FBND vs VYM
FBND vs VYM
Fidelity Total Bond 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 | FBND | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.36% | 0.04% | |
| AUM | $26.6B | $79.0B | |
| Dividend Yield | 5.07% | 2.86% | |
| Holdings | 1,558 | 568 | |
| YTD Return | -0.33% | +13.24% | |
| 1Y Return | +2.89% | +23.76% | |
| 3Y Return (annualized) | +4.55% | +16.97% | |
| 5Y Return (annualized) | +0.29% | +12.26% | |
| Volatility (annualized) | 5.0% | 14.6% | |
| Max Drawdown | -17.3% | -58.8% | |
| Fund Family | Fidelity Investments (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Oct 6, 2014 | Nov 10, 2006 |
FBND vs VYM Performance
Fidelity Total Bond ETF (FBND) is a ETF from Fidelity Investments (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year FBND returned +2.89% while VYM returned +23.76%. Year to date, FBND is down 0.33% versus a gain of 13.24% for VYM.
Over three years, FBND compounded at +4.55% per year against +16.97% for VYM; over five years the annualized figures are +0.29% and +12.26% respectively. Across the full 12-year window we track, VYM has the edge at +6.96% annualized vs +0.95%. 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 5.0% for FBND. 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 -17.3% for FBND 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 0.43. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FBND charges 0.36% per year while VYM charges 0.04%. On a $10,000 position that is $36 vs $4 annually, a gap of $32 per year that compounds over a long holding period. On income, FBND currently yields 5.07% against 2.86% for VYM.
Holdings Overlap
FBND and VYM share 0 holdings out of 599 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, FBND or VYM?
FBND has an expense ratio of 0.36% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $32 per year of difference.
Which performed better, FBND or VYM?
Over the past year FBND returned +2.89% vs +23.76% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (12 years), FBND annualized +0.95% vs +6.96% for VYM. Past performance does not guarantee future results.
Which is riskier, FBND or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 5.0% for FBND. Worst drawdown: FBND -17.3% vs VYM -58.8%.
Should I hold both FBND and VYM?
FBND and VYM have a monthly-return correlation of 0.43, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FBND and VYM?
FBND and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 599 unique securities.
Which pays a higher dividend, FBND or VYM?
FBND yields 5.07% while VYM yields 2.86%, so FBND currently pays the higher dividend yield.
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