FDM vs IVV
First Trust Dow Jones Select MicroCap Index Fund vs iShares Core S&P 500 ETF
Which is better, FDM or IVV?
Small Cap Value against Large Cap Blend.
IVV has a lower expense ratio. FDM led over 1Y, IVV over 3Y, 5Y and the full window. FDM is less concentrated, with 14.7% of the fund in its ten largest positions against 37.9%.
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
| Metric | FDM | IVV |
|---|---|---|
| Expense Ratio | 0.60% | 0.03%Best |
| AUM | $265M | $876.4B |
| Dividend Yield | 1.36% | 1.06% |
| Holdings | 294 | 508 |
| YTD Return | +16.97%Best | +12.24% |
| 1Y Return | +23.64%Best | +18.61% |
| 3Y Return (annualized) | +19.89% | +20.98%Best |
| 5Y Return (annualized) | +10.78% | +12.76%Best |
| Volatility (annualized) | 21.1% | 15.1%Best |
| Max Drawdown | -64.0% | -56.5%Best |
| $10,000 over 5 years | $16,684 | $18,230Best |
| Top 10 Weight | 14.7%Best | 37.9% |
| Fund Family | First Trust Portfolios (US) | iShares by BlackRock (US) |
| Category | Equity | Equity |
| Style | Small Cap Value | Large Cap Blend |
| Inception | Sep 27, 2005 | May 15, 2000 |
Volatility and max drawdown are measured over the window both funds cover: Sep 30, 2005 to Sep 9, 2026 (20.9 years).
FDM vs IVV 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 20.9 years both funds cover.
FDM vs IVV Performance
First Trust Dow Jones Select MicroCap Index Fund (FDM) is an ETF from First Trust Portfolios (US) and iShares Core S&P 500 ETF (IVV) is an ETF from iShares by BlackRock (US). Over the past year FDM returned +23.64% while IVV returned +18.61%. Year to date, FDM is up 16.97% versus a gain of 12.24% for IVV.
Over three years, FDM compounded at +19.89% per year against +20.98% for IVV; over five years the annualized figures are +10.78% and +12.76% respectively. Across the full 21-year window we track, IVV has the edge at +9.53% annualized vs +7.94%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FDM has been the more volatile fund, with annualized monthly volatility of 21.1% 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 -64.0% for FDM and -56.5% for IVV. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.81. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FDM charges 0.60% per year while IVV charges 0.03%. On a $10,000 position that is $60 vs $3 annually, a gap of $57 per year that compounds over a long holding period. On income, FDM currently yields 1.36% against 1.06% for IVV.
Holdings Overlap
We hold position weights for 135 holdings in FDM and 505 in IVV, totalling 99.8% and 100.0% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 135 positions we hold weights for in FDM and 505 in IVV, against full books of 294 and 508.
What only one of them owns
Our book lists 496 positions for IVV that do not appear in our book for FDM (99.3% of the fund), and 135 for FDM that do not appear in IVV (99.8%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
You are not choosing between two funds in isolation.
Whichever of FDM and IVV you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, FDM or IVV?
FDM has an expense ratio of 0.60% while IVV charges 0.03%. IVV is the cheaper option, by $57 a year on a $10,000 investment.
Which performed better, FDM or IVV?
Over the past year FDM returned +23.64% vs +18.61% for IVV, so FDM leads on 1-year performance. Over the longest common window we track (21 years), FDM annualized +7.94% vs +9.53% for IVV. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FDM or IVV?
FDM has been the more volatile fund at 21.1% annualized versus 15.1% for IVV. Worst drawdown: FDM -64.0% vs IVV -56.5%.
Should I hold both FDM and IVV?
FDM and IVV have a monthly-return correlation of 0.81, 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, FDM or IVV?
FDM yields 1.36% while IVV yields 1.06%, so FDM currently pays the higher dividend yield.
Is IVV better than FDM?
IVV has a lower expense ratio. FDM led over 1Y, IVV over 3Y, 5Y and the full window. FDM is less concentrated, with 14.7% of the fund in its ten largest positions against 37.9%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.