FDEM vs VTI

FDEM vs VTI

Which is better, FDEM or VTI?

Each has led over a different period.

VTI has a lower expense ratio. FDEM led over 1Y, VTI over 3Y, 5Y and the full window.

Lower Fees: VTIHigher Returns: split

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

MetricFDEMVTI
Expense Ratio0.25%0.03%Best
AUM$581M$666.9B
Dividend Yield2.94%1.03%
Holdings2393,543
YTD Return+15.78%Best+12.57%
1Y Return+22.05%Best+17.22%
3Y Return (annualized)+20.69%+20.87%Best
5Y Return (annualized)+9.76%+11.86%Best
Volatility (annualized)15.6%Best16.9%
Max Drawdown-33.6%Best-35.0%
$10,000 over 5 years$15,930$17,514Best
Fund FamilyFidelity Investments (US)Vanguard (US)
CategoryEquityEquity
StyleLarge Cap BlendLarge Cap Blend
InceptionFeb 26, 2019May 24, 2001

Not shown on this pair: Top 10 Weight.

Volatility and max drawdown are measured over the window both funds cover: Feb 28, 2019 to Sep 11, 2026 (7.5 years).

FDEM 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 7.5 years both funds cover.

FDEM vs VTI Performance

Fidelity Emerging Markets Multifactor ETF (FDEM) is an ETF from Fidelity Investments (US) and Vanguard Morningstar Total Stock Market ETF (VTI) is an ETF from Vanguard (US). Over the past year FDEM returned +22.05% while VTI returned +17.22%. Year to date, FDEM is up 15.78% versus a gain of 12.57% for VTI.

Over three years, FDEM compounded at +20.69% per year against +20.87% for VTI; over five years the annualized figures are +9.76% and +11.86% respectively. Across the full 8-year window we track, VTI has the edge at +14.81% annualized vs +8.42%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VTI has been the more volatile fund, with annualized monthly volatility of 16.9% compared with 15.6% for FDEM. 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 -33.6% for FDEM 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 0.73. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

FDEM charges 0.25% per year while VTI charges 0.03%. On a $10,000 position that is $25 vs $3 annually, a gap of $22 per year that compounds over a long holding period. On income, FDEM currently yields 2.94% against 1.03% for VTI.

Holdings Overlap

FDEM already in VTI0.1%

At least 0.1% of FDEM's money is in holdings VTI also owns.

Stated as a floor: for VTI, our book for it covers 90.6% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.

We cannot see either book well enough to say how much of this pair is duplicated.

1 positions in common, counted across the 199 positions we hold weights for in FDEM and 2,787 in VTI, against full books of 239 and 3,543.

Top Shared Holdings

StockWeight in FDEMWeight in VTIDifference
HAL:MBHindustan Aeronautics Ltd0.15%0.04%0.11%

You are not choosing between two funds in isolation.

Whichever of FDEM and VTI you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.

FDEMVTI

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, FDEM or VTI?

FDEM has an expense ratio of 0.25% while VTI charges 0.03%. VTI is the cheaper option, by $22 a year on a $10,000 investment.

Which performed better, FDEM or VTI?

Over the past year FDEM returned +22.05% vs +17.22% for VTI, so FDEM leads on 1-year performance. Over the longest common window we track (8 years), FDEM annualized +8.42% vs +14.81% for VTI. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, FDEM or VTI?

VTI has been the more volatile fund at 16.9% annualized versus 15.6% for FDEM. Worst drawdown: FDEM -33.6% vs VTI -35.0%.

Should I hold both FDEM and VTI?

FDEM and VTI have a monthly-return correlation of 0.73, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.

Which pays a higher dividend, FDEM or VTI?

FDEM yields 2.94% while VTI yields 1.03%, so FDEM currently pays the higher dividend yield.

Is VTI better than FDEM?

VTI has a lower expense ratio. FDEM led over 1Y, VTI over 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.