better, FXU or VYM?

Over the past year FXU returned +9.79% vs +22.23% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (19 years), FXU annualized +5.25% vs +6.81% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, FXU or VYM?

VYM has been the more volatile fund at 14.7% annualized versus 14.5% for FXU. Worst drawdown: FXU -51.5% vs VYM -58.8%.

Should I hold both FXU and VYM?

FXU and VYM have a monthly-return correlation of 0.70, 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 FXU and VYM?

88.0% of FXU's money is in holdings VYM also owns. 4.5% of VYM's is in holdings FXU also owns. They hold 33 positions in common, counted across the 40 positions we hold weights for in FXU and 603 in VYM.

Which pays a higher dividend, FXU or VYM?

FXU yields 2.19% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.

Is VYM better than FXU?

VYM has a lower expense ratio. FXU led over 3Y, VYM over 1Y, 5Y and the full window. VYM is less concentrated, with 25.9% of the fund in its ten largest positions against 41.0%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.