FFEM vs VTI
Fidelity Fundamental Emerging Markets ETF vs Vanguard Morningstar Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. FFEM delivered stronger 1-year returns. VTI offers more diversification with 3,543 holdings.
Side-by-Side Comparison
| Metric | FFEM | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.60% | 0.03% | |
| AUM | $62M | $666.9B | |
| Dividend Yield | 1.26% | 1.07% | |
| Holdings | 118 | 3,543 | |
| YTD Return | +22.14% | +14.82% | |
| 1Y Return | +43.25% | +22.43% | |
| 3Y Return (annualized) | - | +21.93% | |
| 5Y Return (annualized) | - | +12.34% | |
| Volatility (annualized) | 18.0% | 15.4% | |
| Max Drawdown | -16.3% | -56.6% | |
| Fund Family | Fidelity Investments (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Nov 19, 2024 | May 24, 2001 |
FFEM vs VTI Performance
Fidelity Fundamental Emerging Markets ETF (FFEM) is a ETF from Fidelity Investments (US) and Vanguard Morningstar Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year FFEM returned +43.25% while VTI returned +22.43%. Year to date, FFEM is up 22.14% versus a gain of 14.82% for VTI.
Risk: Volatility and Drawdowns
FFEM has been the more volatile fund, with annualized monthly volatility of 18.0% compared with 15.4% 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 -16.3% for FFEM and -56.6% for VTI. 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 0.73. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FFEM charges 0.60% per year while VTI charges 0.03%. On a $10,000 position that is $60 vs $3 annually, a gap of $57 per year that compounds over a long holding period. On income, FFEM currently yields 1.26% against 1.07% for VTI.
Holdings Overlap
FFEM and VTI share 0 holdings out of 2893 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FFEM or VTI?
FFEM has an expense ratio of 0.60% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $57 per year of difference.
Which performed better, FFEM or VTI?
Over the past year FFEM returned +43.25% vs +22.43% for VTI, so FFEM leads on 1-year performance. Over the longest common window we track (2 years), FFEM annualized +36.68% vs +8.16% for VTI. Past performance does not guarantee future results.
Which is riskier, FFEM or VTI?
FFEM has been the more volatile fund at 18.0% annualized versus 15.4% for VTI. Worst drawdown: FFEM -16.3% vs VTI -56.6%.
Should I hold both FFEM and VTI?
FFEM and VTI have a monthly-return correlation of 0.73, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FFEM and VTI?
FFEM and VTI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2893 unique securities.
Which pays a higher dividend, FFEM or VTI?
FFEM yields 1.26% while VTI yields 1.07%, so FFEM currently pays the higher dividend yield.
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