FFA vs VOO
First Trust Enhanced Equity Income Fund vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. VOO delivered stronger 1-year returns. VOO offers more diversification with 509 holdings.
Side-by-Side Comparison
| Metric | FFA | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 1.13% | 0.03% | |
| AUM | $521M | $997.4B | |
| Dividend Yield | 6.19% | 1.08% | |
| Holdings | 86 | 509 | |
| YTD Return | +11.66% | +14.27% | |
| 1Y Return | +19.75% | +21.79% | |
| 3Y Return (annualized) | +17.89% | +22.19% | |
| 5Y Return (annualized) | +9.76% | +13.28% | |
| Volatility (annualized) | 16.6% | 14.2% | |
| Max Drawdown | -67.6% | -34.3% | |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) | |
| Category | Alternative | Equity | |
| Inception | Aug 26, 2004 | Sep 7, 2010 |
FFA vs VOO Performance
First Trust Enhanced Equity Income Fund (FFA) is a ETF from First Trust Portfolios (US) and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year FFA returned +19.75% while VOO returned +21.79%. Year to date, FFA is up 11.66% versus a gain of 14.27% for VOO.
Over three years, FFA compounded at +17.89% per year against +22.19% for VOO; over five years the annualized figures are +9.76% and +13.28% respectively. Across the full 16-year window we track, VOO has the edge at +13.59% annualized vs +2.55%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FFA has been the more volatile fund, with annualized monthly volatility of 16.6% compared with 14.2% 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 -67.6% for FFA 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 0.91. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
FFA charges 1.13% per year while VOO charges 0.03%. On a $10,000 position that is $113 vs $3 annually, a gap of $110 per year that compounds over a long holding period. On income, FFA currently yields 6.19% against 1.08% for VOO.
Holdings Overlap
FFA and VOO share 53 holdings out of 513 unique holdings combined, representing a 43.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FFA or VOO?
FFA has an expense ratio of 1.13% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $110 per year of difference.
Which performed better, FFA or VOO?
Over the past year FFA returned +19.75% vs +21.79% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (16 years), FFA annualized +2.55% vs +13.59% for VOO. Past performance does not guarantee future results.
Which is riskier, FFA or VOO?
FFA has been the more volatile fund at 16.6% annualized versus 14.2% for VOO. Worst drawdown: FFA -67.6% vs VOO -34.3%.
Should I hold both FFA and VOO?
FFA and VOO have a monthly-return correlation of 0.91, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between FFA and VOO?
FFA and VOO share 53 common holdings with a 43.4% weight overlap. Combined, they hold 513 unique securities.
Which pays a higher dividend, FFA or VOO?
FFA yields 6.19% while VOO yields 1.08%, so FFA currently pays the higher dividend yield.
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