FDRR vs VTI
Fidelity Dividend ETF for Rising Rates vs Vanguard Morningstar Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. FDRR delivered stronger 1-year returns. VTI offers more diversification with 3,543 holdings.
Side-by-Side Comparison
| Metric | FDRR | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.15% | 0.03% | |
| AUM | $737M | $666.9B | |
| Dividend Yield | 2.08% | 1.07% | |
| Holdings | 128 | 3,543 | |
| YTD Return | +15.74% | +14.82% | |
| 1Y Return | +26.23% | +22.43% | |
| 3Y Return (annualized) | +22.15% | +21.93% | |
| 5Y Return (annualized) | +12.99% | +12.34% | |
| Volatility (annualized) | 15.3% | 15.4% | |
| Max Drawdown | -37.6% | -56.6% | |
| Fund Family | Fidelity Investments (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Sep 12, 2016 | May 24, 2001 |
FDRR vs VTI Performance
Fidelity Dividend ETF for Rising Rates (FDRR) is a ETF from Fidelity Investments (US) and Vanguard Morningstar Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year FDRR returned +26.23% while VTI returned +22.43%. Year to date, FDRR is up 15.74% versus a gain of 14.82% for VTI.
Over three years, FDRR compounded at +22.15% per year against +21.93% for VTI; over five years the annualized figures are +12.99% and +12.34% respectively. Across the full 10-year window we track, FDRR has the edge at +12.48% annualized vs +8.16%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTI has been the more volatile fund, with annualized monthly volatility of 15.4% compared with 15.3% for FDRR. 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 -37.6% for FDRR 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 0.95. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
FDRR charges 0.15% per year while VTI charges 0.03%. On a $10,000 position that is $15 vs $3 annually, a gap of $12 per year that compounds over a long holding period. On income, FDRR currently yields 2.08% against 1.07% for VTI.
Holdings Overlap
FDRR and VTI share 95 holdings out of 2804 unique holdings combined, representing a 41.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FDRR or VTI?
FDRR has an expense ratio of 0.15% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $12 per year of difference.
Which performed better, FDRR or VTI?
Over the past year FDRR returned +26.23% vs +22.43% for VTI, so FDRR leads on 1-year performance. Over the longest common window we track (10 years), FDRR annualized +12.48% vs +8.16% for VTI. Past performance does not guarantee future results.
Which is riskier, FDRR or VTI?
VTI has been the more volatile fund at 15.4% annualized versus 15.3% for FDRR. Worst drawdown: FDRR -37.6% vs VTI -56.6%.
Should I hold both FDRR and VTI?
FDRR and VTI have a monthly-return correlation of 0.95, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between FDRR and VTI?
FDRR and VTI share 95 common holdings with a 41.4% weight overlap. Combined, they hold 2804 unique securities.
Which pays a higher dividend, FDRR or VTI?
FDRR yields 2.08% while VTI yields 1.07%, so FDRR currently pays the higher dividend yield.
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