FTBD vs VYM

Quick Verdict

VYM has a lower expense ratio. VYM delivered stronger 1-year returns. FTBD offers more diversification with 618 holdings.

Lower Fees: VYMHigher Returns: VYMMore Diversified: FTBD

Side-by-Side Comparison

MetricFTBDVYMWinner
Expense Ratio0.55%0.04%
AUM$37M$79.0B
Dividend Yield5.46%2.86%
Holdings1,525568
YTD Return+0.41%+13.24%
1Y Return+3.63%+23.76%
3Y Return (annualized)+4.86%+16.97%
5Y Return (annualized)-+12.26%
Volatility (annualized)5.8%14.6%
Max Drawdown-7.0%-58.8%
Fund FamilyFidelity Investments (US)Vanguard (US)
CategoryFixed IncomeEquity
InceptionJan 24, 2023Nov 10, 2006

FTBD vs VYM Performance

Fidelity Tactical Bond ETF (FTBD) is a ETF from Fidelity Investments (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year FTBD returned +3.63% while VYM returned +23.76%. Year to date, FTBD is up 0.41% versus a gain of 13.24% for VYM.

Over three years, FTBD compounded at +4.86% per year against +16.97% for VYM. Across the full 4-year window we track, VYM has the edge at +6.96% annualized vs +3.97%. 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 5.8% for FTBD. 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 -7.0% for FTBD 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 0.69. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

FTBD charges 0.55% per year while VYM charges 0.04%. On a $10,000 position that is $55 vs $4 annually, a gap of $51 per year that compounds over a long holding period. On income, FTBD currently yields 5.46% against 2.86% for VYM.

Holdings Overlap

0.1%overlap

FTBD and VYM share 2 holdings out of 1174 unique holdings combined, representing a 0.1% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in FTBDWeight in VYMDifference
EIX0.02%0.12%0.10%
AL0.06%0.03%0.03%

Frequently Asked Questions

Which is cheaper, FTBD or VYM?

FTBD has an expense ratio of 0.55% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $51 per year of difference.

Which performed better, FTBD or VYM?

Over the past year FTBD returned +3.63% vs +23.76% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (4 years), FTBD annualized +3.97% vs +6.96% for VYM. Past performance does not guarantee future results.

Which is riskier, FTBD or VYM?

VYM has been the more volatile fund at 14.6% annualized versus 5.8% for FTBD. Worst drawdown: FTBD -7.0% vs VYM -58.8%.

Should I hold both FTBD and VYM?

FTBD and VYM have a monthly-return correlation of 0.69, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between FTBD and VYM?

FTBD and VYM share 2 common holdings with a 0.1% weight overlap. Combined, they hold 1174 unique securities.

Which pays a higher dividend, FTBD or VYM?

FTBD yields 5.46% while VYM yields 2.86%, so FTBD currently pays the higher dividend yield.

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