FYC vs VYM
First Trust Small Cap Growth AlphaDEX Fund vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. FYC delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | FYC | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.70% | 0.04% | |
| AUM | $1.3B | $79.0B | |
| Dividend Yield | 0.07% | 2.86% | |
| Holdings | 263 | 568 | |
| YTD Return | +27.48% | +16.78% | |
| 1Y Return | +45.98% | +24.43% | |
| 3Y Return (annualized) | +27.25% | +18.60% | |
| 5Y Return (annualized) | +12.07% | +12.30% | |
| Volatility (annualized) | 20.1% | 14.6% | |
| Max Drawdown | -48.1% | -58.8% | |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Apr 19, 2011 | Nov 10, 2006 |
FYC vs VYM Performance
First Trust Small Cap Growth AlphaDEX Fund (FYC) 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 FYC returned +45.98% while VYM returned +24.43%. Year to date, FYC is up 27.48% versus a gain of 16.78% for VYM.
Over three years, FYC compounded at +27.25% per year against +18.60% for VYM; over five years the annualized figures are +12.07% and +12.30% respectively. Across the full 15-year window we track, FYC has the edge at +12.61% annualized vs +7.11%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FYC has been the more volatile fund, with annualized monthly volatility of 20.1% 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 -48.1% for FYC 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 0.77. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FYC charges 0.70% per year while VYM charges 0.04%. On a $10,000 position that is $70 vs $4 annually, a gap of $66 per year that compounds over a long holding period. On income, FYC currently yields 0.07% against 2.86% for VYM.
Holdings Overlap
FYC and VYM share 21 holdings out of 797 unique holdings combined, representing a 0.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FYC or VYM?
FYC has an expense ratio of 0.70% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $66 per year of difference.
Which performed better, FYC or VYM?
Over the past year FYC returned +45.98% vs +24.43% for VYM, so FYC leads on 1-year performance. Over the longest common window we track (15 years), FYC annualized +12.61% vs +7.11% for VYM. Past performance does not guarantee future results.
Which is riskier, FYC or VYM?
FYC has been the more volatile fund at 20.1% annualized versus 14.6% for VYM. Worst drawdown: FYC -48.1% vs VYM -58.8%.
Should I hold both FYC and VYM?
FYC and VYM have a monthly-return correlation of 0.77, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FYC and VYM?
FYC and VYM share 21 common holdings with a 0.2% weight overlap. Combined, they hold 797 unique securities.
Which pays a higher dividend, FYC or VYM?
FYC yields 0.07% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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