FEM vs VOO
First Trust Emerging Markets AlphaDEX Fund vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. FEM delivered stronger 1-year returns. VOO offers more diversification with 509 holdings.
Side-by-Side Comparison
| Metric | FEM | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.80% | 0.03% | |
| AUM | $788M | $997.4B | |
| Dividend Yield | 2.33% | 1.08% | |
| Holdings | 173 | 509 | |
| YTD Return | +17.84% | +12.25% | |
| 1Y Return | +27.65% | +20.92% | |
| 3Y Return (annualized) | +19.11% | +21.79% | |
| 5Y Return (annualized) | +9.14% | +13.05% | |
| Volatility (annualized) | 19.7% | 14.1% | |
| Max Drawdown | -49.8% | -34.3% | |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Apr 18, 2011 | Sep 7, 2010 |
FEM vs VOO Performance
First Trust Emerging Markets AlphaDEX Fund (FEM) is a ETF from First Trust Portfolios (US) and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year FEM returned +27.65% while VOO returned +20.92%. Year to date, FEM is up 17.84% versus a gain of 12.25% for VOO.
Over three years, FEM compounded at +19.11% per year against +21.79% for VOO; over five years the annualized figures are +9.14% and +13.05% respectively. Across the full 15-year window we track, VOO has the edge at +13.45% annualized vs +2.20%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FEM has been the more volatile fund, with annualized monthly volatility of 19.7% 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 -49.8% for FEM 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 0.68. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FEM charges 0.80% per year while VOO charges 0.03%. On a $10,000 position that is $80 vs $3 annually, a gap of $77 per year that compounds over a long holding period. On income, FEM currently yields 2.33% against 1.08% for VOO.
Holdings Overlap
FEM and VOO share 0 holdings out of 659 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FEM or VOO?
FEM has an expense ratio of 0.80% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $77 per year of difference.
Which performed better, FEM or VOO?
Over the past year FEM returned +27.65% vs +20.92% for VOO, so FEM leads on 1-year performance. Over the longest common window we track (15 years), FEM annualized +2.20% vs +13.45% for VOO. Past performance does not guarantee future results.
Which is riskier, FEM or VOO?
FEM has been the more volatile fund at 19.7% annualized versus 14.1% for VOO. Worst drawdown: FEM -49.8% vs VOO -34.3%.
Should I hold both FEM and VOO?
FEM and VOO have a monthly-return correlation of 0.68, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FEM and VOO?
FEM and VOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 659 unique securities.
Which pays a higher dividend, FEM or VOO?
FEM yields 2.33% while VOO yields 1.08%, so FEM currently pays the higher dividend yield.
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