FEMS vs VTI
First Trust Emerging Markets Small Cap AlphaDEX Fund vs Vanguard Morningstar Total Stock Market ETF
Which is better, FEMS or VTI?
Small Cap Value against Large Cap Blend.
VTI has a lower expense ratio. VTI led over 1Y, 3Y, 5Y and the full window.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | FEMS | VTI |
|---|---|---|
| Expense Ratio | 0.80% | 0.03%Best |
| AUM | $238M | $666.9B |
| Dividend Yield | 4.09% | 1.03% |
| Holdings | 218 | 3,543 |
| YTD Return | +11.20% | +11.65%Best |
| 1Y Return | +10.29% | +17.34%Best |
| 3Y Return (annualized) | +10.50% | +20.35%Best |
| 5Y Return (annualized) | +5.47% | +11.72%Best |
| Volatility (annualized) | 19.2% | 14.4%Best |
| Max Drawdown | -52.3% | -35.0%Best |
| $10,000 over 5 years | $13,051 | $17,404Best |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Small Cap Value | Large Cap Blend |
| Inception | Feb 15, 2012 | May 24, 2001 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Feb 17, 2012 to Sep 10, 2026 (14.6 years).
FEMS vs VTI growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 14.6 years both funds cover.
FEMS vs VTI Performance
First Trust Emerging Markets Small Cap AlphaDEX Fund (FEMS) is an ETF from First Trust Portfolios (US) and Vanguard Morningstar Total Stock Market ETF (VTI) is an ETF from Vanguard (US). Over the past year FEMS returned +10.29% while VTI returned +17.34%. Year to date, FEMS is up 11.20% versus a gain of 11.65% for VTI.
Over three years, FEMS compounded at +10.50% per year against +20.35% for VTI; over five years the annualized figures are +5.47% and +11.72% respectively. Across the full 15-year window we track, VTI has the edge at +12.73% annualized vs +4.72%.
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 14.4% 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 -52.3% for FEMS and -35.0% for VTI. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.63. They move together some of the time, and apart the rest.
Fees and Cost Over Time
FEMS charges 0.80% per year while VTI 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 4.09% against 1.03% for VTI.
Holdings Overlap
At least 0.9% of FEMS's money is in holdings VTI also owns.
Stated as a floor: for VTI, our book for it covers 90.6% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
We cannot see either book well enough to say how much of this pair is duplicated.
The two holdings books were reported 91 days apart, FEMS as of Mar 31, 2026 and VTI as of Jun 30, 2026, so some of the difference between them is the time between the two reports rather than the funds.
1 positions in common, counted across the 203 positions we hold weights for in FEMS and 2,787 in VTI, against full books of 218 and 3,543.
Top Shared Holdings
| Stock | Weight in FEMS | Weight in VTI | Difference |
|---|---|---|---|
| RCLRoyal Caribbean Cruises Ltd. | 0.91% | 0.11% | 0.80% |
You are not choosing between two funds in isolation.
Whichever of FEMS and VTI you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, FEMS or VTI?
FEMS has an expense ratio of 0.80% while VTI charges 0.03%. VTI is the cheaper option, by $77 a year on a $10,000 investment.
Which performed better, FEMS or VTI?
Over the past year FEMS returned +10.29% vs +17.34% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (15 years), FEMS annualized +4.72% vs +12.73% for VTI. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FEMS or VTI?
FEMS has been the more volatile fund at 19.2% annualized versus 14.4% for VTI. Worst drawdown: FEMS -52.3% vs VTI -35.0%.
Should I hold both FEMS and VTI?
FEMS and VTI have a monthly-return correlation of 0.63, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, FEMS or VTI?
FEMS yields 4.09% while VTI yields 1.03%, so FEMS currently pays the higher dividend yield.
Is VTI better than FEMS?
VTI has a lower expense ratio. VTI led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.