FCTR vs VTI

FCTR vs VTI

Which is better, FCTR or VTI?

VTI has been ahead.

VTI has a lower expense ratio. VTI led over 1Y, 3Y, 5Y and the full window. FCTR is less concentrated, with 15.7% of the fund in its ten largest positions against 33.3%.

Lower Fees: VTIHigher Returns: VTILess 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

MetricFCTRVTI
Expense Ratio0.65%0.03%Best
AUM$56M$666.9B
Dividend Yield0.47%1.03%
Holdings3313,543
YTD Return+5.22%+13.10%Best
1Y Return+8.86%+17.01%Best
3Y Return (annualized)+16.40%+22.26%Best
5Y Return (annualized)+2.10%+11.98%Best
Volatility (annualized)20.0%17.2%Best
Max Drawdown-37.1%-35.0%Best
$10,000 over 5 years$11,095$17,608Best
Top 10 Weight15.7%Best33.3%
Fund FamilyFirst Trust Portfolios (US)Vanguard (US)
CategoryEquityEquity
StyleLarge Cap BlendLarge Cap Blend
InceptionJul 23, 2018May 24, 2001

Volatility and max drawdown are measured over the window both funds cover: Jul 26, 2018 to Sep 24, 2026 (8.2 years).

FCTR vs VTI 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 8.2 years both funds cover.

FCTR vs VTI Performance

First Trust Lunt US Factor Rotation ETF (FCTR) is an ETF from First Trust Portfolios (US) and Vanguard Morningstar Total Stock Market ETF (VTI) is an ETF from Vanguard (US). Over the past year FCTR returned +8.86% while VTI returned +17.01%. Year to date, FCTR is up 5.22% versus a gain of 13.10% for VTI.

Over three years, FCTR compounded at +16.40% per year against +22.26% for VTI; over five years the annualized figures are +2.10% and +11.98% respectively. Across the full 8-year window we track, VTI has the edge at +13.38% annualized vs +8.87%.

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 17.2% for VTI. 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 -35.0% for VTI. Drawdown depth is what each fund did in the worst stretch of the window measured above.

The two funds' monthly returns correlate at 0.89. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

FCTR charges 0.65% per year while VTI 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 0.47% against 1.03% for VTI.

Holdings Overlap

FCTR already in VTI98.0%
VTI already in FCTR26.1%

98.0% of FCTR's money is in holdings VTI also owns. 26.1% of VTI's money is in holdings FCTR also owns.

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

163 positions in common, counted across the 166 positions we hold weights for in FCTR and 3,463 in VTI, against full books of 331 and 3,543.

What only one of them owns

Our book lists 989 positions for VTI that do not appear in our book for FCTR (71.4% of the fund), and 2 for FCTR that do not appear in VTI (0.9%).

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 VTIDifference
MSFTMicrosoft Corp0.30%4.79%4.49%
VVisa Inc Class A1.59%0.83%0.76%
HUMHumana Inc.2.16%0.06%2.10%
MAMastercard Inc1.47%0.63%0.84%
CNCCentene2.04%0.04%2.00%
JNJJohnson & Johnson - Common1.16%0.86%0.30%
JPMJpmorgan Chase0.47%1.31%0.84%
ALLAllstate Corp.1.61%0.09%1.52%
KOCoca Cola Co.1.23%0.42%0.81%
LLYEli Lilly & Co.0.28%1.35%1.07%

98.0% of FCTR is already inside VTI.

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

FCTRVTI

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, FCTR or VTI?

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

Which performed better, FCTR or VTI?

Over the past year FCTR returned +8.86% vs +17.01% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (8 years), FCTR annualized +8.87% vs +13.38% for VTI. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, FCTR or VTI?

FCTR has been the more volatile fund at 20.0% annualized versus 17.2% for VTI. Worst drawdown: FCTR -37.1% vs VTI -35.0%.

Should I hold both FCTR and VTI?

FCTR and VTI have a monthly-return correlation of 0.89, 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 VTI?

98.0% of FCTR's money is in holdings VTI also owns. 26.1% of VTI's is in holdings FCTR also owns. They hold 163 positions in common, counted across the 166 positions we hold weights for in FCTR and 3,463 in VTI.

Which pays a higher dividend, FCTR or VTI?

FCTR yields 0.47% while VTI yields 1.03%, so VTI currently pays the higher dividend yield.

Is VTI better than FCTR?

VTI has a lower expense ratio. VTI led over 1Y, 3Y, 5Y and the full window. FCTR is less concentrated, with 15.7% of the fund in its ten largest positions against 33.3%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.