FAD vs VTI
First Trust Multi Cap Growth AlphaDEX Fund vs Vanguard Morningstar Total Stock Market ETF
Which is better, FAD or VTI?
Mid Cap Growth against Large Cap Blend.
VTI has a lower expense ratio. FAD led over the full window, VTI over 1Y, 3Y and 5Y. The two have moved almost in lockstep, correlation 0.93. FAD is less concentrated, with 5.0% of the fund in its ten largest positions against 33.3%.
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 | FAD | VTI |
|---|---|---|
| Expense Ratio | 0.63% | 0.03%Best |
| AUM | $571M | $666.9B |
| Dividend Yield | 0.10% | 1.03% |
| Holdings | 677 | 3,543 |
| YTD Return | +10.79% | +12.43%Best |
| 1Y Return | +13.29% | +15.92%Best |
| 3Y Return (annualized) | +22.33% | +22.42%Best |
| 5Y Return (annualized) | +9.16% | +12.37%Best |
| Volatility (annualized) | 18.6% | 16.0%Best |
| Max Drawdown | -54.5%Best | -56.6% |
| $10,000 over 5 years | $15,499 | $17,916Best |
| Top 10 Weight | 5.0%Best | 33.3% |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Mid Cap Growth | Large Cap Blend |
| Inception | May 8, 2007 | May 24, 2001 |
Volatility and max drawdown are measured over the window both funds cover: May 10, 2007 to Sep 28, 2026 (19.4 years).
FAD 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 19.4 years both funds cover.
FAD vs VTI Performance
First Trust Multi Cap Growth AlphaDEX Fund (FAD) 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 FAD returned +13.29% while VTI returned +15.92%. Year to date, FAD is up 10.79% versus a gain of 12.43% for VTI.
Over three years, FAD compounded at +22.33% per year against +22.42% for VTI; over five years the annualized figures are +9.16% and +12.37% respectively. Across the full 19-year window we track, FAD has the edge at +9.87% annualized vs +9.16%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FAD has been the more volatile fund, with annualized monthly volatility of 18.6% compared with 16.0% 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 what each fund did in the worst stretch of the window measured above.
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 1.03% for VTI.
Holdings Overlap
96.4% of FAD's money is in holdings VTI also owns. 54.3% of VTI's money is in holdings FAD also owns.
Most of FAD is already inside VTI. Owning both mostly buys the same companies twice.
650 positions in common, counted across the 663 positions we hold weights for in FAD and 3,463 in VTI, against full books of 677 and 3,543.
What only one of them owns
Our book lists 726 positions for VTI that do not appear in our book for FAD (43.2% of the fund), and 7 for FAD that do not appear in VTI (0.7%).
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.
Top Shared Holdings
| Stock | Weight in FAD | Weight in VTI | Difference |
|---|---|---|---|
| NVDANvidia Corp | 0.31% | 6.40% | 6.09% |
| AAPLApple, Inc | 0.31% | 6.29% | 5.98% |
| AMZNAmazon.Com Inc | 0.31% | 3.65% | 3.34% |
| GOOGLAlphabet Inc,class A | 0.37% | 2.90% | 2.53% |
| AVGOBroadcom Inc | 0.28% | 2.56% | 2.28% |
| METAMeta Platforms Inc | 0.09% | 1.70% | 1.61% |
| LLYEli Lilly & Co. | 0.37% | 1.35% | 0.98% |
| MUMicron Technology, Inc. | 0.40% | 1.29% | 0.89% |
| JPMJpmorgan Chase | 0.21% | 1.31% | 1.10% |
| AMDAdvanced Micro Devices Inc | 0.39% | 1.08% | 0.69% |
96.4% of FAD is already inside VTI.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
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, by $60 a year on a $10,000 investment.
Which performed better, FAD or VTI?
Over the past year FAD returned +13.29% vs +15.92% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (19 years), FAD annualized +9.87% vs +9.16% for VTI. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FAD or VTI?
FAD has been the more volatile fund at 18.6% annualized versus 16.0% 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. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
What is the holdings overlap between FAD and VTI?
96.4% of FAD's money is in holdings VTI also owns. 54.3% of VTI's is in holdings FAD also owns. They hold 650 positions in common, counted across the 663 positions we hold weights for in FAD and 3,463 in VTI.
Which pays a higher dividend, FAD or VTI?
FAD yields 0.10% while VTI yields 1.03%, so VTI currently pays the higher dividend yield.
Is VTI better than FAD?
VTI has a lower expense ratio. FAD led over the full window, VTI over 1Y, 3Y and 5Y. The two have moved almost in lockstep, correlation 0.93. FAD is less concentrated, with 5.0% of the fund in its ten largest positions against 33.3%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.