FZROX vs VYM
Fidelity ZERO Total Market Index Fund vs Vanguard High Dividend Yield ETF
Quick Verdict
FZROX has a lower expense ratio. VYM delivered stronger 1-year returns. FZROX offers more diversification with 2,533 holdings.
Side-by-Side Comparison
| Metric | FZROX | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.00% | 0.04% | |
| AUM | $3.1B | $81.6B | |
| Dividend Yield | 0.93% | 2.24% | |
| Holdings | 2,533 | 616 | |
| YTD Return | +14.89% | +15.84% | |
| 1Y Return | +21.23% | +23.95% | |
| 3Y Return (annualized) | +20.67% | +19.02% | |
| 5Y Return (annualized) | +11.55% | +12.19% | |
| Volatility (annualized) | 15.7% | 14.6% | |
| Max Drawdown | -26.9% | -58.8% | |
| Fund Family | Fidelity Investments (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Aug 2, 2018 | Nov 10, 2006 |
FZROX vs VYM Performance
Fidelity ZERO Total Market Index Fund (FZROX) is a mutual fund from Fidelity Investments (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year FZROX returned +21.23% while VYM returned +23.95%. Year to date, FZROX is up 14.89% versus a gain of 15.84% for VYM.
Over three years, FZROX compounded at +20.67% per year against +19.02% for VYM; over five years the annualized figures are +11.55% and +12.19% respectively. Across the full 5-year window we track, FZROX has the edge at +11.55% annualized vs +7.07%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FZROX has been the more volatile fund, with annualized monthly volatility of 15.7% 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 -26.9% for FZROX 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 0.80. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FZROX charges 0.00% per year while VYM charges 0.04%. On a $10,000 position that is $0 vs $4 annually, a gap of $4 per year that compounds over a long holding period. On income, FZROX currently yields 0.93% against 2.24% for VYM.
Holdings Overlap
FZROX and VYM share 561 holdings out of 2556 unique holdings combined, representing a 32.6% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FZROX or VYM?
FZROX has an expense ratio of 0.00% while VYM charges 0.04%. FZROX is the cheaper option. On a $10,000 investment, that is $4 per year of difference.
Which performed better, FZROX or VYM?
Over the past year FZROX returned +21.23% vs +23.95% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (5 years), FZROX annualized +11.55% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, FZROX or VYM?
FZROX has been the more volatile fund at 15.7% annualized versus 14.6% for VYM. Worst drawdown: FZROX -26.9% vs VYM -58.8%.
Should I hold both FZROX and VYM?
FZROX and VYM have a monthly-return correlation of 0.80, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FZROX and VYM?
FZROX and VYM share 561 common holdings with a 32.6% weight overlap. Combined, they hold 2556 unique securities.
Which pays a higher dividend, FZROX or VYM?
FZROX yields 0.93% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.
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