FDM vs IVV
First Trust Dow Jones Select MicroCap Index Fund vs iShares Core S&P 500 ETF
Quick Verdict
IVV has a lower expense ratio. FDM delivered stronger 1-year returns. IVV offers more diversification with 508 holdings.
Side-by-Side Comparison
| Metric | FDM | IVV | Winner |
|---|---|---|---|
| Expense Ratio | 0.60% | 0.03% | |
| AUM | $277M | $907.0B | |
| Dividend Yield | 1.36% | 1.10% | |
| Holdings | 149 | 508 | |
| YTD Return | +20.20% | +12.96% | |
| 1Y Return | +32.61% | +20.70% | |
| 3Y Return (annualized) | +20.64% | +22.10% | |
| 5Y Return (annualized) | +11.69% | +13.40% | |
| Volatility (annualized) | 21.1% | 15.1% | |
| Max Drawdown | -64.0% | -56.5% | |
| Fund Family | First Trust Portfolios (US) | iShares by BlackRock (US) | |
| Category | Equity | Equity | |
| Inception | Sep 27, 2005 | May 15, 2000 |
FDM vs IVV Performance
First Trust Dow Jones Select MicroCap Index Fund (FDM) is a ETF from First Trust Portfolios (US) and iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US). Over the past year FDM returned +32.61% while IVV returned +20.70%. Year to date, FDM is up 20.20% versus a gain of 12.96% for IVV.
Over three years, FDM compounded at +20.64% per year against +22.10% for IVV; over five years the annualized figures are +11.69% and +13.40% respectively. Across the full 21-year window we track, FDM has the edge at +8.11% annualized vs +7.01%. 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 worth weighing if you expect to sell during market stress rather than ride it out.
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 1.10% for IVV.
Holdings Overlap
FDM and IVV share 0 holdings out of 651 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, FDM or IVV?
FDM has an expense ratio of 0.60% while IVV charges 0.03%. IVV is the cheaper option. On a $10,000 investment, that is $57 per year of difference.
Which performed better, FDM or IVV?
Over the past year FDM returned +32.61% vs +20.70% for IVV, so FDM leads on 1-year performance. Over the longest common window we track (21 years), FDM annualized +8.11% vs +7.01% for IVV. Past performance does not guarantee future results.
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 combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FDM and IVV?
FDM and IVV share 0 common holdings with a 0.0% weight overlap. Combined, they hold 651 unique securities.
Which pays a higher dividend, FDM or IVV?
FDM yields 1.36% while IVV yields 1.10%, so FDM currently pays the higher dividend yield.
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