FEMS vs VOO
First Trust Emerging Markets Small Cap AlphaDEX Fund 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 | FEMS | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.80% | 0.03% | |
| AUM | $254M | $997.4B | |
| Dividend Yield | 4.43% | 1.08% | |
| Holdings | 218 | 509 | |
| YTD Return | +8.91% | +12.95% | |
| 1Y Return | +10.60% | +20.69% | |
| 3Y Return (annualized) | +10.70% | +22.09% | |
| 5Y Return (annualized) | +5.82% | +13.40% | |
| Volatility (annualized) | 19.2% | 14.1% | |
| Max Drawdown | -52.3% | -34.3% | |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Feb 15, 2012 | Sep 7, 2010 |
FEMS vs VOO Performance
First Trust Emerging Markets Small Cap AlphaDEX Fund (FEMS) 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 FEMS returned +10.60% while VOO returned +20.69%. Year to date, FEMS is up 8.91% versus a gain of 12.95% for VOO.
Over three years, FEMS compounded at +10.70% per year against +22.09% for VOO; over five years the annualized figures are +5.82% and +13.40% respectively. Across the full 15-year window we track, VOO has the edge at +13.50% annualized vs +4.59%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FEMS has been the more volatile fund, with annualized monthly volatility of 19.2% 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 -52.3% for FEMS 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 0.62. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FEMS 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, FEMS currently yields 4.43% against 1.08% for VOO.
Holdings Overlap
FEMS and VOO share 1 holdings out of 707 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 FEMS | Weight in VOO | Difference |
|---|---|---|---|
| RCL | 0.91% | 0.12% | 0.79% |
Frequently Asked Questions
Which is cheaper, FEMS or VOO?
FEMS 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, FEMS or VOO?
Over the past year FEMS returned +10.60% vs +20.69% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (15 years), FEMS annualized +4.59% vs +13.50% for VOO. Past performance does not guarantee future results.
Which is riskier, FEMS or VOO?
FEMS has been the more volatile fund at 19.2% annualized versus 14.1% for VOO. Worst drawdown: FEMS -52.3% vs VOO -34.3%.
Should I hold both FEMS and VOO?
FEMS and VOO have a monthly-return correlation of 0.62, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FEMS and VOO?
FEMS and VOO share 1 common holdings with a 0.1% weight overlap. Combined, they hold 707 unique securities.
Which pays a higher dividend, FEMS or VOO?
FEMS yields 4.43% while VOO yields 1.08%, so FEMS currently pays the higher dividend yield.
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