FAD vs VTI
First Trust Multi Cap Growth AlphaDEX Fund vs Vanguard Morningstar Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. FAD delivered stronger 1-year returns. VTI offers more diversification with 3,543 holdings.
Side-by-Side Comparison
| Metric | FAD | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.63% | 0.03% | |
| AUM | $608M | $666.9B | |
| Dividend Yield | 0.10% | 1.07% | |
| Holdings | 677 | 3,543 | |
| YTD Return | +15.70% | +13.67% | |
| 1Y Return | +25.82% | +22.17% | |
| 3Y Return (annualized) | +23.20% | +21.93% | |
| 5Y Return (annualized) | +10.44% | +12.51% | |
| Volatility (annualized) | 18.7% | 15.3% | |
| Max Drawdown | -54.5% | -56.6% | |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | May 8, 2007 | May 24, 2001 |
FAD vs VTI Performance
First Trust Multi Cap Growth AlphaDEX Fund (FAD) 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 FAD returned +25.82% while VTI returned +22.17%. Year to date, FAD is up 15.70% versus a gain of 13.67% for VTI.
Over three years, FAD compounded at +23.20% per year against +21.93% for VTI; over five years the annualized figures are +10.44% and +12.51% respectively. Across the full 19-year window we track, FAD has the edge at +10.17% annualized vs +8.11%. 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 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 -54.5% for FAD 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 0.93. 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 VTI 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 1.07% for VTI.
Holdings Overlap
FAD and VTI share 544 holdings out of 2906 unique holdings combined, representing a 22.8% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FAD or VTI?
FAD has an expense ratio of 0.63% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $60 per year of difference.
Which performed better, FAD or VTI?
Over the past year FAD returned +25.82% vs +22.17% for VTI, so FAD leads on 1-year performance. Over the longest common window we track (19 years), FAD annualized +10.17% vs +8.11% for VTI. Past performance does not guarantee future results.
Which is riskier, FAD or VTI?
FAD has been the more volatile fund at 18.7% annualized versus 15.3% for VTI. Worst drawdown: FAD -54.5% vs VTI -56.6%.
Should I hold both FAD and VTI?
FAD and VTI have a monthly-return correlation of 0.93, 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 VTI?
FAD and VTI share 544 common holdings with a 22.8% weight overlap. Combined, they hold 2906 unique securities.
Which pays a higher dividend, FAD or VTI?
FAD yields 0.10% while VTI yields 1.07%, so VTI currently pays the higher dividend yield.
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