FDM vs VOO
First Trust Dow Jones Select MicroCap Index Fund vs Vanguard S&P 500 ETF
Which is better, FDM or VOO?
Small Cap Value against Large Cap Blend.
VOO has a lower expense ratio. FDM led over 1Y, VOO over 3Y, 5Y and the full window. FDM is less concentrated, with 15.6% of the fund in its ten largest positions against 36.4%.
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 | VOO |
|---|---|---|
| Expense Ratio | 0.60% | 0.03%Best |
| AUM | $268M | $997.4B |
| Dividend Yield | 1.36% | 1.08% |
| Holdings | 294 | 509 |
| YTD Return | +19.51%Best | +13.37% |
| 1Y Return | +25.21%Best | +20.08% |
| 3Y Return (annualized) | +20.08% | +21.29%Best |
| 5Y Return (annualized) | +11.06% | +12.89%Best |
| Volatility (annualized) | 20.4% | 14.1%Best |
| Max Drawdown | -48.9% | -34.3%Best |
| $10,000 over 5 years | $16,896 | $18,335Best |
| Top 10 Weight | 15.6%Best | 36.4% |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Small Cap Value | Large Cap Blend |
| Inception | Sep 27, 2005 | Sep 7, 2010 |
Volatility and max drawdown are measured over the window both funds cover: Sep 9, 2010 to Sep 4, 2026 (16 years).
FDM vs VOO 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 16 years both funds cover.
FDM vs VOO Performance
First Trust Dow Jones Select MicroCap Index Fund (FDM) is an ETF from First Trust Portfolios (US) and Vanguard S&P 500 ETF (VOO) is an ETF from Vanguard (US). Over the past year FDM returned +25.21% while VOO returned +20.08%. Year to date, FDM is up 19.51% versus a gain of 13.37% for VOO.
Over three years, FDM compounded at +20.08% per year against +21.29% for VOO; over five years the annualized figures are +11.06% and +12.89% respectively. Across the full 16-year window we track, VOO has the edge at +13.48% annualized vs +11.80%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FDM has been the more volatile fund, with annualized monthly volatility of 20.4% 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 -48.9% for FDM and -34.3% for VOO. Drawdown depth is what each fund did in the worst stretch of the window measured above.
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
We hold position weights for 146 holdings in FDM and 504 in VOO, totalling 99.9% and 99.9% 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 146 positions we hold weights for in FDM and 504 in VOO, against full books of 294 and 509.
What only one of them owns
Our book lists 494 positions for VOO that do not appear in our book for FDM (99.3% of the fund), and 141 for FDM that do not appear in VOO (96.1%).
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 VOO 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 VOO?
FDM has an expense ratio of 0.60% while VOO charges 0.03%. VOO is the cheaper option, by $57 a year on a $10,000 investment.
Which performed better, FDM or VOO?
Over the past year FDM returned +25.21% vs +20.08% for VOO, so FDM leads on 1-year performance. Over the longest common window we track (16 years), FDM annualized +11.80% vs +13.48% for VOO. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FDM or VOO?
FDM has been the more volatile fund at 20.4% annualized versus 14.1% for VOO. Worst drawdown: FDM -48.9% vs VOO -34.3%.
Should I hold both FDM and VOO?
FDM and VOO have a monthly-return correlation of 0.77, 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 VOO?
FDM yields 1.36% while VOO yields 1.08%, so FDM currently pays the higher dividend yield.
Is VOO better than FDM?
VOO has a lower expense ratio. FDM led over 1Y, VOO over 3Y, 5Y and the full window. FDM is less concentrated, with 15.6% of the fund in its ten largest positions against 36.4%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.