FDM vs VOO
First Trust Dow Jones Select MicroCap Index Fund vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. FDM delivered stronger 1-year returns. VOO offers more diversification with 509 holdings.
Side-by-Side Comparison
| Metric | FDM | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.60% | 0.03% | |
| AUM | $277M | $997.4B | |
| Dividend Yield | 1.36% | 1.08% | |
| Holdings | 149 | 509 | |
| YTD Return | +21.44% | +13.73% | |
| 1Y Return | +33.98% | +21.53% | |
| 3Y Return (annualized) | +20.71% | +22.60% | |
| 5Y Return (annualized) | +11.77% | +13.31% | |
| Volatility (annualized) | 21.1% | 14.1% | |
| Max Drawdown | -64.0% | -34.3% | |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Sep 27, 2005 | Sep 7, 2010 |
FDM vs VOO Performance
First Trust Dow Jones Select MicroCap Index Fund (FDM) 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 FDM returned +33.98% while VOO returned +21.53%. Year to date, FDM is up 21.44% versus a gain of 13.73% for VOO.
Over three years, FDM compounded at +20.71% per year against +22.60% for VOO; over five years the annualized figures are +11.77% and +13.31% respectively. Across the full 16-year window we track, VOO has the edge at +13.55% annualized vs +8.16%. 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 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 -64.0% for FDM 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 0.77. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FDM charges 0.60% per year while VOO 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 1.08% for VOO.
Holdings Overlap
FDM and VOO 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 VOO?
FDM has an expense ratio of 0.60% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $57 per year of difference.
Which performed better, FDM or VOO?
Over the past year FDM returned +33.98% vs +21.53% for VOO, so FDM leads on 1-year performance. Over the longest common window we track (16 years), FDM annualized +8.16% vs +13.55% for VOO. Past performance does not guarantee future results.
Which is riskier, FDM or VOO?
FDM has been the more volatile fund at 21.1% annualized versus 14.1% for VOO. Worst drawdown: FDM -64.0% vs VOO -34.3%.
Should I hold both FDM and VOO?
FDM and VOO have a monthly-return correlation of 0.77, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FDM and VOO?
FDM and VOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 651 unique securities.
Which pays a higher dividend, FDM or VOO?
FDM yields 1.36% while VOO yields 1.08%, so FDM currently pays the higher dividend yield.
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