FDN vs VOO
First Trust Dow Jones Internet Index Fund vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. VOO delivered stronger 1-year returns. VOO offers more diversification with 509 holdings.
Side-by-Side Comparison
| Metric | FDN | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.49% | 0.03% | |
| AUM | $5.0B | $979.0B | |
| Dividend Yield | 0.00% | 1.09% | |
| Holdings | 42 | 509 | |
| YTD Return | +11.18% | +14.48% | |
| 1Y Return | +8.65% | +22.02% | |
| 3Y Return (annualized) | +21.22% | +21.80% | |
| 5Y Return (annualized) | +4.11% | +13.36% | |
| Volatility (annualized) | 21.6% | 14.2% | |
| Max Drawdown | -61.5% | -34.3% | |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jun 19, 2006 | Sep 7, 2010 |
FDN vs VOO Performance
First Trust Dow Jones Internet Index Fund (FDN) 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 FDN returned +8.65% while VOO returned +22.02%. Year to date, FDN is up 11.18% versus a gain of 14.48% for VOO.
Over three years, FDN compounded at +21.22% per year against +21.80% for VOO; over five years the annualized figures are +4.11% and +13.36% respectively. Across the full 16-year window we track, FDN has the edge at +14.18% annualized vs +13.61%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FDN has been the more volatile fund, with annualized monthly volatility of 21.6% compared with 14.2% 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 -61.5% for FDN 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 0.81. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FDN charges 0.49% per year while VOO charges 0.03%. On a $10,000 position that is $49 vs $3 annually, a gap of $46 per year that compounds over a long holding period. On income, FDN currently yields 0.00% against 1.09% for VOO.
Holdings Overlap
FDN and VOO share 24 holdings out of 522 unique holdings combined, representing a 14.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FDN or VOO?
FDN has an expense ratio of 0.49% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $46 per year of difference.
Which performed better, FDN or VOO?
Over the past year FDN returned +8.65% vs +22.02% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (16 years), FDN annualized +14.18% vs +13.61% for VOO. Past performance does not guarantee future results.
Which is riskier, FDN or VOO?
FDN has been the more volatile fund at 21.6% annualized versus 14.2% for VOO. Worst drawdown: FDN -61.5% vs VOO -34.3%.
Should I hold both FDN and VOO?
FDN and VOO 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 FDN and VOO?
FDN and VOO share 24 common holdings with a 14.5% weight overlap. Combined, they hold 522 unique securities.
Which pays a higher dividend, FDN or VOO?
FDN yields 0.00% while VOO yields 1.09%, so VOO currently pays the higher dividend yield.
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