FEP vs VTI
First Trust Europe AlphaDEX Fund vs Vanguard Morningstar Total Stock Market ETF
Which is better, FEP or VTI?
Mid Cap Blend against Large Cap Blend.
VTI has a lower expense ratio. FEP led over 1Y and 3Y, VTI over 5Y and the full window. FEP is less concentrated, with 9.8% of the fund in its ten largest positions against 33.3%.
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 | FEP | VTI |
|---|---|---|
| Expense Ratio | 0.80% | 0.03%Best |
| AUM | $534M | $666.9B |
| Dividend Yield | 2.65% | 1.03% |
| Holdings | 414 | 3,543 |
| YTD Return | +8.08% | +13.10%Best |
| 1Y Return | +17.44%Best | +17.01% |
| 3Y Return (annualized) | +24.72%Best | +22.26% |
| 5Y Return (annualized) | +9.88% | +11.98%Best |
| Volatility (annualized) | 19.1% | 14.7%Best |
| Max Drawdown | -48.6% | -35.0%Best |
| $10,000 over 5 years | $16,017 | $17,608Best |
| Top 10 Weight | 9.8%Best | 33.3% |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Mid Cap Blend | Large Cap Blend |
| Inception | Apr 18, 2011 | May 24, 2001 |
Volatility and max drawdown are measured over the window both funds cover: Apr 26, 2011 to Sep 24, 2026 (15.4 years).
FEP 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 15.4 years both funds cover.
FEP vs VTI Performance
First Trust Europe AlphaDEX Fund (FEP) 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 FEP returned +17.44% while VTI returned +17.01%. Year to date, FEP is up 8.08% versus a gain of 13.10% for VTI.
Over three years, FEP compounded at +24.72% per year against +22.26% for VTI; over five years the annualized figures are +9.88% and +11.98% respectively. Across the full 15-year window we track, VTI has the edge at +12.13% annualized vs +5.45%.
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 14.7% 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 -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 0.80. 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 2.65% against 1.03% for VTI.
Holdings Overlap
We hold position weights for 199 holdings in FEP and 3,463 in VTI, totalling 99.4% and 98.1% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 199 positions we hold weights for in FEP and 3,463 in VTI, against full books of 414 and 3,543.
What only one of them owns
Our book lists 1,150 positions for VTI that do not appear in our book for FEP (97.5% of the fund), and 2 for FEP that do not appear in VTI (1.1%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
You are not choosing between two funds in isolation.
Whichever of FEP 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, FEP or VTI?
FEP 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, FEP or VTI?
Over the past year FEP returned +17.44% vs +17.01% for VTI, so FEP leads on 1-year performance. Over the longest common window we track (15 years), FEP annualized +5.45% vs +12.13% for VTI. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FEP or VTI?
FEP has been the more volatile fund at 19.1% annualized versus 14.7% for VTI. Worst drawdown: FEP -48.6% vs VTI -35.0%.
Should I hold both FEP and VTI?
FEP and VTI have a monthly-return correlation of 0.80, 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, FEP or VTI?
FEP yields 2.65% while VTI yields 1.03%, so FEP currently pays the higher dividend yield.
Is VTI better than FEP?
VTI has a lower expense ratio. FEP led over 1Y and 3Y, VTI over 5Y and the full window. FEP is less concentrated, with 9.8% of the fund in its ten largest positions against 33.3%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.