FHYS vs VYM
FHYS vs VYM
Federated Hermes Short Duration High Yield 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 | FHYS | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.50% | 0.04% | |
| AUM | $54M | $79.0B | |
| Dividend Yield | 5.82% | 2.86% | |
| Holdings | 252 | 568 | |
| YTD Return | +2.19% | +15.57% | |
| 1Y Return | +5.26% | +25.99% | |
| 3Y Return (annualized) | +7.36% | +18.02% | |
| 5Y Return (annualized) | - | +12.71% | |
| Volatility (annualized) | 4.6% | 14.6% | |
| Max Drawdown | -11.6% | -58.8% | |
| Fund Family | Federated Hermes | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Dec 16, 2021 | Nov 10, 2006 |
FHYS vs VYM Performance
Federated Hermes Short Duration High Yield ETF (FHYS) is a ETF from Federated Hermes and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year FHYS returned +5.26% while VYM returned +25.99%. Year to date, FHYS is up 2.19% versus a gain of 15.57% for VYM.
Over three years, FHYS compounded at +7.36% per year against +18.02% for VYM. Across the full 5-year window we track, VYM has the edge at +7.07% annualized vs +4.50%. 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 4.6% for FHYS. 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 -11.6% for FHYS 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 0.72. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FHYS charges 0.50% per year while VYM charges 0.04%. On a $10,000 position that is $50 vs $4 annually, a gap of $46 per year that compounds over a long holding period. On income, FHYS currently yields 5.82% against 2.86% for VYM.
Holdings Overlap
FHYS and VYM share 0 holdings out of 763 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, FHYS or VYM?
FHYS has an expense ratio of 0.50% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $46 per year of difference.
Which performed better, FHYS or VYM?
Over the past year FHYS returned +5.26% vs +25.99% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (5 years), FHYS annualized +4.50% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, FHYS or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 4.6% for FHYS. Worst drawdown: FHYS -11.6% vs VYM -58.8%.
Should I hold both FHYS and VYM?
FHYS and VYM have a monthly-return correlation of 0.72, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FHYS and VYM?
FHYS and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 763 unique securities.
Which pays a higher dividend, FHYS or VYM?
FHYS yields 5.82% while VYM yields 2.86%, so FHYS currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.