FESM vs VOO
Fidelity Enhanced Small Cap Core ETF vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. FESM delivered stronger 1-year returns. FESM offers more diversification with 583 holdings.
Side-by-Side Comparison
| Metric | FESM | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.28% | 0.03% | |
| AUM | $5.8B | $979.0B | |
| Dividend Yield | 0.71% | 1.09% | |
| Holdings | 625 | 509 | |
| YTD Return | +27.08% | +13.79% | |
| 1Y Return | +46.38% | +23.01% | |
| 3Y Return (annualized) | - | +21.78% | |
| 5Y Return (annualized) | - | +13.39% | |
| Volatility (annualized) | 19.8% | 14.1% | |
| Max Drawdown | -26.9% | -34.3% | |
| Fund Family | Fidelity Investments (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Nov 20, 2023 | Sep 7, 2010 |
FESM vs VOO Performance
Fidelity Enhanced Small Cap Core ETF (FESM) is a ETF from Fidelity Investments (US) and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year FESM returned +46.38% while VOO returned +23.01%. Year to date, FESM is up 27.08% versus a gain of 13.79% for VOO.
Risk: Volatility and Drawdowns
FESM has been the more volatile fund, with annualized monthly volatility of 19.8% compared with 14.1% 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 -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 0.78. 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 0.71% against 1.09% for VOO.
Holdings Overlap
FESM and VOO share 5 holdings out of 1083 unique holdings combined, representing a 0.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
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. On a $10,000 investment, that is $25 per year of difference.
Which performed better, FESM or VOO?
Over the past year FESM returned +46.38% vs +23.01% for VOO, so FESM leads on 1-year performance. Over the longest common window we track (3 years), FESM annualized +28.24% vs +13.57% for VOO. Past performance does not guarantee future results.
Which is riskier, FESM or VOO?
FESM has been the more volatile fund at 19.8% annualized versus 14.1% for VOO. Worst drawdown: FESM -26.9% vs VOO -34.3%.
Should I hold both FESM and VOO?
FESM and VOO have a monthly-return correlation of 0.78, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FESM and VOO?
FESM and VOO share 5 common holdings with a 0.2% weight overlap. Combined, they hold 1083 unique securities.
Which pays a higher dividend, FESM or VOO?
FESM yields 0.71% while VOO yields 1.09%, so VOO currently pays the higher dividend yield.
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