FDD vs IVV
First Trust STOXX European Select Dividend Index Fund vs iShares Core S&P 500 ETF
Quick Verdict
IVV has a lower expense ratio. FDD delivered stronger 1-year returns. IVV offers more diversification with 508 holdings.
Side-by-Side Comparison
| Metric | FDD | IVV | Winner |
|---|---|---|---|
| Expense Ratio | 0.56% | 0.03% | |
| AUM | $918M | $907.0B | |
| Dividend Yield | 5.03% | 1.10% | |
| Holdings | 34 | 508 | |
| YTD Return | +19.76% | +14.29% | |
| 1Y Return | +32.98% | +21.79% | |
| 3Y Return (annualized) | +29.83% | +22.19% | |
| 5Y Return (annualized) | +13.12% | +13.28% | |
| Volatility (annualized) | 18.1% | 15.1% | |
| Max Drawdown | -46.5% | -56.5% | |
| Fund Family | First Trust Portfolios (US) | iShares by BlackRock (US) | |
| Category | Equity | Equity | |
| Inception | Aug 27, 2007 | May 15, 2000 |
FDD vs IVV Performance
First Trust STOXX European Select Dividend Index Fund (FDD) 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 FDD returned +32.98% while IVV returned +21.79%. Year to date, FDD is up 19.76% versus a gain of 14.29% for IVV.
Over three years, FDD compounded at +29.83% per year against +22.19% for IVV; over five years the annualized figures are +13.12% and +13.28% respectively. Across the full 17-year window we track, IVV has the edge at +7.06% annualized vs +4.31%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FDD has been the more volatile fund, with annualized monthly volatility of 18.1% 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 -46.5% for FDD 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 0.71. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FDD charges 0.56% per year while IVV charges 0.03%. On a $10,000 position that is $56 vs $3 annually, a gap of $53 per year that compounds over a long holding period. On income, FDD currently yields 5.03% against 1.10% for IVV.
Holdings Overlap
FDD and IVV share 0 holdings out of 535 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, FDD or IVV?
FDD has an expense ratio of 0.56% while IVV charges 0.03%. IVV is the cheaper option. On a $10,000 investment, that is $53 per year of difference.
Which performed better, FDD or IVV?
Over the past year FDD returned +32.98% vs +21.79% for IVV, so FDD leads on 1-year performance. Over the longest common window we track (17 years), FDD annualized +4.31% vs +7.06% for IVV. Past performance does not guarantee future results.
Which is riskier, FDD or IVV?
FDD has been the more volatile fund at 18.1% annualized versus 15.1% for IVV. Worst drawdown: FDD -46.5% vs IVV -56.5%.
Should I hold both FDD and IVV?
FDD and IVV have a monthly-return correlation of 0.71, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FDD and IVV?
FDD and IVV share 0 common holdings with a 0.0% weight overlap. Combined, they hold 535 unique securities.
Which pays a higher dividend, FDD or IVV?
FDD yields 5.03% while IVV yields 1.10%, so FDD currently pays the higher dividend yield.
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