FCT vs VTI
First Trust Senior Floating Rate Income Fund II 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 | FCT | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 1.67% | 0.03% | |
| AUM | $252M | $666.9B | |
| Dividend Yield | 11.84% | 1.07% | |
| Holdings | 221 | 3,543 | |
| YTD Return | +2.69% | +14.82% | |
| 1Y Return | +7.32% | +22.43% | |
| 3Y Return (annualized) | +10.56% | +21.93% | |
| 5Y Return (annualized) | +5.74% | +12.34% | |
| Volatility (annualized) | 14.8% | 15.4% | |
| Max Drawdown | -72.7% | -56.6% | |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | May 25, 2004 | May 24, 2001 |
FCT vs VTI Performance
First Trust Senior Floating Rate Income Fund II (FCT) 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 FCT returned +7.32% while VTI returned +22.43%. Year to date, FCT is up 2.69% versus a gain of 14.82% for VTI.
Over three years, FCT compounded at +10.56% per year against +21.93% for VTI; over five years the annualized figures are +5.74% and +12.34% respectively. Across the full 22-year window we track, VTI has the edge at +8.16% annualized vs -0.76%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTI has been the more volatile fund, with annualized monthly volatility of 15.4% compared with 14.8% for FCT. 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 -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 0.58. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FCT charges 1.67% per year while VTI 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 1.07% for VTI.
Holdings Overlap
FCT and VTI share 0 holdings out of 2893 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 VTI?
FCT has an expense ratio of 1.67% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $164 per year of difference.
Which performed better, FCT or VTI?
Over the past year FCT returned +7.32% vs +22.43% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (22 years), FCT annualized -0.76% vs +8.16% for VTI. Past performance does not guarantee future results.
Which is riskier, FCT or VTI?
VTI has been the more volatile fund at 15.4% annualized versus 14.8% for FCT. Worst drawdown: FCT -72.7% vs VTI -56.6%.
Should I hold both FCT and VTI?
FCT and VTI have a monthly-return correlation of 0.58, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FCT and VTI?
FCT and VTI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2893 unique securities.
Which pays a higher dividend, FCT or VTI?
FCT yields 11.84% while VTI yields 1.07%, so FCT currently pays the higher dividend yield.
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