FHAIX vs. VYM

Last updated Jun 3, 2026

FHAIX (Franklin High Income Fund) and VYM (Vanguard High Dividend Yield ETF) are both funds - FHAIX is a High Yield Bonds fund managed by Franklin Templeton, while VYM is a Dividend fund tracking the FTSE High Dividend Yield Index. Over the past 10 years, FHAIX returned 5.93%/yr vs 11.94%/yr for VYM. At a 0.30 correlation, their price movements are largely independent. FHAIX charges 0.77%/yr vs 0.04%/yr for VYM.

Performance

FHAIX vs. VYM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Franklin High Income Fund (FHAIX) and Vanguard High Dividend Yield ETF (VYM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FHAIX achieves a 0.95% return, which is significantly lower than VYM's 12.96% return. Over the past 10 years, FHAIX has underperformed VYM with an annualized return of 5.93%, while VYM has yielded a comparatively higher 11.94% annualized return.

FHAIX

• 1D: 0.00%
• 1M: -0.05%
• YTD: 0.95%
• 6M: 1.46%
• 1Y: 6.52%
• 3Y*: 8.35%
• 5Y*: 4.28%
• 10Y*: 5.93%

VYM

• 1D: 1.24%
• 1M: 2.98%
• YTD: 12.96%
• 6M: 13.69%
• 1Y: 27.70%
• 3Y*: 19.05%
• 5Y*: 11.67%
• 10Y*: 11.94%

*Multi-year figures are annualized to reflect compound growth (CAGR)

FHAIX vs. VYM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FHAIX Franklin High Income Fund	0.95%	7.28%	7.83%	13.84%	-9.29%	5.77%	6.76%	14.29%	-3.19%	6.73%
VYM Vanguard High Dividend Yield ETF	12.96%	15.42%	17.60%	6.57%	-0.43%	26.20%	1.15%	24.06%	-5.92%	16.42%

Correlation

The correlation between FHAIX and VYM is 0.38, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.38
Correlation (3Y) Calculated over the trailing 3-year period	0.36
Correlation (5Y) Calculated over the trailing 5-year period	0.38
Correlation (10Y) Calculated over the trailing 10-year period	0.36
Correlation (All Time) Calculated using the full available price history since Nov 17, 2006	0.30

Return for Risk

FHAIX vs. VYM — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

FHAIX

FHAIX Risk / Return Rank: 41
FHAIX Sharpe Ratio Rank: 25
FHAIX Sortino Ratio Rank: 27
FHAIX Omega Ratio Rank: 64
FHAIX Calmar Ratio Rank: 36
FHAIX Martin Ratio Rank: 56

VYM

VYM Risk / Return Rank: 82
VYM Sharpe Ratio Rank: 82
VYM Sortino Ratio Rank: 85
VYM Omega Ratio Rank: 81
VYM Calmar Ratio Rank: 80
VYM Martin Ratio Rank: 79

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

FHAIX vs. VYM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Franklin High Income Fund (FHAIX) and Vanguard High Dividend Yield ETF (VYM). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	FHAIX	VYM	Difference
Sharpe ratio Return per unit of total volatility	1.46	2.71	-1.25
Sortino ratio Return per unit of downside risk	2.19	3.84	-1.65
Omega ratio Gain probability vs. loss probability	1.45	1.49	-0.04
Calmar ratio Return relative to maximum drawdown	2.30	4.20	-1.90
Martin ratio Return relative to average drawdown	11.34	15.80	-4.46
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

FHAIX vs. VYM - Sharpe Ratio Comparison

The current FHAIX Sharpe Ratio is 1.46, which is lower than the VYM Sharpe Ratio of 2.71. The chart below compares the historical Sharpe Ratios of FHAIX and VYM, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	FHAIX	VYM	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.46	2.71	-1.25
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.73	0.84	-0.11
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.95	0.73	+0.22
Sharpe Ratio (All Time) Calculated using the full available price history	1.02	0.51	+0.51

Drawdowns

FHAIX vs. VYM - Drawdown Comparison

The maximum FHAIX drawdown since its inception was -31.52%, smaller than the maximum VYM drawdown of -56.98%. Use the drawdown chart below to compare losses from any high point for FHAIX and VYM.

Drawdown Indicators

	FHAIX	VYM	Difference
Max Drawdown Largest peak-to-trough decline	-31.52%	-56.98%	+25.46%
Max Drawdown (1Y) Largest decline over 1 year	-2.84%	-6.69%	+3.85%
Max Drawdown (3Y) Largest decline over 3 years	-4.55%	-14.46%	+9.91%
Max Drawdown (5Y) Largest decline over 5 years	-14.32%	-15.84%	+1.52%
Max Drawdown (10Y) Largest decline over 10 years	-19.49%	-35.21%	+15.72%
Current Drawdown Current decline from peak	-0.12%	0.00%	-0.12%
Average Drawdown Average peak-to-trough decline	-3.07%	-7.20%	+4.13%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.57%	1.78%	-1.21%

Volatility

FHAIX vs. VYM - Volatility Comparison

The current volatility for Franklin High Income Fund (FHAIX) is 1.52%, while Vanguard High Dividend Yield ETF (VYM) has a volatility of 2.88%. This indicates that FHAIX experiences smaller price fluctuations and is considered to be less risky than VYM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FHAIX	VYM	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.52%	2.88%	-1.36%
Volatility (6M) Calculated over the trailing 6-month period	3.48%	7.73%	-4.25%
Volatility (1Y) Calculated over the trailing 1-year period	4.50%	10.27%	-5.77%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	5.86%	13.96%	-8.10%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	6.24%	16.34%	-10.10%

FHAIX vs. VYM - Expense Ratio Comparison

FHAIX has a 0.77% expense ratio, which is higher than VYM's 0.04% expense ratio.

Dividends

FHAIX vs. VYM - Dividend Comparison

FHAIX's dividend yield for the trailing twelve months is around 5.79%, more than VYM's 2.18% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FHAIX Franklin High Income Fund	5.79%	4.71%	6.37%	6.09%	5.97%	5.63%	5.19%	5.45%	5.99%	5.49%	5.84%	7.19%
VYM Vanguard High Dividend Yield ETF	2.18%	2.44%	2.74%	3.12%	3.01%	2.76%	3.18%	3.03%	3.40%	2.80%	2.91%	3.22%

Frequently Asked Questions

Can I hold both FHAIX and VYM in my portfolio?

FHAIX and VYM have a correlation of 0.38, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FHAIX or VYM?

VYM has higher volatility (2.88%) compared to FHAIX (1.52%). In terms of maximum drawdown, FHAIX dropped -31.52% vs VYM's -56.98%.

Which has better risk-adjusted returns?

VYM currently has the higher Sharpe Ratio (2.71 vs 1.46), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.