FFA vs VOO
First Trust Enhanced Equity Income Fund vs Vanguard S&P 500 ETF
Which is better, FFA or VOO?
Multi Alternative against Large Cap Blend.
VOO has a lower expense ratio. VOO led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.91. VOO is less concentrated, with 36.4% of the fund in its ten largest positions against 47.7%.
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 | FFA | VOO |
|---|---|---|
| Expense Ratio | 1.13% | 0.03%Best |
| AUM | $514M | $997.4B |
| Dividend Yield | 6.19% | 1.08% |
| Holdings | 86 | 509 |
| YTD Return | +10.34% | +13.37%Best |
| 1Y Return | +17.22% | +20.08%Best |
| 3Y Return (annualized) | +16.82% | +21.29%Best |
| 5Y Return (annualized) | +9.12% | +12.89%Best |
| Volatility (annualized) | 15.6% | 14.1%Best |
| Max Drawdown | -44.4% | -34.3%Best |
| $10,000 over 5 years | $15,471 | $18,335Best |
| Top 10 Weight | 47.7% | 36.4%Best |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) |
| Category | Alternative | Equity |
| Style | Multi Alternative | Large Cap Blend |
| Inception | Aug 26, 2004 | Sep 7, 2010 |
Volatility and max drawdown are measured over the window both funds cover: Sep 9, 2010 to Sep 4, 2026 (16 years).
FFA 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 16 years both funds cover.
FFA vs VOO Performance
First Trust Enhanced Equity Income Fund (FFA) is an ETF from First Trust Portfolios (US) and Vanguard S&P 500 ETF (VOO) is an ETF from Vanguard (US). Over the past year FFA returned +17.22% while VOO returned +20.08%. Year to date, FFA is up 10.34% versus a gain of 13.37% for VOO.
Over three years, FFA compounded at +16.82% per year against +21.29% for VOO; over five years the annualized figures are +9.12% and +12.89% respectively. Across the full 16-year window we track, VOO has the edge at +13.48% annualized vs +7.02%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FFA has been the more volatile fund, with annualized monthly volatility of 15.6% 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 -44.4% for FFA and -34.3% 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 0.91. 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
91.8% of FFA's money is in holdings VOO also owns. 46.3% of VOO's money is in holdings FFA also owns.
Most of FFA is already inside VOO. Owning both mostly buys the same companies twice.
54 positions in common, counted across the 62 positions we hold weights for in FFA and 505 in VOO, against full books of 86 and 509.
What only one of them owns
Our book lists 443 positions for VOO that do not appear in our book for FFA (53.1% of the fund), and 6 for FFA that do not appear in VOO (5.2%).
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 FFA | Weight in VOO | Difference |
|---|---|---|---|
| AAPLApple, Inc | 9.34% | 6.59% | 2.75% |
| NVDANvidia Corp. | 7.31% | 7.51% | 0.20% |
| MSFTMicrosoft Corp 4.100 Feb 06 37 | 6.67% | 4.30% | 2.37% |
| GOOGAlphabet Inc. C | 7.17% | 2.59% | 4.58% |
| AVGOBroadcom Inc | 3.95% | 2.77% | 1.18% |
| AMZNAmazon.Com Inc | 2.66% | 3.62% | 0.96% |
| JPMJpmorgan Chase | 4.05% | 1.26% | 2.79% |
| LLYEli Lilly & Co. | 2.19% | 1.47% | 0.72% |
| MUMicron Technology, Inc. | 1.41% | 2.02% | 0.61% |
| CATCaterpillar, Inc. | 2.25% | 0.76% | 1.49% |
91.8% of FFA is already inside VOO.
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, FFA or VOO?
FFA has an expense ratio of 1.13% while VOO charges 0.03%. VOO is the cheaper option, by $110 a year on a $10,000 investment.
Which performed better, FFA or VOO?
Over the past year FFA returned +17.22% vs +20.08% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (16 years), FFA annualized +7.02% vs +13.48% for VOO. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FFA or VOO?
FFA has been the more volatile fund at 15.6% annualized versus 14.1% for VOO. Worst drawdown: FFA -44.4% 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. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
What is the holdings overlap between FFA and VOO?
91.8% of FFA's money is in holdings VOO also owns. 46.3% of VOO's is in holdings FFA also owns. They hold 54 positions in common, counted across the 62 positions we hold weights for in FFA and 505 in VOO.
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.
Is VOO better than FFA?
VOO has a lower expense ratio. VOO led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.91. VOO is less concentrated, with 36.4% of the fund in its ten largest positions against 47.7%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.