FDV vs VTI
Federated Hermes US Strategic Dividend ETF vs Vanguard Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. VTI delivered stronger 1-year returns. VTI offers more diversification with 2783 holdings.
Side-by-Side Comparison
| Metric | FDV | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.50% | 0.03% | |
| AUM | $850M | $663.5B | |
| Dividend Yield | 2.94% | 1.07% | |
| Holdings | 52 | 3,543 | |
| YTD Return | +17.91% | +14.16% | |
| 1Y Return | +22.66% | +23.62% | |
| 3Y Return (annualized) | +15.09% | +21.43% | |
| 5Y Return (annualized) | - | +12.33% | |
| Volatility (annualized) | 12.2% | 15.3% | |
| Max Drawdown | -16.7% | -56.6% | |
| Fund Family | Federated Hermes Funds | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Nov 15, 2022 | May 24, 2001 |
FDV vs VTI Performance
Federated Hermes US Strategic Dividend ETF (FDV) is a ETF from Federated Hermes Funds and Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year FDV returned +22.66% while VTI returned +23.62%. Year to date, FDV is up 17.91% versus a gain of 14.16% for VTI.
Over three years, FDV compounded at +15.09% per year against +21.43% for VTI. Across the full 4-year window we track, FDV has the edge at +11.42% annualized vs +8.14%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTI has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 12.2% for FDV. 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 -16.7% for FDV 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 0.55. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FDV charges 0.50% per year while VTI charges 0.03%. On a $10,000 position that is $50 vs $3 annually, a gap of $47 per year that compounds over a long holding period. On income, FDV currently yields 2.94% against 1.07% for VTI.
Holdings Overlap
FDV and VTI share 45 holdings out of 2788 unique holdings combined, representing a 8.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FDV or VTI?
FDV has an expense ratio of 0.50% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $47 per year of difference.
Which performed better, FDV or VTI?
Over the past year FDV returned +22.66% vs +23.62% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (4 years), FDV annualized +11.42% vs +8.14% for VTI. Past performance does not guarantee future results.
Which is riskier, FDV or VTI?
VTI has been the more volatile fund at 15.3% annualized versus 12.2% for FDV. Worst drawdown: FDV -16.7% vs VTI -56.6%.
Should I hold both FDV and VTI?
FDV and VTI have a monthly-return correlation of 0.55, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FDV and VTI?
FDV and VTI share 45 common holdings with a 8.1% weight overlap. Combined, they hold 2788 unique securities.
Which pays a higher dividend, FDV or VTI?
FDV yields 2.94% while VTI yields 1.07%, so FDV currently pays the higher dividend yield.
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