FMG.AX vs. VHY.AX

Last updated Jul 16, 2026

FMG.AX (Fortescue Ltd) is a stock, while VHY.AX (Vanguard Australian Shares High Yield ETF) is Dividend fund tracking the FTSE Australia High Dividend Yield Index. Over the past 10 years, FMG.AX returned 27.02%/yr vs 9.28%/yr for VHY.AX. At a 0.44 correlation, their price movements are largely independent.

Performance

FMG.AX vs. VHY.AX - Performance Comparison

The chart below illustrates the hypothetical performance of a A$10,000 investment in Fortescue Ltd (FMG.AX) and Vanguard Australian Shares High Yield ETF (VHY.AX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FMG.AX achieves a -14.20% return, which is significantly lower than VHY.AX's 8.22% return. Over the past 10 years, FMG.AX has outperformed VHY.AX with an annualized return of 27.02%, while VHY.AX has yielded a comparatively lower 9.28% annualized return.

FMG.AX

• 1D: -1.02%
• 1M: -9.29%
• 6M: -16.62%
• YTD: -14.20%
• 1Y: 16.16%
• 3Y*: 0.88%
• 5Y*: 3.06%
• 10Y*: 27.02%

VHY.AX

• 1D: 0.20%
• 1M: -0.91%
• 6M: 9.04%
• YTD: 8.22%
• 1Y: 15.11%
• 3Y*: 12.91%
• 5Y*: 9.87%
• 10Y*: 9.28%

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

FMG.AX vs. VHY.AX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FMG.AX Fortescue Ltd	-14.20%	27.93%	-31.08%	53.97%	20.41%	-2.86%	150.31%	171.08%	-9.50%	-10.85%
VHY.AX Vanguard Australian Shares High Yield ETF	8.22%	14.77%	9.04%	9.83%	7.71%	16.73%	1.71%	20.44%	-8.52%	7.84%

Correlation

The correlation between FMG.AX and VHY.AX is 0.33, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.33
Correlation (3Y) Calculated over the trailing 3-year period	0.46
Correlation (5Y) Calculated over the trailing 5-year period	0.52
Correlation (10Y) Calculated over the trailing 10-year period	0.45
Correlation (All Time) Calculated using the full available price history since May 23, 2011	0.44

The correlation between FMG.AX and VHY.AX shifts across timeframes, from 0.33 (1 year) to 0.52 (5 years), reflecting how their relationship changes across market environments.

Return for Risk

FMG.AX vs. VHY.AX — Risk / Return Rank

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

FMG.AX

FMG.AX Risk / Return Rank: 60
FMG.AX Sharpe Ratio Rank: 64
FMG.AX Sortino Ratio Rank: 56
FMG.AX Omega Ratio Rank: 55
FMG.AX Calmar Ratio Rank: 62
FMG.AX Martin Ratio Rank: 64

VHY.AX

VHY.AX Risk / Return Rank: 58
VHY.AX Sharpe Ratio Rank: 53
VHY.AX Sortino Ratio Rank: 55
VHY.AX Omega Ratio Rank: 52
VHY.AX Calmar Ratio Rank: 77
VHY.AX Martin Ratio Rank: 53

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.

FMG.AX vs. VHY.AX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Fortescue Ltd (FMG.AX) and Vanguard Australian Shares High Yield ETF (VHY.AX). 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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	FMG.AX	VHY.AX	Difference
Sharpe ratio: Return per unit of total volatility	0.52	1.49	-0.97
Sortino ratio: Return per unit of downside risk	0.88	2.15	-1.27
Omega ratio: Gain probability vs. loss probability	1.11	1.27	-0.16
Calmar ratio: Return relative to maximum drawdown	0.71	3.18	-2.47
Martin ratio: Return relative to average drawdown	1.75	7.34	-5.59

FMG.AX vs. VHY.AX - Sharpe Ratio Comparison

The current FMG.AX Sharpe Ratio is 0.52, which is lower than the VHY.AX Sharpe Ratio of 1.49. The chart below compares the historical Sharpe Ratios of FMG.AX and VHY.AX, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

FMG.AX vs. VHY.AX - Drawdown Comparison

The maximum FMG.AX drawdown since its inception was -89.91%, which is greater than VHY.AX's maximum drawdown of -35.54%. Use the drawdown chart below to compare losses from any high point for FMG.AX and VHY.AX.

Drawdown Indicators

	FMG.AX	VHY.AX	Difference
Max Drawdown Largest peak-to-trough decline	-89.91%	-35.54%	-54.37%
Max Drawdown (1Y) Largest decline over 1 year	-21.23%	-4.84%	-16.39%
Max Drawdown (3Y) Largest decline over 3 years	-46.47%	-11.68%	-34.79%
Max Drawdown (5Y) Largest decline over 5 years	-46.47%	-14.41%	-32.06%
Max Drawdown (10Y) Largest decline over 10 years	-46.47%	-35.54%	-10.93%
Current Drawdown Current decline from peak	-26.52%	-1.80%	-24.72%
Average Drawdown Average peak-to-trough decline	-40.35%	-4.87%	-35.48%
Ulcer Index Depth and duration of drawdowns from previous peaks	8.72%	2.14%	+6.58%

Volatility

FMG.AX vs. VHY.AX - Volatility Comparison

Fortescue Ltd (FMG.AX) has a higher volatility of 6.74% compared to Vanguard Australian Shares High Yield ETF (VHY.AX) at 2.23%. This indicates that FMG.AX's price experiences larger fluctuations and is considered to be riskier than VHY.AX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FMG.AX	VHY.AX	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.74%	2.23%	+4.51%
Volatility (6M) Calculated over the trailing 6-month period	23.05%	8.14%	+14.91%
Volatility (1Y) Calculated over the trailing 1-year period	29.04%	10.37%	+18.67%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	35.16%	12.70%	+22.46%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	37.93%	14.30%	+23.63%

Dividends

FMG.AX vs. VHY.AX - Dividend Comparison

FMG.AX's dividend yield for the trailing twelve months is around 3.18%, more than VHY.AX's 2.76% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FMG.AX Fortescue Ltd	3.18%	5.00%	10.79%	6.03%	10.09%	18.64%	7.51%	4.02%	5.49%	9.22%	2.55%	1.07%
VHY.AX Vanguard Australian Shares High Yield ETF	2.76%	8.37%	2.92%	3.73%	5.02%	4.84%	3.54%	5.35%	7.81%	5.69%	3.84%	6.40%

Frequently Asked Questions

Can I hold both FMG.AX and VHY.AX in my portfolio?

FMG.AX and VHY.AX have a correlation of 0.33, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.