FCT vs VOO
First Trust Senior Floating Rate Income Fund II vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. VOO delivered stronger 1-year returns. VOO offers more diversification with 509 holdings.
Side-by-Side Comparison
| Metric | FCT | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 1.67% | 0.03% | |
| AUM | $252M | $997.4B | |
| Dividend Yield | 11.84% | 1.08% | |
| Holdings | 221 | 509 | |
| YTD Return | +2.69% | +14.27% | |
| 1Y Return | +7.32% | +21.79% | |
| 3Y Return (annualized) | +10.56% | +22.19% | |
| 5Y Return (annualized) | +5.74% | +13.28% | |
| Volatility (annualized) | 14.8% | 14.2% | |
| Max Drawdown | -72.7% | -34.3% | |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | May 25, 2004 | Sep 7, 2010 |
FCT vs VOO Performance
First Trust Senior Floating Rate Income Fund II (FCT) 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 FCT returned +7.32% while VOO returned +21.79%. Year to date, FCT is up 2.69% versus a gain of 14.27% for VOO.
Over three years, FCT compounded at +10.56% per year against +22.19% for VOO; over five years the annualized figures are +5.74% and +13.28% respectively. Across the full 16-year window we track, VOO has the edge at +13.59% annualized vs -0.76%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FCT has been the more volatile fund, with annualized monthly volatility of 14.8% 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 -72.7% for FCT 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 0.59. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FCT charges 1.67% per year while VOO charges 0.03%. On a $10,000 position that is $167 vs $3 annually, a gap of $164 per year that compounds over a long holding period. On income, FCT currently yields 11.84% against 1.08% for VOO.
Holdings Overlap
FCT and VOO share 0 holdings out of 611 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, FCT or VOO?
FCT has an expense ratio of 1.67% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $164 per year of difference.
Which performed better, FCT or VOO?
Over the past year FCT returned +7.32% vs +21.79% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (16 years), FCT annualized -0.76% vs +13.59% for VOO. Past performance does not guarantee future results.
Which is riskier, FCT or VOO?
FCT has been the more volatile fund at 14.8% annualized versus 14.2% for VOO. Worst drawdown: FCT -72.7% vs VOO -34.3%.
Should I hold both FCT and VOO?
FCT and VOO have a monthly-return correlation of 0.59, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FCT and VOO?
FCT and VOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 611 unique securities.
Which pays a higher dividend, FCT or VOO?
FCT yields 11.84% while VOO yields 1.08%, so FCT currently pays the higher dividend yield.
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