FREL vs VYM
FREL vs VYM
Fidelity MSCI Real Estate Index 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 | FREL | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.08% | 0.04% | |
| AUM | $1.5B | $79.0B | |
| Dividend Yield | 3.29% | 2.86% | |
| Holdings | 130 | 568 | |
| YTD Return | +13.87% | +15.45% | |
| 1Y Return | +13.65% | +26.05% | |
| 3Y Return (annualized) | +9.85% | +17.96% | |
| 5Y Return (annualized) | +2.26% | +12.54% | |
| Volatility (annualized) | 17.2% | 14.6% | |
| Max Drawdown | -43.5% | -58.8% | |
| Fund Family | Fidelity Investments (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Feb 2, 2015 | Nov 10, 2006 |
FREL vs VYM Performance
Fidelity MSCI Real Estate Index ETF (FREL) is a ETF from Fidelity Investments (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year FREL returned +13.65% while VYM returned +26.05%. Year to date, FREL is up 13.87% versus a gain of 15.45% for VYM.
Over three years, FREL compounded at +9.85% per year against +17.96% for VYM; over five years the annualized figures are +2.26% and +12.54% respectively. Across the full 12-year window we track, VYM has the edge at +7.06% annualized vs +3.40%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FREL has been the more volatile fund, with annualized monthly volatility of 17.2% 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 -43.5% for FREL 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 0.78. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FREL charges 0.08% per year while VYM charges 0.04%. On a $10,000 position that is $8 vs $4 annually, a gap of $4 per year that compounds over a long holding period. On income, FREL currently yields 3.29% against 2.86% for VYM.
Holdings Overlap
Frequently Asked Questions
Which is cheaper, FREL or VYM?
FREL has an expense ratio of 0.08% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $4 per year of difference.
Which performed better, FREL or VYM?
Over the past year FREL returned +13.65% vs +26.05% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (12 years), FREL annualized +3.40% vs +7.06% for VYM. Past performance does not guarantee future results.
Which is riskier, FREL or VYM?
FREL has been the more volatile fund at 17.2% annualized versus 14.6% for VYM. Worst drawdown: FREL -43.5% vs VYM -58.8%.
Should I hold both FREL and VYM?
FREL and VYM have a monthly-return correlation of 0.78, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FREL and VYM?
FREL and VYM share 2 common holdings with a 0.0% weight overlap. Combined, they hold 683 unique securities.
Which pays a higher dividend, FREL or VYM?
FREL yields 3.29% while VYM yields 2.86%, so FREL currently pays the higher dividend yield.
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