FEDM vs VOO

FEDM vs VOO

Which is better, FEDM or VOO?

Each has led over a different period.

VOO has a lower expense ratio. FEDM led over 1Y, VOO over 3Y, 5Y and the full window. FEDM is less concentrated, with 17.0% of the fund in its ten largest positions against 36.4%.

Lower Fees: VOOHigher Returns: splitLess Concentrated: FEDM

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

MetricFEDMVOO
Expense Ratio0.12%0.03%Best
AUM$85M$997.4B
Dividend Yield2.87%1.08%
Holdings265509
YTD Return+13.52%Best+13.37%
1Y Return+22.45%Best+20.08%
3Y Return (annualized)+17.50%+21.29%Best
5Y Return (annualized)+8.79%+12.89%Best
Volatility (annualized)15.6%Best15.7%
Max Drawdown-29.4%-24.5%Best
$10,000 over 5 years$15,239$18,335Best
Top 10 Weight17.0%Best36.4%
Fund FamilyNorthern Trust Asset ManagementVanguard (US)
CategoryEquityEquity
StyleLarge Cap BlendLarge Cap Blend
InceptionSep 20, 2021Sep 7, 2010

Volatility and max drawdown are measured over the window both funds cover: Sep 21, 2021 to Sep 4, 2026 (5 years).

FEDM 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 5 years both funds cover.

FEDM vs VOO Performance

Northern Trust ESG & Climate Developed Markets ex-US Core ETF (FEDM) is an ETF from Northern Trust Asset Management and Vanguard S&P 500 ETF (VOO) is an ETF from Vanguard (US). Over the past year FEDM returned +22.45% while VOO returned +20.08%. Year to date, FEDM is up 13.52% versus a gain of 13.37% for VOO.

Over three years, FEDM compounded at +17.50% per year against +21.29% for VOO; over five years the annualized figures are +8.79% and +12.89% respectively.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VOO has been the more volatile fund, with annualized monthly volatility of 15.7% compared with 15.6% for FEDM. 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 -29.4% for FEDM and -24.5% 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 0.79. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

FEDM charges 0.12% per year while VOO charges 0.03%. On a $10,000 position that is $12 vs $3 annually, a gap of $9 per year that compounds over a long holding period. On income, FEDM currently yields 2.87% against 1.08% for VOO.

Holdings Overlap

FEDM already in VOO0.2%
VOO already in FEDM0.1%

0.2% of FEDM's money is in holdings VOO also owns. 0.1% of VOO's money is in holdings FEDM also owns.

We cannot see either book well enough to say how much of this pair is duplicated.

1 positions in common, counted across the 218 positions we hold weights for in FEDM and 505 in VOO, against full books of 265 and 509.

What only one of them owns

Our book lists 496 positions for VOO that do not appear in our book for FEDM (99.4% of the fund), and 3 for FEDM that do not appear in VOO (0.8%).

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.

Top Shared Holdings

StockWeight in FEDMWeight in VOODifference
ROPRoper Technologies Inc.0.21%0.05%0.16%

You are not choosing between two funds in isolation.

Whichever of FEDM and VOO you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.

FEDMVOO

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Frequently Asked Questions

Which is cheaper, FEDM or VOO?

FEDM has an expense ratio of 0.12% while VOO charges 0.03%. VOO is the cheaper option, by $9 a year on a $10,000 investment.

Which performed better, FEDM or VOO?

Over the past year FEDM returned +22.45% vs +20.08% for VOO, so FEDM leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, FEDM or VOO?

VOO has been the more volatile fund at 15.7% annualized versus 15.6% for FEDM. Worst drawdown: FEDM -29.4% vs VOO -24.5%.

Should I hold both FEDM and VOO?

FEDM and VOO have a monthly-return correlation of 0.79, 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, FEDM or VOO?

FEDM yields 2.87% while VOO yields 1.08%, so FEDM currently pays the higher dividend yield.

Is VOO better than FEDM?

VOO has a lower expense ratio. FEDM led over 1Y, VOO over 3Y, 5Y and the full window. FEDM is less concentrated, with 17.0% 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.