FCEF vs VTI
First Trust Income Opportunities ETF vs Vanguard Morningstar Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. VTI delivered stronger 1-year returns. VTI offers more diversification with 3,543 holdings.
Side-by-Side Comparison
| Metric | FCEF | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 3.69% | 0.03% | |
| AUM | $83M | $666.9B | |
| Dividend Yield | 6.88% | 1.07% | |
| Holdings | 62 | 3,543 | |
| YTD Return | +10.09% | +13.38% | |
| 1Y Return | +14.73% | +21.12% | |
| 3Y Return (annualized) | +16.17% | +21.85% | |
| 5Y Return (annualized) | +6.20% | +12.44% | |
| Volatility (annualized) | 14.6% | 15.3% | |
| Max Drawdown | -45.1% | -56.6% | |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) | |
| Category | Allocation/Balanced | Equity | |
| Inception | Sep 27, 2016 | May 24, 2001 |
FCEF vs VTI Performance
First Trust Income Opportunities ETF (FCEF) 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 FCEF returned +14.73% while VTI returned +21.12%. Year to date, FCEF is up 10.09% versus a gain of 13.38% for VTI.
Over three years, FCEF compounded at +16.17% per year against +21.85% for VTI; over five years the annualized figures are +6.20% and +12.44% respectively. Across the full 10-year window we track, VTI has the edge at +8.10% annualized vs +5.85%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTI has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 14.6% for FCEF. 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 -45.1% for FCEF 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 0.92. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
FCEF charges 3.69% per year while VTI charges 0.03%. On a $10,000 position that is $369 vs $3 annually, a gap of $366 per year that compounds over a long holding period. On income, FCEF currently yields 6.88% against 1.07% for VTI.
Holdings Overlap
FCEF and VTI share 0 holdings out of 2847 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FCEF or VTI?
FCEF has an expense ratio of 3.69% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $366 per year of difference.
Which performed better, FCEF or VTI?
Over the past year FCEF returned +14.73% vs +21.12% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (10 years), FCEF annualized +5.85% vs +8.10% for VTI. Past performance does not guarantee future results.
Which is riskier, FCEF or VTI?
VTI has been the more volatile fund at 15.3% annualized versus 14.6% for FCEF. Worst drawdown: FCEF -45.1% vs VTI -56.6%.
Should I hold both FCEF and VTI?
FCEF and VTI have a monthly-return correlation of 0.92, 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 FCEF and VTI?
FCEF and VTI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2847 unique securities.
Which pays a higher dividend, FCEF or VTI?
FCEF yields 6.88% while VTI yields 1.07%, so FCEF currently pays the higher dividend yield.
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