FDL vs VTI
First Trust Morningstar Dividend Leaders Index Fund vs Vanguard Morningstar Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. FDL delivered stronger 1-year returns. VTI offers more diversification with 3,543 holdings.
Side-by-Side Comparison
| Metric | FDL | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.43% | 0.03% | |
| AUM | $8.0B | $666.9B | |
| Dividend Yield | 3.59% | 1.07% | |
| Holdings | 101 | 3,543 | |
| YTD Return | +20.26% | +14.82% | |
| 1Y Return | +26.63% | +22.43% | |
| 3Y Return (annualized) | +20.32% | +21.93% | |
| 5Y Return (annualized) | +13.63% | +12.34% | |
| Volatility (annualized) | 16.1% | 15.4% | |
| Max Drawdown | -68.6% | -56.6% | |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Mar 9, 2006 | May 24, 2001 |
FDL vs VTI Performance
First Trust Morningstar Dividend Leaders Index Fund (FDL) 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 FDL returned +26.63% while VTI returned +22.43%. Year to date, FDL is up 20.26% versus a gain of 14.82% for VTI.
Over three years, FDL compounded at +20.32% per year against +21.93% for VTI; over five years the annualized figures are +13.63% and +12.34% respectively. Across the full 20-year window we track, VTI has the edge at +8.16% annualized vs +5.93%. 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 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 -68.6% for FDL 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 0.74. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FDL charges 0.43% per year while VTI 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 1.07% for VTI.
Holdings Overlap
FDL and VTI share 81 holdings out of 2806 unique holdings combined, representing a 4.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FDL or VTI?
FDL has an expense ratio of 0.43% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $40 per year of difference.
Which performed better, FDL or VTI?
Over the past year FDL returned +26.63% vs +22.43% for VTI, so FDL leads on 1-year performance. Over the longest common window we track (20 years), FDL annualized +5.93% vs +8.16% for VTI. Past performance does not guarantee future results.
Which is riskier, FDL or VTI?
FDL has been the more volatile fund at 16.1% annualized versus 15.4% for VTI. Worst drawdown: FDL -68.6% vs VTI -56.6%.
Should I hold both FDL and VTI?
FDL and VTI have a monthly-return correlation of 0.74, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FDL and VTI?
FDL and VTI share 81 common holdings with a 4.4% weight overlap. Combined, they hold 2806 unique securities.
Which pays a higher dividend, FDL or VTI?
FDL yields 3.59% while VTI yields 1.07%, so FDL currently pays the higher dividend yield.
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