FARX vs VYM

Quick Verdict

VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.

Lower Fees: VYMHigher Returns: VYMMore Diversified: VYM

Side-by-Side Comparison

MetricFARXVYMWinner
Expense Ratio0.95%0.04%
AUM$13M$79.0B
Dividend Yield2.90%2.86%
Holdings13568
YTD Return+8.59%+15.57%
1Y Return+17.82%+25.99%
3Y Return (annualized)-+18.02%
5Y Return (annualized)-+12.71%
Volatility (annualized)5.0%14.6%
Max Drawdown-5.8%-58.8%
Fund FamilyFrontier Asset ManagementVanguard (US)
CategoryEquityEquity
InceptionDec 19, 2024Nov 10, 2006

FARX vs VYM Performance

Frontier Asset Absolute Return ETF (FARX) is a ETF from Frontier Asset Management and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year FARX returned +17.82% while VYM returned +25.99%. Year to date, FARX is up 8.59% versus a gain of 15.57% for VYM.

Risk: Volatility and Drawdowns

VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 5.0% for FARX. 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 -5.8% for FARX 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 0.73. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

FARX charges 0.95% per year while VYM charges 0.04%. On a $10,000 position that is $95 vs $4 annually, a gap of $91 per year that compounds over a long holding period. On income, FARX currently yields 2.90% against 2.86% for VYM.

Holdings Overlap

0.0%overlap

FARX and VYM share 0 holdings out of 570 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, FARX or VYM?

FARX has an expense ratio of 0.95% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $91 per year of difference.

Which performed better, FARX or VYM?

Over the past year FARX returned +17.82% vs +25.99% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (2 years), FARX annualized +12.41% vs +7.07% for VYM. Past performance does not guarantee future results.

Which is riskier, FARX or VYM?

VYM has been the more volatile fund at 14.6% annualized versus 5.0% for FARX. Worst drawdown: FARX -5.8% vs VYM -58.8%.

Should I hold both FARX and VYM?

FARX and VYM have a monthly-return correlation of 0.73, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between FARX and VYM?

FARX and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 570 unique securities.

Which pays a higher dividend, FARX or VYM?

FARX yields 2.90% while VYM yields 2.86%, so FARX currently pays the higher dividend yield.

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