FTBD vs VYM
FTBD vs VYM
Fidelity Tactical Bond ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. FTBD offers more diversification with 618 holdings.
Side-by-Side Comparison
| Metric | FTBD | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.55% | 0.04% | |
| AUM | $37M | $79.0B | |
| Dividend Yield | 5.46% | 2.86% | |
| Holdings | 1,525 | 568 | |
| 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 Family | Fidelity Investments (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jan 24, 2023 | Nov 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
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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