FEP vs IVV
First Trust Europe AlphaDEX Fund vs iShares Core S&P 500 ETF
Quick Verdict
IVV has a lower expense ratio. FEP delivered stronger 1-year returns. IVV offers more diversification with 508 holdings.
Side-by-Side Comparison
| Metric | FEP | IVV | Winner |
|---|---|---|---|
| Expense Ratio | 0.80% | 0.03% | |
| AUM | $534M | $907.0B | |
| Dividend Yield | 2.72% | 1.10% | |
| Holdings | 209 | 508 | |
| YTD Return | +11.54% | +12.96% | |
| 1Y Return | +21.84% | +20.70% | |
| 3Y Return (annualized) | +24.99% | +22.10% | |
| 5Y Return (annualized) | +10.23% | +13.40% | |
| Volatility (annualized) | 19.1% | 15.1% | |
| Max Drawdown | -48.6% | -56.5% | |
| Fund Family | First Trust Portfolios (US) | iShares by BlackRock (US) | |
| Category | Equity | Equity | |
| Inception | Apr 18, 2011 | May 15, 2000 |
FEP vs IVV Performance
First Trust Europe AlphaDEX Fund (FEP) is a ETF from First Trust Portfolios (US) and iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US). Over the past year FEP returned +21.84% while IVV returned +20.70%. Year to date, FEP is up 11.54% versus a gain of 12.96% for IVV.
Over three years, FEP compounded at +24.99% per year against +22.10% for IVV; over five years the annualized figures are +10.23% and +13.40% respectively. Across the full 15-year window we track, IVV has the edge at +7.01% annualized vs +5.71%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FEP has been the more volatile fund, with annualized monthly volatility of 19.1% compared with 15.1% for IVV. 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 -48.6% for FEP and -56.5% for IVV. 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 0.80. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FEP charges 0.80% per year while IVV 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, FEP currently yields 2.72% against 1.10% for IVV.
Holdings Overlap
FEP and IVV share 1 holdings out of 704 unique holdings combined, representing a 0.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in FEP | Weight in IVV | Difference |
|---|---|---|---|
| MRK | 0.41% | 0.48% | 0.07% |
Frequently Asked Questions
Which is cheaper, FEP or IVV?
FEP has an expense ratio of 0.80% while IVV charges 0.03%. IVV is the cheaper option. On a $10,000 investment, that is $77 per year of difference.
Which performed better, FEP or IVV?
Over the past year FEP returned +21.84% vs +20.70% for IVV, so FEP leads on 1-year performance. Over the longest common window we track (15 years), FEP annualized +5.71% vs +7.01% for IVV. Past performance does not guarantee future results.
Which is riskier, FEP or IVV?
FEP has been the more volatile fund at 19.1% annualized versus 15.1% for IVV. Worst drawdown: FEP -48.6% vs IVV -56.5%.
Should I hold both FEP and IVV?
FEP and IVV have a monthly-return correlation of 0.80, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FEP and IVV?
FEP and IVV share 1 common holdings with a 0.4% weight overlap. Combined, they hold 704 unique securities.
Which pays a higher dividend, FEP or IVV?
FEP yields 2.72% while IVV yields 1.10%, so FEP currently pays the higher dividend yield.
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