FCTR vs VOO

FCTR vs VOO

Which is better, FCTR or VOO?

VOO has been ahead.

VOO has a lower expense ratio. VOO led over 1Y, 3Y, 5Y and the full window. FCTR is less concentrated, with 15.9% of the fund in its ten largest positions against 36.4%.

Lower Fees: VOOHigher Returns: VOOLess Concentrated: FCTR

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

MetricFCTRVOO
Expense Ratio0.65%0.03%Best
AUM$57M$997.4B
Dividend Yield0.50%1.08%
Holdings331509
YTD Return+11.17%+13.37%Best
1Y Return+18.23%+20.08%Best
3Y Return (annualized)+16.31%+21.29%Best
5Y Return (annualized)+2.91%+12.89%Best
Volatility (annualized)19.9%16.7%Best
Max Drawdown-37.1%-34.3%Best
$10,000 over 5 years$11,542$18,335Best
Top 10 Weight15.9%Best36.4%
Fund FamilyFirst Trust Portfolios (US)Vanguard (US)
CategoryEquityEquity
StyleLarge Cap BlendLarge Cap Blend
InceptionJul 23, 2018Sep 7, 2010

Volatility and max drawdown are measured over the window both funds cover: Jul 26, 2018 to Sep 4, 2026 (8.1 years).

FCTR vs VOO 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 8.1 years both funds cover.

FCTR vs VOO Performance

First Trust Lunt US Factor Rotation ETF (FCTR) is an ETF from First Trust Portfolios (US) and Vanguard S&P 500 ETF (VOO) is an ETF from Vanguard (US). Over the past year FCTR returned +18.23% while VOO returned +20.08%. Year to date, FCTR is up 11.17% versus a gain of 13.37% for VOO.

Over three years, FCTR compounded at +16.31% per year against +21.29% for VOO; over five years the annualized figures are +2.91% and +12.89% respectively. Across the full 8-year window we track, VOO has the edge at +14.22% annualized vs +9.68%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

FCTR has been the more volatile fund, with annualized monthly volatility of 19.9% compared with 16.7% 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 -37.1% for FCTR and -34.3% for VOO. Drawdown depth is what each fund did in the worst stretch of the window measured above.

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 VOO 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 1.08% for VOO.

Holdings Overlap

FCTR already in VOO91.7%
VOO already in FCTR26.6%

91.7% of FCTR's money is in holdings VOO also owns. 26.6% of VOO's money is in holdings FCTR also owns.

Most of FCTR is already inside VOO. Owning both mostly buys the same companies twice.

152 positions in common, counted across the 167 positions we hold weights for in FCTR and 505 in VOO, against full books of 331 and 509.

What only one of them owns

Our book lists 346 positions for VOO that do not appear in our book for FCTR (72.9% of the fund), and 13 for FCTR that do not appear in VOO (7.4%).

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

StockWeight in FCTRWeight in VOODifference
MSFTMicrosoft Corp 4.100 Feb 06 370.29%4.30%4.01%
VVisa Inc Class A1.59%0.87%0.72%
CNCCentene2.19%0.05%2.14%
HUMHumana Inc.2.11%0.07%2.04%
MAMastercard Inc1.47%0.64%0.83%
JNJJohnson & Johnson - Common1.16%0.95%0.21%
ALLAllstate Corp.1.70%0.09%1.61%
LLYEli Lilly & Co.0.29%1.47%1.18%
JPMJpmorgan Chase0.48%1.26%0.78%
KOCoca Cola Co.1.24%0.49%0.75%

91.7% of FCTR is already inside VOO.

You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.

FCTRVOO

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, FCTR or VOO?

FCTR has an expense ratio of 0.65% while VOO charges 0.03%. VOO is the cheaper option, by $62 a year on a $10,000 investment.

Which performed better, FCTR or VOO?

Over the past year FCTR returned +18.23% vs +20.08% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (8 years), FCTR annualized +9.68% vs +14.22% for VOO. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, FCTR or VOO?

FCTR has been the more volatile fund at 19.9% annualized versus 16.7% for VOO. Worst drawdown: FCTR -37.1% vs VOO -34.3%.

Should I hold both FCTR and VOO?

FCTR and VOO have a monthly-return correlation of 0.87, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.

What is the holdings overlap between FCTR and VOO?

91.7% of FCTR's money is in holdings VOO also owns. 26.6% of VOO's is in holdings FCTR also owns. They hold 152 positions in common, counted across the 167 positions we hold weights for in FCTR and 505 in VOO.

Which pays a higher dividend, FCTR or VOO?

FCTR yields 0.50% while VOO yields 1.08%, so VOO currently pays the higher dividend yield.

Is VOO better than FCTR?

VOO has a lower expense ratio. VOO led over 1Y, 3Y, 5Y and the full window. FCTR is less concentrated, with 15.9% of the fund in its ten largest positions against 36.4%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.