FDD vs VTI
First Trust STOXX European Select Dividend Index Fund vs Vanguard Morningstar Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. FDD delivered stronger 1-year returns. VTI offers more diversification with 3,543 holdings.
Side-by-Side Comparison
| Metric | FDD | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.56% | 0.03% | |
| AUM | $918M | $666.9B | |
| Dividend Yield | 5.03% | 1.07% | |
| Holdings | 34 | 3,543 | |
| YTD Return | +19.76% | +14.82% | |
| 1Y Return | +32.98% | +22.43% | |
| 3Y Return (annualized) | +29.83% | +21.93% | |
| 5Y Return (annualized) | +13.12% | +12.34% | |
| Volatility (annualized) | 18.1% | 15.4% | |
| Max Drawdown | -46.5% | -56.6% | |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Aug 27, 2007 | May 24, 2001 |
FDD vs VTI Performance
First Trust STOXX European Select Dividend Index Fund (FDD) 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 FDD returned +32.98% while VTI returned +22.43%. Year to date, FDD is up 19.76% versus a gain of 14.82% for VTI.
Over three years, FDD compounded at +29.83% per year against +21.93% for VTI; over five years the annualized figures are +13.12% and +12.34% respectively. Across the full 17-year window we track, VTI has the edge at +8.16% 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 15.4% 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 -46.5% for FDD 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 0.71. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FDD charges 0.56% per year while VTI 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 1.07% for VTI.
Holdings Overlap
FDD and VTI share 0 holdings out of 2817 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 VTI?
FDD has an expense ratio of 0.56% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $53 per year of difference.
Which performed better, FDD or VTI?
Over the past year FDD returned +32.98% vs +22.43% for VTI, so FDD leads on 1-year performance. Over the longest common window we track (17 years), FDD annualized +4.31% vs +8.16% for VTI. Past performance does not guarantee future results.
Which is riskier, FDD or VTI?
FDD has been the more volatile fund at 18.1% annualized versus 15.4% for VTI. Worst drawdown: FDD -46.5% vs VTI -56.6%.
Should I hold both FDD and VTI?
FDD and VTI 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 VTI?
FDD and VTI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2817 unique securities.
Which pays a higher dividend, FDD or VTI?
FDD yields 5.03% while VTI yields 1.07%, so FDD currently pays the higher dividend yield.
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