FXNAX vs VYM
FXNAX vs VYM
Fidelity US Bond Index Fund vs Vanguard High Dividend Yield ETF
Quick Verdict
FXNAX has a lower expense ratio. VYM delivered stronger 1-year returns. FXNAX offers more diversification with 5307 holdings.
Side-by-Side Comparison
| Metric | FXNAX | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.04% | |
| AUM | $39.5B | $79.0B | |
| Dividend Yield | 3.39% | 2.86% | |
| Holdings | 10,443 | 568 | |
| YTD Return | -2.09% | +15.45% | |
| 1Y Return | -1.34% | +26.05% | |
| 3Y Return (annualized) | +0.66% | +17.96% | |
| 5Y Return (annualized) | -3.26% | +12.54% | |
| Volatility (annualized) | 6.2% | 14.6% | |
| Max Drawdown | -21.5% | -58.8% | |
| Fund Family | Fidelity Investments (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | May 4, 2011 | Nov 10, 2006 |
FXNAX vs VYM Performance
Fidelity US Bond Index Fund (FXNAX) is a mutual fund from Fidelity Investments (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year FXNAX returned -1.34% while VYM returned +26.05%. Year to date, FXNAX is down 2.09% versus a gain of 15.45% for VYM.
Over three years, FXNAX compounded at +0.66% per year against +17.96% for VYM; over five years the annualized figures are -3.26% and +12.54% respectively. Across the full 5-year window we track, VYM has the edge at +7.06% annualized vs -3.26%. 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 6.2% for FXNAX. 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 -21.5% for FXNAX 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
FXNAX charges 0.03% per year while VYM charges 0.04%. On a $10,000 position that is $3 vs $4 annually, a gap of $2 per year that compounds over a long holding period. On income, FXNAX currently yields 3.39% against 2.86% for VYM.
Holdings Overlap
FXNAX and VYM share 0 holdings out of 5865 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, FXNAX or VYM?
FXNAX has an expense ratio of 0.03% while VYM charges 0.04%. FXNAX is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, FXNAX or VYM?
Over the past year FXNAX returned -1.34% vs +26.05% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (5 years), FXNAX annualized -3.26% vs +7.06% for VYM. Past performance does not guarantee future results.
Which is riskier, FXNAX or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 6.2% for FXNAX. Worst drawdown: FXNAX -21.5% vs VYM -58.8%.
Should I hold both FXNAX and VYM?
FXNAX 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 FXNAX and VYM?
FXNAX and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 5865 unique securities.
Which pays a higher dividend, FXNAX or VYM?
FXNAX yields 3.39% while VYM yields 2.86%, so FXNAX currently pays the higher dividend yield.
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