FESM vs VOO
Fidelity Enhanced Small Cap Core ETF vs Vanguard S&P 500 ETF
Which is better, FESM or VOO?
Small Cap Blend against Large Cap Blend.
VOO has a lower expense ratio. FESM led over 1Y and the full window. FESM is less concentrated, with 6.7% of the fund in its ten largest positions against 37.6%.
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 | FESM | VOO |
|---|---|---|
| Expense Ratio | 0.28% | 0.03%Best |
| AUM | $6.0B | $997.4B |
| Dividend Yield | 0.72% | 1.04% |
| Holdings | 789 | 509 |
| YTD Return | +21.08%Best | +14.14% |
| 1Y Return | +24.93%Best | +17.31% |
| 3Y Return (annualized) | - | +23.16% |
| 5Y Return (annualized) | - | +13.85% |
| Volatility (annualized) | 19.7% | 11.7%Best |
| Max Drawdown | -26.9% | -18.7%Best |
| $10,000 over 2.8 years | $18,599Best | $17,563 |
| Top 10 Weight | 6.7%Best | 37.6% |
| Fund Family | Fidelity Investments (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Small Cap Blend | Large Cap Blend |
| Inception | Nov 20, 2023 | Sep 7, 2010 |
Volatility and max drawdown, and the $10,000 over 2.8 years row, are measured over the window both funds cover: Nov 20, 2023 to Sep 21, 2026 (2.8 years).
FESM vs VOO 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 2.8 years both funds cover.
FESM vs VOO Performance
Fidelity Enhanced Small Cap Core ETF (FESM) is an ETF from Fidelity Investments (US) and Vanguard S&P 500 ETF (VOO) is an ETF from Vanguard (US). Over the past year FESM returned +24.93% while VOO returned +17.31%. Year to date, FESM is up 21.08% versus a gain of 14.14% for VOO.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FESM has been the more volatile fund, with annualized monthly volatility of 19.7% compared with 11.7% 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 -26.9% for FESM and -18.7% for VOO. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.78. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FESM charges 0.28% per year while VOO charges 0.03%. On a $10,000 position that is $28 vs $3 annually, a gap of $25 per year that compounds over a long holding period. On income, FESM currently yields 0.72% against 1.04% for VOO.
Holdings Overlap
0.1% of VOO's money is in holdings FESM also owns.
We cannot see either book well enough to say how much of this pair is duplicated.
3 positions in common, counted across the 845 positions we hold weights for in FESM and 494 in VOO, against full books of 789 and 509.
What only one of them owns
Our book lists 484 positions for VOO that do not appear in our book for FESM (99.0% of the fund), and 705 for FESM that do not appear in VOO (94.0%).
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 FESM and VOO 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, FESM or VOO?
FESM has an expense ratio of 0.28% while VOO charges 0.03%. VOO is the cheaper option, by $25 a year on a $10,000 investment.
Which performed better, FESM or VOO?
Over the past year FESM returned +24.93% vs +17.31% for VOO, so FESM leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FESM or VOO?
FESM has been the more volatile fund at 19.7% annualized versus 11.7% for VOO. Worst drawdown: FESM -26.9% vs VOO -18.7%.
Should I hold both FESM and VOO?
FESM and VOO have a monthly-return correlation of 0.78, 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, FESM or VOO?
FESM yields 0.72% while VOO yields 1.04%, so VOO currently pays the higher dividend yield.
Is VOO better than FESM?
VOO has a lower expense ratio. FESM led over 1Y and the full window. FESM is less concentrated, with 6.7% of the fund in its ten largest positions against 37.6%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.