MFLX vs VYM
MFLX vs VYM
First Trust Flexible Municipal High Income ETF 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 558 holdings.
Side-by-Side Comparison
| Metric | MFLX | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.75% | 0.04% | |
| AUM | $21M | $79.0B | |
| Dividend Yield | 4.09% | 2.86% | |
| Holdings | 80 | 568 | |
| YTD Return | +2.28% | +15.80% | |
| 1Y Return | +7.25% | +26.12% | |
| 3Y Return (annualized) | +5.05% | +18.25% | |
| 5Y Return (annualized) | -0.92% | +12.51% | |
| Volatility (annualized) | 8.5% | 14.6% | |
| Max Drawdown | -26.9% | -58.8% | |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Sep 27, 2016 | Nov 10, 2006 |
MFLX vs VYM Performance
First Trust Flexible Municipal High Income ETF (MFLX) 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 MFLX returned +7.25% while VYM returned +26.12%. Year to date, MFLX is up 2.28% versus a gain of 15.80% for VYM.
Over three years, MFLX compounded at +5.05% per year against +18.25% for VYM; over five years the annualized figures are -0.92% and +12.51% respectively. Across the full 10-year window we track, VYM has the edge at +7.07% annualized vs +0.39%. 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 8.5% for MFLX. 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 MFLX 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 0.46. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MFLX charges 0.75% per year while VYM charges 0.04%. On a $10,000 position that is $75 vs $4 annually, a gap of $71 per year that compounds over a long holding period. On income, MFLX currently yields 4.09% against 2.86% for VYM.
Holdings Overlap
MFLX and VYM share 0 holdings out of 608 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, MFLX or VYM?
MFLX has an expense ratio of 0.75% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $71 per year of difference.
Which performed better, MFLX or VYM?
Over the past year MFLX returned +7.25% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (10 years), MFLX annualized +0.39% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, MFLX or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 8.5% for MFLX. Worst drawdown: MFLX -26.9% vs VYM -58.8%.
Should I hold both MFLX and VYM?
MFLX and VYM have a monthly-return correlation of 0.46, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MFLX and VYM?
MFLX and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 608 unique securities.
Which pays a higher dividend, MFLX or VYM?
MFLX yields 4.09% while VYM yields 2.86%, so MFLX currently pays the higher dividend yield.
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