FLTB 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

MetricFLTBVYMWinner
Expense Ratio0.25%0.04%
AUM$408M$79.0B
Dividend Yield4.76%2.86%
Holdings937568
YTD Return+1.08%+15.20%
1Y Return+3.30%+25.56%
3Y Return (annualized)+5.50%+17.86%
5Y Return (annualized)+2.31%+12.35%
Volatility (annualized)128.3%14.6%
Max Drawdown-73.5%-58.8%
Fund FamilyFidelity Investments (US)Vanguard (US)
CategoryFixed IncomeEquity
InceptionOct 6, 2014Nov 10, 2006

FLTB vs VYM Performance

Fidelity Limited Term Bond ETF (FLTB) is a ETF from Fidelity Investments (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year FLTB returned +3.30% while VYM returned +25.56%. Year to date, FLTB is up 1.08% versus a gain of 15.20% for VYM.

Over three years, FLTB compounded at +5.50% per year against +17.86% for VYM; over five years the annualized figures are +2.31% and +12.35% respectively. Across the full 20-year window we track, FLTB has the edge at +7.74% annualized vs +7.05%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

FLTB has been the more volatile fund, with annualized monthly volatility of 128.3% 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 -73.5% for FLTB 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 0.05. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

FLTB charges 0.25% per year while VYM charges 0.04%. On a $10,000 position that is $25 vs $4 annually, a gap of $21 per year that compounds over a long holding period. On income, FLTB currently yields 4.76% against 2.86% for VYM.

Holdings Overlap

0.0%overlap

FLTB and VYM share 0 holdings out of 575 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, FLTB or VYM?

FLTB has an expense ratio of 0.25% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $21 per year of difference.

Which performed better, FLTB or VYM?

Over the past year FLTB returned +3.30% vs +25.56% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), FLTB annualized +7.74% vs +7.05% for VYM. Past performance does not guarantee future results.

Which is riskier, FLTB or VYM?

FLTB has been the more volatile fund at 128.3% annualized versus 14.6% for VYM. Worst drawdown: FLTB -73.5% vs VYM -58.8%.

Should I hold both FLTB and VYM?

FLTB and VYM have a monthly-return correlation of 0.05, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between FLTB and VYM?

FLTB and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 575 unique securities.

Which pays a higher dividend, FLTB or VYM?

FLTB yields 4.76% while VYM yields 2.86%, so FLTB currently pays the higher dividend yield.

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