VYM vs. FDL

Last updated Jun 24, 2026

VYM (Vanguard High Dividend Yield ETF) and FDL (First Trust Morningstar Dividend Leaders Index Fund) are both exchange-traded funds - VYM is a Dividend fund tracking the FTSE High Dividend Yield Index, while FDL is a Large Cap Value Equities fund tracking the Morningstar Dividend Leaders Index. Both are passively managed. Over the past 10 years, VYM returned 11.98%/yr vs 11.12%/yr for FDL. Their correlation of 0.89 suggests significant overlap in exposure. VYM charges 0.04%/yr vs 0.43%/yr for FDL.

Performance

VYM vs. FDL - Performance Comparison

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

Returns By Period

In the year-to-date period, VYM achieves a 11.51% return, which is significantly lower than FDL's 12.67% return. Over the past 10 years, VYM has outperformed FDL with an annualized return of 11.98%, while FDL has yielded a comparatively lower 11.12% annualized return.

VYM

• 1D: -0.16%
• 1M: 0.26%
• YTD: 11.51%
• 6M: 10.83%
• 1Y: 24.08%
• 3Y*: 18.41%
• 5Y*: 11.88%
• 10Y*: 11.98%

FDL

• 1D: 1.20%
• 1M: -2.75%
• YTD: 12.67%
• 6M: 13.02%
• 1Y: 22.39%
• 3Y*: 19.10%
• 5Y*: 13.08%
• 10Y*: 11.12%

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

VYM vs. FDL - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VYM Vanguard High Dividend Yield ETF	11.51%	15.42%	17.60%	6.57%	-0.43%	26.20%	1.15%	24.06%	-5.92%	16.42%
FDL First Trust Morningstar Dividend Leaders Index Fund	12.67%	14.79%	17.98%	2.94%	6.66%	26.10%	-4.30%	24.41%	-5.99%	12.02%

Correlation

The correlation between VYM and FDL is 0.62, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.62
Correlation (3Y) Calculated over the trailing 3-year period	0.78
Correlation (5Y) Calculated over the trailing 5-year period	0.85
Correlation (10Y) Calculated over the trailing 10-year period	0.88
Correlation (All Time) Calculated using the full available price history since Nov 16, 2006	0.89

Over the past year, the correlation between VYM and FDL has dropped to 0.62 - well below their long-term average of 0.89, suggesting their price drivers have been diverging.

VYM vs. FDL - Sectors Allocation Comparison

Sectors	VYM	FDL
Technology	20.3%	1.4%
Financial Services	19.9%	15.2%
Healthcare	12.2%	17.6%
Industrials	11.8%	3.9%
Energy	9.1%	25.7%
Consumer Defensive	8.0%	14.4%
Consumer Cyclical	6.6%	4.7%
Utilities	5.4%	6.5%
Basic Materials	3.4%	0.3%
Communication Services	3.4%	10.6%
Real Estate	0.0%	-

Return for Risk

VYM vs. FDL — Risk / Return Rank

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

VYM

VYM Risk / Return Rank: 75
VYM Sharpe Ratio Rank: 76
VYM Sortino Ratio Rank: 79
VYM Omega Ratio Rank: 75
VYM Calmar Ratio Rank: 73
VYM Martin Ratio Rank: 74

FDL

FDL Risk / Return Rank: 69
FDL Sharpe Ratio Rank: 61
FDL Sortino Ratio Rank: 68
FDL Omega Ratio Rank: 57
FDL Calmar Ratio Rank: 90
FDL Martin Ratio Rank: 69

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.

VYM vs. FDL - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard High Dividend Yield ETF (VYM) and First Trust Morningstar Dividend Leaders Index Fund (FDL). 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.

	VYM	FDL	Difference
Sharpe ratio: Return per unit of total volatility	2.33	1.95	+0.38
Sortino ratio: Return per unit of downside risk	3.33	2.96	+0.37
Omega ratio: Gain probability vs. loss probability	1.42	1.34	+0.08
Calmar ratio: Return relative to maximum drawdown	3.61	5.26	-1.65
Martin ratio: Return relative to average drawdown	13.43	12.40	+1.03

VYM vs. FDL - Sharpe Ratio Comparison

The current VYM Sharpe Ratio is 2.33, which is comparable to the FDL Sharpe Ratio of 1.95. The chart below compares the historical Sharpe Ratios of VYM and FDL, 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

VYM vs. FDL - Drawdown Comparison

The maximum VYM drawdown since its inception was -56.98%, smaller than the maximum FDL drawdown of -65.93%. Use the drawdown chart below to compare losses from any high point for VYM and FDL.

Drawdown Indicators

	VYM	FDL	Difference
Max Drawdown Largest peak-to-trough decline	-56.98%	-65.93%	+8.95%
Max Drawdown (1Y) Largest decline over 1 year	-6.69%	-4.27%	-2.42%
Max Drawdown (3Y) Largest decline over 3 years	-14.46%	-12.24%	-2.22%
Max Drawdown (5Y) Largest decline over 5 years	-15.84%	-16.46%	+0.62%
Max Drawdown (10Y) Largest decline over 10 years	-35.21%	-41.40%	+6.19%
Current Drawdown Current decline from peak	-1.28%	-3.09%	+1.81%
Average Drawdown Average peak-to-trough decline	-7.18%	-9.64%	+2.46%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.80%	1.81%	-0.01%

Volatility

VYM vs. FDL - Volatility Comparison

The current volatility for Vanguard High Dividend Yield ETF (VYM) is 3.02%, while First Trust Morningstar Dividend Leaders Index Fund (FDL) has a volatility of 3.72%. This indicates that VYM experiences smaller price fluctuations and is considered to be less risky than FDL based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VYM	FDL	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.02%	3.72%	-0.70%
Volatility (6M) Calculated over the trailing 6-month period	7.64%	8.09%	-0.45%
Volatility (1Y) Calculated over the trailing 1-year period	10.39%	11.54%	-1.15%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.93%	14.31%	-0.38%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.32%	17.11%	-0.79%

VYM vs. FDL - Expense Ratio Comparison

VYM has a 0.04% expense ratio, which is lower than FDL's 0.43% expense ratio.

Dividends

VYM vs. FDL - Dividend Comparison

VYM's dividend yield for the trailing twelve months is around 2.30%, less than FDL's 3.70% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FDL First Trust Morningstar Dividend Leaders Index Fund	3.70%	4.04%	4.96%	4.58%	3.58%	4.59%	4.48%	3.75%	3.97%	3.18%	2.93%	3.65%
VYM Vanguard High Dividend Yield ETF	2.30%	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 VYM and FDL in my portfolio?

VYM and FDL have a correlation of 0.62, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VYM or FDL?

FDL has higher volatility (3.72%) compared to VYM (3.02%). In terms of maximum drawdown, VYM dropped -56.98% vs FDL's -65.93%.

Which ETF is better, VYM or FDL?

On 10-year performance, VYM leads with 11.98% vs 11.12% for FDL. On fees, VYM is cheaper at 0.04% per year. On volatility, VYM has been the lower-risk option at 3.02%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VYM or FDL?

Over the 10-year period, VYM has performed better with a 11.98% return vs 11.12%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VYM or FDL?

VYM is cheaper with a 0.04% expense ratio, compared with 0.43% for FDL.

Which ETF pays a higher dividend yield, VYM or FDL?

FDL has the higher dividend yield at 3.70%, compared with 2.30% for VYM.

What is the main difference between VYM and FDL?

VYM is categorized as Dividend, while FDL is Large Cap Value Equities. VYM tracks FTSE High Dividend Yield Index, while FDL tracks Morningstar Dividend Leaders Index. They also come from different issuers: Vanguard and First Trust. Their fees differ too: 0.04% for VYM and 0.43% for FDL.

Which has better risk-adjusted returns?

VYM currently has the higher Sharpe Ratio (2.33 vs 1.95), 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.