FMDE 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

MetricFMDEVYMWinner
Expense Ratio0.23%0.04%
AUM$7.4B$79.0B
Dividend Yield1.08%2.86%
Holdings342568
YTD Return+15.77%+15.57%
1Y Return+22.20%+25.99%
3Y Return (annualized)-+18.02%
5Y Return (annualized)-+12.71%
Volatility (annualized)13.2%14.6%
Max Drawdown-21.1%-58.8%
Fund FamilyFidelity Investments (US)Vanguard (US)
CategoryEquityEquity
InceptionNov 20, 2023Nov 10, 2006

FMDE vs VYM Performance

Fidelity Enhanced Mid Cap Core ETF (FMDE) is a ETF from Fidelity Investments (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year FMDE returned +22.20% while VYM returned +25.99%. Year to date, FMDE is up 15.77% 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 13.2% for FMDE. 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 -21.1% for FMDE 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 0.86. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

FMDE charges 0.23% per year while VYM charges 0.04%. On a $10,000 position that is $23 vs $4 annually, a gap of $19 per year that compounds over a long holding period. On income, FMDE currently yields 1.08% against 2.86% for VYM.

Holdings Overlap

10.0%overlap

FMDE and VYM share 131 holdings out of 845 unique holdings combined, representing a 10.0% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in FMDEWeight in VYMDifference
BK0.97%0.36%0.61%
LHX0.95%0.30%0.65%
KMI0.89%0.28%0.61%
MPCProProPro
FProProPro
BMYProProPro
CAHProProPro
STTProProPro
NUEProProPro
PPLProProPro
See all 10 holdings FMDE shares with VYM
Exact weights in each fund and the difference, for every overlapping position.
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Frequently Asked Questions

Which is cheaper, FMDE or VYM?

FMDE has an expense ratio of 0.23% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $19 per year of difference.

Which performed better, FMDE or VYM?

Over the past year FMDE returned +22.20% vs +25.99% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (3 years), FMDE annualized +22.57% vs +7.07% for VYM. Past performance does not guarantee future results.

Which is riskier, FMDE or VYM?

VYM has been the more volatile fund at 14.6% annualized versus 13.2% for FMDE. Worst drawdown: FMDE -21.1% vs VYM -58.8%.

Should I hold both FMDE and VYM?

FMDE and VYM have a monthly-return correlation of 0.86, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between FMDE and VYM?

FMDE and VYM share 131 common holdings with a 10.0% weight overlap. Combined, they hold 845 unique securities.

Which pays a higher dividend, FMDE or VYM?

FMDE yields 1.08% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.

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