FCTR vs IVV
First Trust Lunt US Factor Rotation ETF vs iShares Core S&P 500 ETF
Quick Verdict
IVV has a lower expense ratio. IVV delivered stronger 1-year returns. IVV offers more diversification with 508 holdings.
Side-by-Side Comparison
| Metric | FCTR | IVV | Winner |
|---|---|---|---|
| Expense Ratio | 0.65% | 0.03% | |
| AUM | $57M | $907.0B | |
| Dividend Yield | 0.50% | 1.10% | |
| Holdings | 163 | 508 | |
| YTD Return | +10.26% | +13.74% | |
| 1Y Return | +17.16% | +21.54% | |
| 3Y Return (annualized) | +17.64% | +22.61% | |
| 5Y Return (annualized) | +3.13% | +13.31% | |
| Volatility (annualized) | 20.0% | 15.1% | |
| Max Drawdown | -37.1% | -56.5% | |
| Fund Family | First Trust Portfolios (US) | iShares by BlackRock (US) | |
| Category | Equity | Equity | |
| Inception | Jul 23, 2018 | May 15, 2000 |
FCTR vs IVV Performance
First Trust Lunt US Factor Rotation ETF (FCTR) is a ETF from First Trust Portfolios (US) and iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US). Over the past year FCTR returned +17.16% while IVV returned +21.54%. Year to date, FCTR is up 10.26% versus a gain of 13.74% for IVV.
Over three years, FCTR compounded at +17.64% per year against +22.61% for IVV; over five years the annualized figures are +3.13% and +13.31% respectively. Across the full 8-year window we track, FCTR has the edge at +9.63% annualized vs +7.04%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FCTR has been the more volatile fund, with annualized monthly volatility of 20.0% compared with 15.1% for IVV. 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 -37.1% for FCTR and -56.5% for IVV. 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 0.87. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FCTR charges 0.65% per year while IVV charges 0.03%. On a $10,000 position that is $65 vs $3 annually, a gap of $62 per year that compounds over a long holding period. On income, FCTR currently yields 0.50% against 1.10% for IVV.
Holdings Overlap
FCTR and IVV share 152 holdings out of 520 unique holdings combined, representing a 19.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FCTR or IVV?
FCTR has an expense ratio of 0.65% while IVV charges 0.03%. IVV is the cheaper option. On a $10,000 investment, that is $62 per year of difference.
Which performed better, FCTR or IVV?
Over the past year FCTR returned +17.16% vs +21.54% for IVV, so IVV leads on 1-year performance. Over the longest common window we track (8 years), FCTR annualized +9.63% vs +7.04% for IVV. Past performance does not guarantee future results.
Which is riskier, FCTR or IVV?
FCTR has been the more volatile fund at 20.0% annualized versus 15.1% for IVV. Worst drawdown: FCTR -37.1% vs IVV -56.5%.
Should I hold both FCTR and IVV?
FCTR and IVV have a monthly-return correlation of 0.87, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FCTR and IVV?
FCTR and IVV share 152 common holdings with a 19.3% weight overlap. Combined, they hold 520 unique securities.
Which pays a higher dividend, FCTR or IVV?
FCTR yields 0.50% while IVV yields 1.10%, so IVV currently pays the higher dividend yield.
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