FXZ vs VYM
First Trust Materials AlphaDEX Fund vs Vanguard High Dividend Yield ETF
Which is better, FXZ or VYM?
Mid Cap Value against Large Cap Value.
VYM has a lower expense ratio. FXZ led over 1Y and the full window, VYM over 3Y and 5Y. VYM is less concentrated, with 25.9% of the fund in its ten largest positions against 44.1%.
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 | FXZ | VYM |
|---|---|---|
| Expense Ratio | 0.64% | 0.04%Best |
| AUM | $400M | $81.6B |
| Dividend Yield | 1.42% | 2.24% |
| Holdings | 80 | 613 |
| YTD Return | +30.25%Best | +14.82% |
| 1Y Return | +42.87%Best | +20.84% |
| 3Y Return (annualized) | +11.23% | +18.64%Best |
| 5Y Return (annualized) | +10.06% | +12.28%Best |
| Volatility (annualized) | 24.6% | 14.7%Best |
| Max Drawdown | -66.0% | -58.8%Best |
| $10,000 over 5 years | $16,149 | $17,845Best |
| Top 10 Weight | 44.1% | 25.9%Best |
| 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 4, 2026 (19.3 years).
FXZ 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.
FXZ vs VYM Performance
First Trust Materials AlphaDEX Fund (FXZ) 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 FXZ returned +42.87% while VYM returned +20.84%. Year to date, FXZ is up 30.25% versus a gain of 14.82% for VYM.
Over three years, FXZ compounded at +11.23% per year against +18.64% for VYM; over five years the annualized figures are +10.06% and +12.28% respectively. Across the full 19-year window we track, FXZ has the edge at +8.37% annualized vs +6.79%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FXZ has been the more volatile fund, with annualized monthly volatility of 24.6% 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 -66.0% for FXZ 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 0.83. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FXZ charges 0.64% per year while VYM charges 0.04%. On a $10,000 position that is $64 vs $4 annually, a gap of $60 per year that compounds over a long holding period. On income, FXZ currently yields 1.42% against 2.24% for VYM.
Holdings Overlap
51.2% of FXZ's money is in holdings VYM also owns. 2.8% of VYM's money is in holdings FXZ also owns.
The two portfolios partly overlap.
21 positions in common, counted across the 39 positions we hold weights for in FXZ and 603 in VYM, against full books of 80 and 613.
What only one of them owns
Our book lists 550 positions for VYM that do not appear in our book for FXZ (94.6% of the fund), and 16 for FXZ that do not appear in VYM (39.9%).
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 FXZ | Weight in VYM | Difference |
|---|---|---|---|
| NEMNewmont Corp Common | 5.10% | 0.41% | 4.69% |
| CFCf Industries Holdings Inc. | 4.92% | 0.07% | 4.85% |
| NUENucor Corp. | 3.94% | 0.20% | 3.74% |
| IFFInternational Flavors & Fragrances Inc. | 3.55% | 0.08% | 3.47% |
| MOSMosaic Co. | 3.53% | 0.03% | 3.50% |
| EMNEastman Chemical Co. | 3.50% | 0.03% | 3.47% |
| RSReliance Steel & Aluminum Co. | 2.70% | 0.08% | 2.62% |
| SCCOSouthern Copper Corp | 2.71% | 0.07% | 2.64% |
| NEUNewmarket Corp | 2.67% | 0.02% | 2.65% |
| AVYAvery Dennison Corp. | 2.59% | 0.05% | 2.54% |
51.2% of FXZ 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.
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Frequently Asked Questions
Which is cheaper, FXZ or VYM?
FXZ has an expense ratio of 0.64% while VYM charges 0.04%. VYM is the cheaper option, by $60 a year on a $10,000 investment.
Which performed better, FXZ or VYM?
Over the past year FXZ returned +42.87% vs +20.84% for VYM, so FXZ leads on 1-year performance. Over the longest common window we track (19 years), FXZ annualized +8.37% vs +6.79% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FXZ or VYM?
FXZ has been the more volatile fund at 24.6% annualized versus 14.7% for VYM. Worst drawdown: FXZ -66.0% vs VYM -58.8%.
Should I hold both FXZ and VYM?
FXZ and VYM have a monthly-return correlation of 0.83, 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 FXZ and VYM?
51.2% of FXZ's money is in holdings VYM also owns. 2.8% of VYM's is in holdings FXZ also owns. They hold 21 positions in common, counted across the 39 positions we hold weights for in FXZ and 603 in VYM.
Which pays a higher dividend, FXZ or VYM?
FXZ yields 1.42% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.
Is VYM better than FXZ?
VYM has a lower expense ratio. FXZ led over 1Y and the full window, VYM over 3Y and 5Y. VYM is less concentrated, with 25.9% of the fund in its ten largest positions against 44.1%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.