FCPI vs VYM

FCPIBFidelity Stocks for Inflation ETF

VYMAVanguard High Dividend Yield ETF

In short

FCPI A multifactor fund with an inflation twist: value, quality and momentum screens first, then a tilt toward industries that tend to outperform when prices are rising. All for 0.15% a year.

VYM The no-frills dividend workhorse. VYM buys the higher-yielding end of the US market, roughly 600 names, for four basis points: no quality screen, no dividend-growth-streak test, just yield, at scale since 2006.

Stated mandate

FCPI The fund seeks investment returns that generally correspond, before fees and expenses, to the performance of the Fidelity Stocks for Inflation Factor IndexSM.

VYM The Fund seeks to track a benchmark index measuring the investment return of common stocks from companies characterized by high dividend yields.

Why people hold it

• FCPI 0.15% a year, under half the 0.32% median for multifactor peers. The factor tilt isn't being eaten by the fee.
• Value, quality and momentum is table stakes. The inflation overlay, emphasizing industries that tend to outperform in inflationary environments, is what sets this one apart.sec.gov
• Live since 2019 and one of the stronger implementations in a crowded multifactor field, with a rules-based Fidelity index doing the picking.
• About 100 large and mid-cap US stocks, paying quarterly.sec.gov

• VYM Four basis points a year, against a peer-group median near 0.32%. Cheaper than cohort neighbors VONV (0.06%) and FNDX (0.25%).
• Running since 2006 and now a multi-billion-dollar fund that trades actively, so ordinary orders tend to fill at tight spreads.
• Simple mandate: track the FTSE High Dividend Yield Index of US common stocks screened on yield. No manager discretion, no options overlay, plain 1940-Act fund.vanguard.com
• Pays quarterly, and among 100-plus value and multifactor rivals it stands as one of the strongest overall packages in the group.

Worth knowing

• FCPI It trades thinly. Spreads can run wider than on heavily traded peers like VYM or IUSG, which matters most on larger orders.
• Roughly 100 names, not 500. Single stocks and the industry tilts carry real weight, so results can drift from the broad market.
• The benchmark is Fidelity's own proprietary index rather than a third-party one, and the inflation screen has only been running in live markets since 2019.sec.gov

• VYM The screen is yield, not payout growth or dividend quality, so a company can qualify simply because its share price fell.
• This is a value slice by design, tilted to established payers, so it behaves differently from a total US market fund.
• Roughly 600 holdings, but weight leans toward the largest payers, so the top of the roster does more of the work than the count suggests.

Full FCPI profile⁠

Full VYM profile⁠