FEDM vs VTI
FlexShares ESG & Climate Developed Markets ex-US Core Index Fund 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 | FEDM | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.12% | 0.03% | |
| AUM | $78M | $663.5B | |
| Dividend Yield | 2.98% | 1.07% | |
| Holdings | 261 | 3,543 | |
| YTD Return | +13.30% | +14.96% | |
| 1Y Return | +22.27% | +22.39% | |
| 3Y Return (annualized) | +16.81% | +21.51% | |
| 5Y Return (annualized) | +8.86% | +12.36% | |
| Volatility (annualized) | 15.7% | 15.4% | |
| Max Drawdown | -29.4% | -56.6% | |
| Fund Family | Flexshares Trust | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Sep 20, 2021 | May 24, 2001 |
FEDM vs VTI Performance
FlexShares ESG & Climate Developed Markets ex-US Core Index Fund (FEDM) is a ETF from Flexshares Trust and Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year FEDM returned +22.27% while VTI returned +22.39%. Year to date, FEDM is up 13.30% versus a gain of 14.96% for VTI.
Over three years, FEDM compounded at +16.81% per year against +21.51% for VTI; over five years the annualized figures are +8.86% and +12.36% respectively. Across the full 5-year window we track, FEDM has the edge at +8.86% annualized vs +8.16%. 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 15.4% for VTI. 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 -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 0.79. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FEDM charges 0.12% per year while VTI 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 1.07% for VTI.
Holdings Overlap
FEDM and VTI share 1 holdings out of 3004 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 VTI | Difference |
|---|---|---|---|
| ROP | 0.33% | 0.05% | 0.28% |
Frequently Asked Questions
Which is cheaper, FEDM or VTI?
FEDM has an expense ratio of 0.12% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $9 per year of difference.
Which performed better, FEDM or VTI?
Over the past year FEDM returned +22.27% vs +22.39% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (5 years), FEDM annualized +8.86% vs +8.16% for VTI. Past performance does not guarantee future results.
Which is riskier, FEDM or VTI?
FEDM has been the more volatile fund at 15.7% annualized versus 15.4% for VTI. Worst drawdown: FEDM -29.4% vs VTI -56.6%.
Should I hold both FEDM and VTI?
FEDM and VTI 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 VTI?
FEDM and VTI share 1 common holdings with a 0.1% weight overlap. Combined, they hold 3004 unique securities.
Which pays a higher dividend, FEDM or VTI?
FEDM yields 2.98% while VTI yields 1.07%, so FEDM currently pays the higher dividend yield.
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