FXR vs VYM

Quick Verdict

VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.

Lower Fees: VYMHigher Returns: VYMMore Diversified: VYM

Side-by-Side Comparison

MetricFXRVYMWinner
Expense Ratio0.60%0.04%
AUM$749M$79.0B
Dividend Yield0.62%2.86%
Holdings146568
YTD Return+12.93%+15.45%
1Y Return+19.66%+26.05%
3Y Return (annualized)+15.08%+17.96%
5Y Return (annualized)+9.83%+12.54%
Volatility (annualized)22.3%14.6%
Max Drawdown-64.0%-58.8%
Fund FamilyFirst Trust Portfolios (US)Vanguard (US)
CategoryEquityEquity
InceptionMay 8, 2007Nov 10, 2006

FXR vs VYM Performance

First Trust Industrials/Producer Durables AlphaDEX Fund (FXR) is a ETF from First Trust Portfolios (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year FXR returned +19.66% while VYM returned +26.05%. Year to date, FXR is up 12.93% versus a gain of 15.45% for VYM.

Over three years, FXR compounded at +15.08% per year against +17.96% for VYM; over five years the annualized figures are +9.83% and +12.54% respectively. Across the full 19-year window we track, FXR has the edge at +8.47% annualized vs +7.06%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

FXR has been the more volatile fund, with annualized monthly volatility of 22.3% 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 -64.0% for FXR 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 0.84. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

FXR charges 0.60% per year while VYM charges 0.04%. On a $10,000 position that is $60 vs $4 annually, a gap of $56 per year that compounds over a long holding period. On income, FXR currently yields 0.62% against 2.86% for VYM.

Holdings Overlap

7.8%overlap

FXR and VYM share 43 holdings out of 670 unique holdings combined, representing a 7.8% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in FXRWeight in VYMDifference
CAT1.01%1.51%0.50%
NOC0.97%0.43%0.54%
FIS1.19%0.12%1.07%
ETNProProPro
FDXProProPro
CMIProProPro
ADTProProPro
WUProProPro
HONProProPro
SONProProPro
See all 10 holdings FXR shares with VYM
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Frequently Asked Questions

Which is cheaper, FXR or VYM?

FXR has an expense ratio of 0.60% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $56 per year of difference.

Which performed better, FXR or VYM?

Over the past year FXR returned +19.66% vs +26.05% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (19 years), FXR annualized +8.47% vs +7.06% for VYM. Past performance does not guarantee future results.

Which is riskier, FXR or VYM?

FXR has been the more volatile fund at 22.3% annualized versus 14.6% for VYM. Worst drawdown: FXR -64.0% vs VYM -58.8%.

Should I hold both FXR and VYM?

FXR and VYM have a monthly-return correlation of 0.84, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between FXR and VYM?

FXR and VYM share 43 common holdings with a 7.8% weight overlap. Combined, they hold 670 unique securities.

Which pays a higher dividend, FXR or VYM?

FXR yields 0.62% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.

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