FEDM vs VOO
FlexShares ESG & Climate Developed Markets ex-US Core Index Fund vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. FEDM delivered stronger 1-year returns. VOO offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | FEDM | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.12% | 0.03% | |
| AUM | $78M | $979.0B | |
| Dividend Yield | 2.98% | 1.09% | |
| Holdings | 261 | 509 | |
| YTD Return | +12.94% | +13.72% | |
| 1Y Return | +22.44% | +21.63% | |
| 3Y Return (annualized) | +16.71% | +21.55% | |
| 5Y Return (annualized) | +8.80% | +13.26% | |
| Volatility (annualized) | 15.7% | 14.1% | |
| Max Drawdown | -29.4% | -34.3% | |
| Fund Family | Flexshares Trust | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Sep 20, 2021 | Sep 7, 2010 |
FEDM vs VOO Performance
FlexShares ESG & Climate Developed Markets ex-US Core Index Fund (FEDM) is a ETF from Flexshares Trust and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year FEDM returned +22.44% while VOO returned +21.63%. Year to date, FEDM is up 12.94% versus a gain of 13.72% for VOO.
Over three years, FEDM compounded at +16.71% per year against +21.55% for VOO; over five years the annualized figures are +8.80% and +13.26% respectively. Across the full 5-year window we track, VOO has the edge at +13.56% annualized vs +8.80%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FEDM has been the more volatile fund, with annualized monthly volatility of 15.7% compared with 14.1% 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 -29.4% for FEDM 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 0.79. 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 2.98% against 1.09% for VOO.
Holdings Overlap
FEDM and VOO share 1 holdings out of 726 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in FEDM | Weight in VOO | Difference |
|---|---|---|---|
| ROP | 0.33% | 0.05% | 0.28% |
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. On a $10,000 investment, that is $9 per year of difference.
Which performed better, FEDM or VOO?
Over the past year FEDM returned +22.44% vs +21.63% for VOO, so FEDM leads on 1-year performance. Over the longest common window we track (5 years), FEDM annualized +8.80% vs +13.56% for VOO. Past performance does not guarantee future results.
Which is riskier, FEDM or VOO?
FEDM has been the more volatile fund at 15.7% annualized versus 14.1% for VOO. Worst drawdown: FEDM -29.4% vs VOO -34.3%.
Should I hold both FEDM and VOO?
FEDM and VOO have a monthly-return correlation of 0.79, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FEDM and VOO?
FEDM and VOO share 1 common holdings with a 0.1% weight overlap. Combined, they hold 726 unique securities.
Which pays a higher dividend, FEDM or VOO?
FEDM yields 2.98% while VOO yields 1.09%, so FEDM currently pays the higher dividend yield.
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