FSEC vs VYM
FSEC vs VYM
Fidelity Investment Grade Securitized ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. FSEC offers more diversification with 731 holdings.
Side-by-Side Comparison
| Metric | FSEC | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.36% | 0.04% | |
| AUM | $4.7B | $79.0B | |
| Dividend Yield | 4.75% | 2.86% | |
| Holdings | 1,026 | 568 | |
| YTD Return | +0.32% | +13.24% | |
| 1Y Return | +4.61% | +23.76% | |
| 3Y Return (annualized) | +4.92% | +16.97% | |
| 5Y Return (annualized) | +0.25% | +12.26% | |
| Volatility (annualized) | 6.6% | 14.6% | |
| Max Drawdown | -18.0% | -58.8% | |
| Fund Family | Fidelity Investments (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Mar 2, 2021 | Nov 10, 2006 |
FSEC vs VYM Performance
Fidelity Investment Grade Securitized ETF (FSEC) is a ETF from Fidelity Investments (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year FSEC returned +4.61% while VYM returned +23.76%. Year to date, FSEC is up 0.32% versus a gain of 13.24% for VYM.
Over three years, FSEC compounded at +4.92% per year against +16.97% for VYM; over five years the annualized figures are +0.25% and +12.26% respectively. Across the full 5-year window we track, VYM has the edge at +6.96% annualized vs +0.32%. 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 6.6% for FSEC. 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 -18.0% for FSEC 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 0.56. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FSEC 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, FSEC currently yields 4.75% against 2.86% for VYM.
Holdings Overlap
FSEC and VYM share 0 holdings out of 1289 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, FSEC or VYM?
FSEC 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, FSEC or VYM?
Over the past year FSEC returned +4.61% vs +23.76% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (5 years), FSEC annualized +0.32% vs +6.96% for VYM. Past performance does not guarantee future results.
Which is riskier, FSEC or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 6.6% for FSEC. Worst drawdown: FSEC -18.0% vs VYM -58.8%.
Should I hold both FSEC and VYM?
FSEC and VYM have a monthly-return correlation of 0.56, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FSEC and VYM?
FSEC and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1289 unique securities.
Which pays a higher dividend, FSEC or VYM?
FSEC yields 4.75% while VYM yields 2.86%, so FSEC currently pays the higher dividend yield.
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