AFEM vs VTI
First Trust Active Factor Emerging Markets ETF vs Vanguard Morningstar Total Stock Market ETF
Which is better, AFEM or VTI?
Each has led over a different period.
VTI has a lower expense ratio. AFEM led over 1Y and 3Y, VTI over 5Y and the full window. VTI is less concentrated, with 33.3% of the fund in its ten largest positions against 36.1%.
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 | AFEM | VTI |
|---|---|---|
| Expense Ratio | 0.99% | 0.03%Best |
| AUM | $83M | $690.1B |
| Dividend Yield | 2.51% | 1.03% |
| Holdings | 178 | 3,524 |
| YTD Return | +25.14%Best | +13.35% |
| 1Y Return | +32.80%Best | +15.92% |
| 3Y Return (annualized) | +27.13%Best | +23.41% |
| 5Y Return (annualized) | +12.77% | +12.83%Best |
| Volatility (annualized) | 17.1% | 15.6%Best |
| Max Drawdown | -45.6% | -35.0%Best |
| $10,000 over 5 years | $18,238 | $18,286Best |
| Top 10 Weight | 36.1% | 33.3%Best |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Blend |
| Inception | Jun 14, 2016 | May 24, 2001 |
Volatility and max drawdown are measured over the window both funds cover: Jun 15, 2016 to Oct 2, 2026 (10.3 years).
AFEM vs VTI 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 10.3 years both funds cover.
AFEM vs VTI Performance
First Trust Active Factor Emerging Markets ETF (AFEM) is an ETF from First Trust Portfolios (US) and Vanguard Morningstar Total Stock Market ETF (VTI) is an ETF from Vanguard (US). Over the past year AFEM returned +32.80% while VTI returned +15.92%. Year to date, AFEM is up 25.14% versus a gain of 13.35% for VTI.
Over three years, AFEM compounded at +27.13% per year against +23.41% for VTI; over five years the annualized figures are +12.77% and +12.83% respectively. Across the full 10-year window we track, VTI has the edge at +14.03% annualized vs +9.04%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
AFEM has been the more volatile fund, with annualized monthly volatility of 17.1% compared with 15.6% for VTI. 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 -45.6% for AFEM and -35.0% for VTI. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.73. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
AFEM charges 0.99% per year while VTI charges 0.03%. On a $10,000 position that is $99 vs $3 annually, a gap of $96 per year that compounds over a long holding period. On income, AFEM currently yields 2.51% against 1.03% for VTI.
Holdings Overlap
We hold position weights for 178 holdings in AFEM and 3,463 in VTI, totalling 99.6% and 98.1% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
The two holdings books were reported 46 days apart, AFEM as of Sep 15, 2026 and VTI as of Jul 31, 2026, so some of the difference between them is the time between the two reports rather than the funds.
0 positions in common, counted across the 178 positions we hold weights for in AFEM and 3,463 in VTI, against full books of 178 and 3,524.
What only one of them owns
Our book lists 1,150 positions for VTI that do not appear in our book for AFEM (97.5% of the fund), and 4 for AFEM that do not appear in VTI (2.2%).
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 AFEM and VTI 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, AFEM or VTI?
AFEM has an expense ratio of 0.99% while VTI charges 0.03%. VTI is the cheaper option, by $96 a year on a $10,000 investment.
Which performed better, AFEM or VTI?
Over the past year AFEM returned +32.80% vs +15.92% for VTI, so AFEM leads on 1-year performance. Over the longest common window we track (10 years), AFEM annualized +9.04% vs +14.03% for VTI. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, AFEM or VTI?
AFEM has been the more volatile fund at 17.1% annualized versus 15.6% for VTI. Worst drawdown: AFEM -45.6% vs VTI -35.0%.
Should I hold both AFEM and VTI?
AFEM and VTI have a monthly-return correlation of 0.73, 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, AFEM or VTI?
AFEM yields 2.51% while VTI yields 1.03%, so AFEM currently pays the higher dividend yield.
Is VTI better than AFEM?
VTI has a lower expense ratio. AFEM led over 1Y and 3Y, VTI over 5Y and the full window. VTI is less concentrated, with 33.3% of the fund in its ten largest positions against 36.1%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.