FXU vs VYM
First Trust Utilities AlphaDEX Fund vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 616 holdings.
Side-by-Side Comparison
| Metric | FXU | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.61% | 0.04% | |
| AUM | $809M | $81.6B | |
| Dividend Yield | 2.19% | 2.24% | |
| Holdings | 41 | 616 | |
| YTD Return | +7.96% | +16.42% | |
| 1Y Return | +11.10% | +24.22% | |
| 3Y Return (annualized) | +20.01% | +19.03% | |
| 5Y Return (annualized) | +11.37% | +12.21% | |
| Volatility (annualized) | 14.5% | 14.6% | |
| Max Drawdown | -51.5% | -58.8% | |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | May 8, 2007 | Nov 10, 2006 |
FXU vs VYM Performance
First Trust Utilities AlphaDEX Fund (FXU) 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 FXU returned +11.10% while VYM returned +24.22%. Year to date, FXU is up 7.96% versus a gain of 16.42% for VYM.
Over three years, FXU compounded at +20.01% per year against +19.03% for VYM; over five years the annualized figures are +11.37% and +12.21% respectively. Across the full 19-year window we track, VYM has the edge at +7.10% annualized vs +5.45%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% 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 worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.71. 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 and VYM share 33 holdings out of 610 unique holdings combined, representing a 4.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
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. On a $10,000 investment, that is $57 per year of difference.
Which performed better, FXU or VYM?
Over the past year FXU returned +11.10% vs +24.22% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (19 years), FXU annualized +5.45% vs +7.10% for VYM. Past performance does not guarantee future results.
Which is riskier, FXU or VYM?
VYM has been the more volatile fund at 14.6% 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 0.71, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FXU and VYM?
FXU and VYM share 33 common holdings with a 4.5% weight overlap. Combined, they hold 610 unique securities.
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.
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