FESM vs VTI
Fidelity Enhanced Small Cap Core ETF vs Vanguard Morningstar Total Stock Market ETF
Which is better, FESM or VTI?
Small Cap Blend against Large Cap Blend.
VTI 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 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 | FESM | VTI |
|---|---|---|
| Expense Ratio | 0.28% | 0.03%Best |
| AUM | $6.0B | $666.9B |
| Dividend Yield | 0.72% | 1.03% |
| Holdings | 789 | 3,543 |
| YTD Return | +21.08%Best | +14.00% |
| 1Y Return | +24.93%Best | +16.88% |
| 3Y Return (annualized) | - | +22.75% |
| 5Y Return (annualized) | - | +12.68% |
| Volatility (annualized) | 19.7% | 12.0%Best |
| Max Drawdown | -26.9% | -19.3%Best |
| $10,000 over 2.8 years | $18,599Best | $17,442 |
| Top 10 Weight | 6.7%Best | 33.3% |
| Fund Family | Fidelity Investments (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Small Cap Blend | Large Cap Blend |
| Inception | Nov 20, 2023 | May 24, 2001 |
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 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 2.8 years both funds cover.
FESM vs VTI Performance
Fidelity Enhanced Small Cap Core ETF (FESM) is an ETF from Fidelity Investments (US) and Vanguard Morningstar Total Stock Market ETF (VTI) is an ETF from Vanguard (US). Over the past year FESM returned +24.93% while VTI returned +16.88%. Year to date, FESM is up 21.08% versus a gain of 14.00% for VTI.
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 12.0% 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 -26.9% for FESM and -19.3% 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 0.83. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FESM charges 0.28% per year while VTI 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 1.03% for VTI.
Holdings Overlap
92.2% of FESM's money is in holdings VTI also owns. 2.3% of VTI's money is in holdings FESM also owns.
Most of FESM is already inside VTI. Owning both mostly buys the same companies twice.
785 positions in common, counted across the 845 positions we hold weights for in FESM and 3,463 in VTI, against full books of 789 and 3,543.
What only one of them owns
Our book lists 958 positions for VTI that do not appear in our book for FESM (95.2% of the fund), and 29 for FESM that do not appear in VTI (2.9%).
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.
Top Shared Holdings
| Stock | Weight in FESM | Weight in VTI | Difference |
|---|---|---|---|
| CMCCommercial Metals Co | 0.76% | 0.01% | 0.75% |
| OSCROscar Health, Inc. | 0.70% | 0.01% | 0.69% |
| IBPInstalled Building Products | 0.70% | 0.01% | 0.69% |
| TENBTenable Holdings Inc | 0.69% | 0.01% | 0.68% |
| OPCHOption Care Health Inc | 0.67% | 0.01% | 0.66% |
| PLXSPlexus Corp | 0.65% | 0.01% | 0.64% |
| HQYHealthequity Inc | 0.64% | 0.01% | 0.63% |
| TPCTutor Perini Corp | 0.64% | 0.01% | 0.63% |
| KGSKodiak Gas Services Inccommon Stock | 0.63% | 0.01% | 0.62% |
| GFFGriffon Corp. | 0.63% | 0.01% | 0.62% |
92.2% of FESM is already inside VTI.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, FESM or VTI?
FESM has an expense ratio of 0.28% while VTI charges 0.03%. VTI is the cheaper option, by $25 a year on a $10,000 investment.
Which performed better, FESM or VTI?
Over the past year FESM returned +24.93% vs +16.88% for VTI, 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 VTI?
FESM has been the more volatile fund at 19.7% annualized versus 12.0% for VTI. Worst drawdown: FESM -26.9% vs VTI -19.3%.
Should I hold both FESM and VTI?
FESM and VTI have a monthly-return correlation of 0.83, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between FESM and VTI?
92.2% of FESM's money is in holdings VTI also owns. 2.3% of VTI's is in holdings FESM also owns. They hold 785 positions in common, counted across the 845 positions we hold weights for in FESM and 3,463 in VTI.
Which pays a higher dividend, FESM or VTI?
FESM yields 0.72% while VTI yields 1.03%, so VTI currently pays the higher dividend yield.
Is VTI better than FESM?
VTI 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 33.3%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.