FEP vs VOO
First Trust Europe AlphaDEX Fund vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. FEP delivered stronger 1-year returns. VOO offers more diversification with 509 holdings.
Side-by-Side Comparison
| Metric | FEP | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.80% | 0.03% | |
| AUM | $534M | $997.4B | |
| Dividend Yield | 2.72% | 1.08% | |
| Holdings | 209 | 509 | |
| YTD Return | +12.37% | +14.27% | |
| 1Y Return | +22.31% | +21.79% | |
| 3Y Return (annualized) | +25.04% | +22.19% | |
| 5Y Return (annualized) | +10.13% | +13.28% | |
| Volatility (annualized) | 19.1% | 14.2% | |
| Max Drawdown | -48.6% | -34.3% | |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Apr 18, 2011 | Sep 7, 2010 |
FEP vs VOO Performance
First Trust Europe AlphaDEX Fund (FEP) 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 FEP returned +22.31% while VOO returned +21.79%. Year to date, FEP is up 12.37% versus a gain of 14.27% for VOO.
Over three years, FEP compounded at +25.04% per year against +22.19% for VOO; over five years the annualized figures are +10.13% and +13.28% respectively. Across the full 15-year window we track, VOO has the edge at +13.59% annualized vs +5.76%. 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 14.2% 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 -48.6% for FEP 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 0.80. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FEP charges 0.80% per year while 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, FEP currently yields 2.72% against 1.08% for VOO.
Holdings Overlap
FEP and VOO 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 VOO | Difference |
|---|---|---|---|
| MRK | 0.41% | 0.49% | 0.08% |
Frequently Asked Questions
Which is cheaper, FEP or VOO?
FEP 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, FEP or VOO?
Over the past year FEP returned +22.31% vs +21.79% for VOO, so FEP leads on 1-year performance. Over the longest common window we track (15 years), FEP annualized +5.76% vs +13.59% for VOO. Past performance does not guarantee future results.
Which is riskier, FEP or VOO?
FEP has been the more volatile fund at 19.1% annualized versus 14.2% for VOO. Worst drawdown: FEP -48.6% vs VOO -34.3%.
Should I hold both FEP and VOO?
FEP and VOO 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 VOO?
FEP and VOO share 1 common holdings with a 0.4% weight overlap. Combined, they hold 704 unique securities.
Which pays a higher dividend, FEP or VOO?
FEP yields 2.72% while VOO yields 1.08%, so FEP currently pays the higher dividend yield.
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