FEMB vs VOO
First Trust Emerging Markets Local Currency Bond ETF vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. VOO delivered stronger 1-year returns. VOO offers more diversification with 509 holdings.
Side-by-Side Comparison
| Metric | FEMB | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.85% | 0.03% | |
| AUM | $380M | $997.4B | |
| Dividend Yield | 6.19% | 1.08% | |
| Holdings | 68 | 509 | |
| YTD Return | +2.96% | +14.27% | |
| 1Y Return | +7.98% | +21.79% | |
| 3Y Return (annualized) | +7.72% | +22.19% | |
| 5Y Return (annualized) | +3.10% | +13.28% | |
| Volatility (annualized) | 11.4% | 14.2% | |
| Max Drawdown | -47.5% | -34.3% | |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Nov 4, 2014 | Sep 7, 2010 |
FEMB vs VOO Performance
First Trust Emerging Markets Local Currency Bond ETF (FEMB) 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 FEMB returned +7.98% while VOO returned +21.79%. Year to date, FEMB is up 2.96% versus a gain of 14.27% for VOO.
Over three years, FEMB compounded at +7.72% per year against +22.19% for VOO; over five years the annualized figures are +3.10% and +13.28% respectively. Across the full 12-year window we track, VOO has the edge at +13.59% annualized vs -1.78%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VOO has been the more volatile fund, with annualized monthly volatility of 14.2% compared with 11.4% for FEMB. 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 -47.5% for FEMB 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 0.56. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FEMB charges 0.85% per year while VOO charges 0.03%. On a $10,000 position that is $85 vs $3 annually, a gap of $82 per year that compounds over a long holding period. On income, FEMB currently yields 6.19% against 1.08% for VOO.
Holdings Overlap
FEMB and VOO share 0 holdings out of 506 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, FEMB or VOO?
FEMB has an expense ratio of 0.85% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $82 per year of difference.
Which performed better, FEMB or VOO?
Over the past year FEMB returned +7.98% vs +21.79% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (12 years), FEMB annualized -1.78% vs +13.59% for VOO. Past performance does not guarantee future results.
Which is riskier, FEMB or VOO?
VOO has been the more volatile fund at 14.2% annualized versus 11.4% for FEMB. Worst drawdown: FEMB -47.5% vs VOO -34.3%.
Should I hold both FEMB and VOO?
FEMB and VOO have a monthly-return correlation of 0.56, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FEMB and VOO?
FEMB and VOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 506 unique securities.
Which pays a higher dividend, FEMB or VOO?
FEMB yields 6.19% while VOO yields 1.08%, so FEMB currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.