AFSM vs VTI
First Trust Active Factor Small Cap ETF vs Vanguard Morningstar Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. AFSM delivered stronger 1-year returns. VTI offers more diversification with 3,543 holdings.
Side-by-Side Comparison
| Metric | AFSM | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.75% | 0.03% | |
| AUM | $123M | $666.9B | |
| Dividend Yield | 0.51% | 1.07% | |
| Holdings | 335 | 3,543 | |
| YTD Return | +26.44% | +14.31% | |
| 1Y Return | +33.17% | +22.11% | |
| 3Y Return (annualized) | +20.18% | +22.37% | |
| 5Y Return (annualized) | +11.01% | +12.40% | |
| Volatility (annualized) | 22.1% | 15.3% | |
| Max Drawdown | -43.5% | -56.6% | |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Dec 4, 2019 | May 24, 2001 |
AFSM vs VTI Performance
First Trust Active Factor Small Cap ETF (AFSM) is a ETF from First Trust Portfolios (US) and Vanguard Morningstar Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year AFSM returned +33.17% while VTI returned +22.11%. Year to date, AFSM is up 26.44% versus a gain of 14.31% for VTI.
Over three years, AFSM compounded at +20.18% per year against +22.37% for VTI; over five years the annualized figures are +11.01% and +12.40% respectively. Across the full 7-year window we track, AFSM has the edge at +12.24% annualized vs +8.14%. 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 15.3% 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 -43.5% for AFSM and -56.6% for VTI. 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 0.88. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
AFSM charges 0.75% per year while VTI 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 1.07% for VTI.
Holdings Overlap
AFSM and VTI share 245 holdings out of 2875 unique holdings combined, representing a 0.7% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, AFSM or VTI?
AFSM has an expense ratio of 0.75% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $72 per year of difference.
Which performed better, AFSM or VTI?
Over the past year AFSM returned +33.17% vs +22.11% for VTI, so AFSM leads on 1-year performance. Over the longest common window we track (7 years), AFSM annualized +12.24% vs +8.14% for VTI. Past performance does not guarantee future results.
Which is riskier, AFSM or VTI?
AFSM has been the more volatile fund at 22.1% annualized versus 15.3% for VTI. Worst drawdown: AFSM -43.5% vs VTI -56.6%.
Should I hold both AFSM and VTI?
AFSM and VTI have a monthly-return correlation of 0.88, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between AFSM and VTI?
AFSM and VTI share 245 common holdings with a 0.7% weight overlap. Combined, they hold 2875 unique securities.
Which pays a higher dividend, AFSM or VTI?
AFSM yields 0.51% while VTI yields 1.07%, so VTI currently pays the higher dividend yield.
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