AFDM vs VOO
First Trust Active Factor International ETF vs Vanguard S&P 500 ETF
Which is better, AFDM or VOO?
Each has led over a different period.
VOO has a lower expense ratio. AFDM led over 1Y, VOO over 3Y, 5Y and the full window. AFDM is less concentrated, with 22.5% of the fund in its ten largest positions against 37.6%.
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 | AFDM | VOO |
|---|---|---|
| Expense Ratio | 0.83% | 0.03%Best |
| AUM | $158M | $1.0T |
| Dividend Yield | 3.02% | 1.04% |
| Holdings | 146 | 506 |
| YTD Return | +11.92% | +13.59%Best |
| 1Y Return | +19.65%Best | +16.33% |
| 3Y Return (annualized) | +22.61% | +23.81%Best |
| 5Y Return (annualized) | +9.78% | +14.02%Best |
| Volatility (annualized) | 15.3% | 15.1%Best |
| Max Drawdown | -42.4% | -34.3%Best |
| $10,000 over 5 years | $15,945 | $19,271Best |
| Top 10 Weight | 22.5%Best | 37.6% |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Blend |
| Inception | Apr 14, 2016 | Sep 7, 2010 |
Volatility and max drawdown are measured over the window both funds cover: Apr 14, 2016 to Oct 2, 2026 (10.5 years).
AFDM vs VOO 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 10.5 years both funds cover.
AFDM vs VOO Performance
First Trust Active Factor International ETF (AFDM) is an ETF from First Trust Portfolios (US) and Vanguard S&P 500 ETF (VOO) is an ETF from Vanguard (US). Over the past year AFDM returned +19.65% while VOO returned +16.33%. Year to date, AFDM is up 11.92% versus a gain of 13.59% for VOO.
Over three years, AFDM compounded at +22.61% per year against +23.81% for VOO; over five years the annualized figures are +9.78% and +14.02% respectively. Across the full 11-year window we track, VOO has the edge at +14.21% annualized vs +7.67%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
AFDM has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 15.1% for VOO. 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 -42.4% for AFDM and -34.3% for VOO. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.83. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
AFDM charges 0.83% per year while VOO charges 0.03%. On a $10,000 position that is $83 vs $3 annually, a gap of $80 per year that compounds over a long holding period. On income, AFDM currently yields 3.02% against 1.04% for VOO.
Holdings Overlap
We hold position weights for 146 holdings in AFDM and 494 in VOO, totalling 98.0% and 99.5% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 146 positions we hold weights for in AFDM and 494 in VOO, against full books of 146 and 506.
What only one of them owns
Our book lists 487 positions for VOO that do not appear in our book for AFDM (99.2% of the fund), and 6 for AFDM that do not appear in VOO (6.3%).
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.
You are not choosing between two funds in isolation.
Whichever of AFDM and VOO you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, AFDM or VOO?
AFDM has an expense ratio of 0.83% while VOO charges 0.03%. VOO is the cheaper option, by $80 a year on a $10,000 investment.
Which performed better, AFDM or VOO?
Over the past year AFDM returned +19.65% vs +16.33% for VOO, so AFDM leads on 1-year performance. Over the longest common window we track (11 years), AFDM annualized +7.67% vs +14.21% for VOO. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, AFDM or VOO?
AFDM has been the more volatile fund at 15.3% annualized versus 15.1% for VOO. Worst drawdown: AFDM -42.4% vs VOO -34.3%.
Should I hold both AFDM and VOO?
AFDM and VOO have a monthly-return correlation of 0.83, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, AFDM or VOO?
AFDM yields 3.02% while VOO yields 1.04%, so AFDM currently pays the higher dividend yield.
Is VOO better than AFDM?
VOO has a lower expense ratio. AFDM led over 1Y, VOO over 3Y, 5Y and the full window. AFDM is less concentrated, with 22.5% of the fund in its ten largest positions against 37.6%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.