FAB vs VYM
FAB vs VYM
First Trust Multi Cap Value AlphaDEX Fund vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. FAB delivered stronger 1-year returns. FAB offers more diversification with 664 holdings.
Side-by-Side Comparison
| Metric | FAB | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.66% | 0.04% | |
| AUM | $168M | $79.0B | |
| Dividend Yield | 1.59% | 2.86% | |
| Holdings | 676 | 568 | |
| YTD Return | +19.05% | +13.82% | |
| 1Y Return | +31.61% | +24.08% | |
| 3Y Return (annualized) | +14.53% | +17.72% | |
| 5Y Return (annualized) | +10.27% | +12.13% | |
| Volatility (annualized) | 20.6% | 14.6% | |
| Max Drawdown | -64.3% | -58.8% | |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | May 8, 2007 | Nov 10, 2006 |
FAB vs VYM Performance
First Trust Multi Cap Value AlphaDEX Fund (FAB) 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 FAB returned +31.61% while VYM returned +24.08%. Year to date, FAB is up 19.05% versus a gain of 13.82% for VYM.
Over three years, FAB compounded at +14.53% per year against +17.72% for VYM; over five years the annualized figures are +10.27% and +12.13% respectively. Across the full 19-year window we track, FAB has the edge at +7.34% annualized vs +6.98%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FAB has been the more volatile fund, with annualized monthly volatility of 20.6% 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 -64.3% for FAB 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 0.91. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
FAB charges 0.66% per year while VYM charges 0.04%. On a $10,000 position that is $66 vs $4 annually, a gap of $62 per year that compounds over a long holding period. On income, FAB currently yields 1.59% against 2.86% for VYM.
Holdings Overlap
FAB and VYM share 320 holdings out of 902 unique holdings combined, representing a 25.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in FAB | Weight in VYM | Difference |
|---|---|---|---|
| XOM | 0.40% | 2.83% | 2.43% |
| CVX | 0.41% | 1.53% | 1.12% |
| PG | 0.17% | 1.72% | 1.55% |
| HD | Pro | Pro | Pro |
| BAC | Pro | Pro | Pro |
| WFC | Pro | Pro | Pro |
| VZ | Pro | Pro | Pro |
| T | Pro | Pro | Pro |
| COP | Pro | Pro | Pro |
| PEP | Pro | Pro | Pro |
See all 10 holdings FAB shares with VYM Exact weights in each fund and the difference, for every overlapping position. Get FundXLS Pro: $29/moFirst 500 subscribers, then $49/mo. Cancel anytime. | |||
Frequently Asked Questions
Which is cheaper, FAB or VYM?
FAB has an expense ratio of 0.66% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $62 per year of difference.
Which performed better, FAB or VYM?
Over the past year FAB returned +31.61% vs +24.08% for VYM, so FAB leads on 1-year performance. Over the longest common window we track (19 years), FAB annualized +7.34% vs +6.98% for VYM. Past performance does not guarantee future results.
Which is riskier, FAB or VYM?
FAB has been the more volatile fund at 20.6% annualized versus 14.6% for VYM. Worst drawdown: FAB -64.3% vs VYM -58.8%.
Should I hold both FAB and VYM?
FAB and VYM have a monthly-return correlation of 0.91, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between FAB and VYM?
FAB and VYM share 320 common holdings with a 25.2% weight overlap. Combined, they hold 902 unique securities.
Which pays a higher dividend, FAB or VYM?
FAB yields 1.59% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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