AFSM vs VOO
First Trust Active Factor Small Cap ETF vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. AFSM delivered stronger 1-year returns. VOO offers more diversification with 509 holdings.
Side-by-Side Comparison
| Metric | AFSM | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.75% | 0.03% | |
| AUM | $123M | $997.4B | |
| Dividend Yield | 0.51% | 1.08% | |
| Holdings | 335 | 509 | |
| YTD Return | +24.61% | +12.95% | |
| 1Y Return | +31.25% | +20.69% | |
| 3Y Return (annualized) | +19.67% | +22.09% | |
| 5Y Return (annualized) | +10.85% | +13.40% | |
| Volatility (annualized) | 22.1% | 14.1% | |
| Max Drawdown | -43.5% | -34.3% | |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Dec 4, 2019 | Sep 7, 2010 |
AFSM vs VOO Performance
First Trust Active Factor Small Cap ETF (AFSM) is a ETF from First Trust Portfolios (US) and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year AFSM returned +31.25% while VOO returned +20.69%. Year to date, AFSM is up 24.61% versus a gain of 12.95% for VOO.
Over three years, AFSM compounded at +19.67% per year against +22.09% for VOO; over five years the annualized figures are +10.85% and +13.40% respectively. Across the full 7-year window we track, VOO has the edge at +13.50% annualized vs +12.00%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
AFSM has been the more volatile fund, with annualized monthly volatility of 22.1% compared with 14.1% 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 -43.5% for AFSM and -34.3% for VOO. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.84. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
AFSM charges 0.75% per year while VOO charges 0.03%. On a $10,000 position that is $75 vs $3 annually, a gap of $72 per year that compounds over a long holding period. On income, AFSM currently yields 0.51% against 1.08% for VOO.
Holdings Overlap
Frequently Asked Questions
Which is cheaper, AFSM or VOO?
AFSM has an expense ratio of 0.75% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $72 per year of difference.
Which performed better, AFSM or VOO?
Over the past year AFSM returned +31.25% vs +20.69% for VOO, so AFSM leads on 1-year performance. Over the longest common window we track (7 years), AFSM annualized +12.00% vs +13.50% for VOO. Past performance does not guarantee future results.
Which is riskier, AFSM or VOO?
AFSM has been the more volatile fund at 22.1% annualized versus 14.1% for VOO. Worst drawdown: AFSM -43.5% vs VOO -34.3%.
Should I hold both AFSM and VOO?
AFSM and VOO have a monthly-return correlation of 0.84, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between AFSM and VOO?
AFSM and VOO share 2 common holdings with a 0.2% weight overlap. Combined, they hold 836 unique securities.
Which pays a higher dividend, AFSM or VOO?
AFSM yields 0.51% while VOO yields 1.08%, so VOO currently pays the higher dividend yield.
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