FAD vs VOO
First Trust Multi Cap Growth AlphaDEX Fund vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. FAD delivered stronger 1-year returns. FAD offers more diversification with 677 holdings.
Side-by-Side Comparison
| Metric | FAD | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.63% | 0.03% | |
| AUM | $608M | $997.4B | |
| Dividend Yield | 0.10% | 1.08% | |
| Holdings | 677 | 509 | |
| YTD Return | +18.37% | +14.27% | |
| 1Y Return | +27.56% | +21.79% | |
| 3Y Return (annualized) | +23.48% | +22.19% | |
| 5Y Return (annualized) | +10.46% | +13.28% | |
| Volatility (annualized) | 18.7% | 14.2% | |
| Max Drawdown | -54.5% | -34.3% | |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | May 8, 2007 | Sep 7, 2010 |
FAD vs VOO Performance
First Trust Multi Cap Growth AlphaDEX Fund (FAD) 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 FAD returned +27.56% while VOO returned +21.79%. Year to date, FAD is up 18.37% versus a gain of 14.27% for VOO.
Over three years, FAD compounded at +23.48% per year against +22.19% for VOO; over five years the annualized figures are +10.46% and +13.28% respectively. Across the full 16-year window we track, VOO has the edge at +13.59% annualized vs +10.31%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FAD has been the more volatile fund, with annualized monthly volatility of 18.7% compared with 14.2% 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 -54.5% for FAD 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 0.91. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
FAD charges 0.63% per year while VOO charges 0.03%. On a $10,000 position that is $63 vs $3 annually, a gap of $60 per year that compounds over a long holding period. On income, FAD currently yields 0.10% against 1.08% for VOO.
Holdings Overlap
FAD and VOO share 153 holdings out of 1015 unique holdings combined, representing a 21.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FAD or VOO?
FAD has an expense ratio of 0.63% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $60 per year of difference.
Which performed better, FAD or VOO?
Over the past year FAD returned +27.56% vs +21.79% for VOO, so FAD leads on 1-year performance. Over the longest common window we track (16 years), FAD annualized +10.31% vs +13.59% for VOO. Past performance does not guarantee future results.
Which is riskier, FAD or VOO?
FAD has been the more volatile fund at 18.7% annualized versus 14.2% for VOO. Worst drawdown: FAD -54.5% vs VOO -34.3%.
Should I hold both FAD and VOO?
FAD and VOO have a monthly-return correlation of 0.91, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between FAD and VOO?
FAD and VOO share 153 common holdings with a 21.0% weight overlap. Combined, they hold 1015 unique securities.
Which pays a higher dividend, FAD or VOO?
FAD yields 0.10% while VOO yields 1.08%, so VOO currently pays the higher dividend yield.
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