FDL vs VOO
First Trust Morningstar Dividend Leaders Index Fund vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. FDL delivered stronger 1-year returns. VOO offers more diversification with 509 holdings.
Side-by-Side Comparison
| Metric | FDL | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.43% | 0.03% | |
| AUM | $8.0B | $997.4B | |
| Dividend Yield | 3.59% | 1.08% | |
| Holdings | 101 | 509 | |
| YTD Return | +20.04% | +12.95% | |
| 1Y Return | +26.36% | +20.69% | |
| 3Y Return (annualized) | +20.32% | +22.09% | |
| 5Y Return (annualized) | +13.89% | +13.40% | |
| Volatility (annualized) | 16.1% | 14.1% | |
| Max Drawdown | -68.6% | -34.3% | |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Mar 9, 2006 | Sep 7, 2010 |
FDL vs VOO Performance
First Trust Morningstar Dividend Leaders Index Fund (FDL) is a ETF from First Trust Portfolios (US) and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year FDL returned +26.36% while VOO returned +20.69%. Year to date, FDL is up 20.04% versus a gain of 12.95% for VOO.
Over three years, FDL compounded at +20.32% per year against +22.09% for VOO; over five years the annualized figures are +13.89% and +13.40% respectively. Across the full 16-year window we track, VOO has the edge at +13.50% annualized vs +5.91%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FDL has been the more volatile fund, with annualized monthly volatility of 16.1% compared with 14.1% 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 -68.6% for FDL and -34.3% for VOO. 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 0.72. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FDL charges 0.43% per year while VOO charges 0.03%. On a $10,000 position that is $43 vs $3 annually, a gap of $40 per year that compounds over a long holding period. On income, FDL currently yields 3.59% against 1.08% for VOO.
Holdings Overlap
FDL and VOO share 60 holdings out of 545 unique holdings combined, representing a 5.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FDL or VOO?
FDL has an expense ratio of 0.43% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $40 per year of difference.
Which performed better, FDL or VOO?
Over the past year FDL returned +26.36% vs +20.69% for VOO, so FDL leads on 1-year performance. Over the longest common window we track (16 years), FDL annualized +5.91% vs +13.50% for VOO. Past performance does not guarantee future results.
Which is riskier, FDL or VOO?
FDL has been the more volatile fund at 16.1% annualized versus 14.1% for VOO. Worst drawdown: FDL -68.6% vs VOO -34.3%.
Should I hold both FDL and VOO?
FDL and VOO have a monthly-return correlation of 0.72, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FDL and VOO?
FDL and VOO share 60 common holdings with a 5.2% weight overlap. Combined, they hold 545 unique securities.
Which pays a higher dividend, FDL or VOO?
FDL yields 3.59% while VOO yields 1.08%, so FDL currently pays the higher dividend yield.
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