FZROX vs VYM
Fidelity ZERO Total Market Index Fund vs Vanguard High Dividend Yield ETF
Which is better, FZROX or VYM?
Large Cap Blend against Large Cap Value.
FZROX has a lower expense ratio. FZROX led over 1Y, 3Y, 5Y and the full window. VYM is less concentrated, with 25.8% of the fund in its ten largest positions against 33.4%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | FZROX | VYM |
|---|---|---|
| Expense Ratio | 0.00%Best | 0.04% |
| AUM | $3.1B | $78.9B |
| Dividend Yield | 0.91% | 2.37% |
| Holdings | 2,670 | 608 |
| YTD Price Return | +14.47%Best | +9.88% |
| 1Y Price Return | +16.93%Best | +13.19% |
| 3Y Price Return (annualized) | +21.19%Best | +15.41% |
| 5Y Price Return (annualized) | +10.95%Best | +8.34% |
| Volatility (annualized) | 15.2% | 14.1%Best |
| Max Drawdown | -26.9% | -17.5%Best |
| $10,000 over 5 years | $16,813Best | $14,926 |
| Top 10 Weight | 33.4% | 25.8%Best |
| Fund Family | Fidelity Investments (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Value |
| Inception | Aug 2, 2018 | Nov 10, 2006 |
Returns are price returns and exclude distributions, because our data feed carries no adjusted close for FZROX. Both funds are measured the same way, so the comparison holds. FZROX yields 0.91% and VYM 2.37% on top.
Volatility and max drawdown are measured over the window both funds cover: Oct 15, 2021 to Oct 13, 2026 (5 years).
FZROX vs VYM growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 5 years both funds cover. Prices exclude distributions, on both funds alike.
FZROX vs VYM Performance
Fidelity ZERO Total Market Index Fund (FZROX) is a mutual fund from Fidelity Investments (US) and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year FZROX returned +16.93% while VYM returned +13.19%. Year to date, FZROX is up 14.47% versus a gain of 9.88% for VYM.
Over three years, FZROX compounded at +21.19% per year against +15.41% for VYM; over five years the annualized figures are +10.95% and +8.34% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FZROX has been the more volatile fund, with annualized monthly volatility of 15.2% compared with 14.1% 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 -26.9% for FZROX and -17.5% for VYM. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.78. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FZROX charges 0.00% per year while VYM charges 0.04%. On a $10,000 position that is $0 vs $4 annually, a gap of $4 per year that compounds over a long holding period. On income, FZROX currently yields 0.91% against 2.37% for VYM.
Structure and taxes
FZROX is a mutual fund and VYM is an ETF. A mutual fund prices once a day at net asset value and may carry a purchase minimum. An ETF trades through the day at whatever the market pays for it.
In a taxable account the difference that usually matters is distributions. An ETF can meet redemptions in kind, so it rarely has to sell holdings and rarely passes a capital gain to the people who held it; a mutual fund that sells holdings to meet redemptions can distribute a realised gain at year end to everyone still in the fund, whether or not they sold anything themselves. In a tax-deferred account that difference largely disappears. Both are descriptions of how the two wrappers work, not a recommendation.
Tax-loss harvesting works on either wrapper.
Holdings Overlap
33.1% of FZROX's money is in holdings VYM also owns. 96.7% of VYM's money is in holdings FZROX also owns.
Most of VYM is already inside FZROX. Owning both mostly buys the same companies twice.
548 positions in common, counted across the 2,127 positions we hold weights for in FZROX and 602 in VYM, against full books of 2,670 and 608.
What only one of them owns
Our book lists 35 positions for VYM that do not appear in our book for FZROX (1.3% of the fund), and 728 for FZROX that do not appear in VYM (65.0%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in FZROX | Weight in VYM | Difference |
|---|---|---|---|
| AVGOBroadcom Inc | 2.54% | 6.94% | 4.40% |
| JPMJpmorgan Chase | 1.30% | 3.83% | 2.53% |
| XOMExxon Mobil Corp. | 0.89% | 2.70% | 1.81% |
| JNJJohnson & Johnson - Common | 0.85% | 2.58% | 1.73% |
| ABBVAbbvie Inc Accenture Plc, Class A | 0.61% | 1.83% | 1.22% |
| CSCOCisco Systems Inc. - Ordinary Shares | 0.63% | 1.76% | 1.13% |
| BACBank Of America Corp. | 0.56% | 1.65% | 1.09% |
| CVXChevron Corp. | 0.51% | 1.54% | 1.03% |
| CATCaterpillar, Inc. | 0.52% | 1.46% | 0.94% |
| UNHUnited Health Group Inc. | 0.52% | 1.42% | 0.90% |
96.7% of VYM is already inside FZROX.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, FZROX or VYM?
FZROX has an expense ratio of 0.00% while VYM charges 0.04%. FZROX is the cheaper option, by $4 a year on a $10,000 investment.
Which performed better, FZROX or VYM?
Over the past year FZROX returned +16.93% vs +13.19% for VYM, so FZROX leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FZROX or VYM?
FZROX has been the more volatile fund at 15.2% annualized versus 14.1% for VYM. Worst drawdown: FZROX -26.9% vs VYM -17.5%.
Should I hold both FZROX and VYM?
FZROX and VYM have a monthly-return correlation of 0.78, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between FZROX and VYM?
96.7% of VYM's money is in holdings FZROX also owns. 96.7% of VYM's is in holdings FZROX also owns. They hold 548 positions in common, counted across the 2,127 positions we hold weights for in FZROX and 602 in VYM.
Which pays a higher dividend, FZROX or VYM?
FZROX yields 0.91% while VYM yields 2.37%, so VYM currently pays the higher dividend yield.
Is it better to hold FZROX or VYM in a taxable account?
VYM is an ETF and FZROX is a mutual fund. An ETF can meet redemptions in kind, so it rarely distributes a capital gain to the people holding it. A mutual fund that sells holdings to meet redemptions can pass a realised gain to every holder at year end. In a tax-deferred account that difference largely disappears. This is information, not a recommendation.
Is VYM better than FZROX?
FZROX has a lower expense ratio. FZROX led over 1Y, 3Y, 5Y and the full window. VYM is less concentrated, with 25.8% of the fund in its ten largest positions against 33.4%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.