FDM vs VTI
First Trust Dow Jones Select MicroCap Index Fund vs Vanguard Morningstar Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. FDM delivered stronger 1-year returns. VTI offers more diversification with 3,543 holdings.
Side-by-Side Comparison
| Metric | FDM | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.60% | 0.03% | |
| AUM | $277M | $666.9B | |
| Dividend Yield | 1.36% | 1.07% | |
| Holdings | 149 | 3,543 | |
| YTD Return | +19.25% | +13.67% | |
| 1Y Return | +31.09% | +22.17% | |
| 3Y Return (annualized) | +20.30% | +21.93% | |
| 5Y Return (annualized) | +11.77% | +12.51% | |
| Volatility (annualized) | 21.1% | 15.3% | |
| Max Drawdown | -64.0% | -56.6% | |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Sep 27, 2005 | May 24, 2001 |
FDM vs VTI Performance
First Trust Dow Jones Select MicroCap Index Fund (FDM) 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 FDM returned +31.09% while VTI returned +22.17%. Year to date, FDM is up 19.25% versus a gain of 13.67% for VTI.
Over three years, FDM compounded at +20.30% per year against +21.93% for VTI; over five years the annualized figures are +11.77% and +12.51% respectively. Across the full 21-year window we track, VTI has the edge at +8.11% annualized vs +8.06%. 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 15.3% 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 -64.0% for FDM 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 0.84. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FDM charges 0.60% per year while VTI 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 1.07% for VTI.
Holdings Overlap
FDM and VTI share 108 holdings out of 2825 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 VTI?
FDM has an expense ratio of 0.60% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $57 per year of difference.
Which performed better, FDM or VTI?
Over the past year FDM returned +31.09% vs +22.17% for VTI, so FDM leads on 1-year performance. Over the longest common window we track (21 years), FDM annualized +8.06% vs +8.11% for VTI. Past performance does not guarantee future results.
Which is riskier, FDM or VTI?
FDM has been the more volatile fund at 21.1% annualized versus 15.3% for VTI. Worst drawdown: FDM -64.0% vs VTI -56.6%.
Should I hold both FDM and VTI?
FDM and VTI have a monthly-return correlation of 0.84, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FDM and VTI?
FDM and VTI share 108 common holdings with a 0.0% weight overlap. Combined, they hold 2825 unique securities.
Which pays a higher dividend, FDM or VTI?
FDM yields 1.36% while VTI yields 1.07%, so FDM currently pays the higher dividend yield.
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