FEP vs VTI

Quick Verdict

VTI has a lower expense ratio. VTI delivered stronger 1-year returns. VTI offers more diversification with 3,543 holdings.

Lower Fees: VTIHigher Returns: VTIMore Diversified: VTI

Side-by-Side Comparison

MetricFEPVTIWinner
Expense Ratio0.80%0.03%
AUM$534M$666.9B
Dividend Yield2.72%1.07%
Holdings2093,543
YTD Return+12.37%+14.82%
1Y Return+22.31%+22.43%
3Y Return (annualized)+25.04%+21.93%
5Y Return (annualized)+10.13%+12.34%
Volatility (annualized)19.1%15.4%
Max Drawdown-48.6%-56.6%
Fund FamilyFirst Trust Portfolios (US)Vanguard (US)
CategoryEquityEquity
InceptionApr 18, 2011May 24, 2001

FEP vs VTI Performance

First Trust Europe AlphaDEX Fund (FEP) is a ETF from First Trust Portfolios (US) and Vanguard Morningstar Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year FEP returned +22.31% while VTI returned +22.43%. Year to date, FEP is up 12.37% versus a gain of 14.82% for VTI.

Over three years, FEP compounded at +25.04% per year against +21.93% for VTI; over five years the annualized figures are +10.13% and +12.34% respectively. Across the full 15-year window we track, VTI has the edge at +8.16% 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 15.4% 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 -48.6% for FEP and -56.6% for VTI. 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 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, FEP currently yields 2.72% against 1.07% for VTI.

Holdings Overlap

0.4%overlap

FEP and VTI share 1 holdings out of 2986 unique holdings combined, representing a 0.4% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in FEPWeight in VTIDifference
MRK0.41%0.44%0.03%

Frequently Asked Questions

Which is cheaper, FEP or VTI?

FEP has an expense ratio of 0.80% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $77 per year of difference.

Which performed better, FEP or VTI?

Over the past year FEP returned +22.31% vs +22.43% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (15 years), FEP annualized +5.76% vs +8.16% for VTI. Past performance does not guarantee future results.

Which is riskier, FEP or VTI?

FEP has been the more volatile fund at 19.1% annualized versus 15.4% for VTI. Worst drawdown: FEP -48.6% vs VTI -56.6%.

Should I hold both FEP and VTI?

FEP and VTI 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 VTI?

FEP and VTI share 1 common holdings with a 0.4% weight overlap. Combined, they hold 2986 unique securities.

Which pays a higher dividend, FEP or VTI?

FEP yields 2.72% while VTI yields 1.07%, so FEP currently pays the higher dividend yield.

Get Full ETF Analytics

Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.