FIW vs VTI
First Trust Water ETF vs Vanguard Morningstar Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. VTI delivered stronger 1-year returns. VTI offers more diversification with 3,543 holdings.
Side-by-Side Comparison
| Metric | FIW | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.50% | 0.03% | |
| AUM | $1.9B | $666.9B | |
| Dividend Yield | 0.72% | 1.07% | |
| Holdings | 38 | 3,543 | |
| YTD Return | +2.78% | +14.96% | |
| 1Y Return | -1.51% | +22.39% | |
| 3Y Return (annualized) | +8.48% | +21.51% | |
| 5Y Return (annualized) | +5.41% | +12.36% | |
| Volatility (annualized) | 18.8% | 15.4% | |
| Max Drawdown | -53.1% | -56.6% | |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | May 8, 2007 | May 24, 2001 |
FIW vs VTI Performance
First Trust Water ETF (FIW) is a ETF from First Trust Portfolios (US) and Vanguard Morningstar Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year FIW returned -1.51% while VTI returned +22.39%. Year to date, FIW is up 2.78% versus a gain of 14.96% for VTI.
Over three years, FIW compounded at +8.48% per year against +21.51% for VTI; over five years the annualized figures are +5.41% and +12.36% respectively. Across the full 19-year window we track, FIW has the edge at +9.52% annualized vs +8.16%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FIW has been the more volatile fund, with annualized monthly volatility of 18.8% 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 -53.1% for FIW 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 0.88. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FIW charges 0.50% per year while VTI charges 0.03%. On a $10,000 position that is $50 vs $3 annually, a gap of $47 per year that compounds over a long holding period. On income, FIW currently yields 0.72% against 1.07% for VTI.
Holdings Overlap
FIW and VTI share 29 holdings out of 2794 unique holdings combined, representing a 0.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FIW or VTI?
FIW has an expense ratio of 0.50% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $47 per year of difference.
Which performed better, FIW or VTI?
Over the past year FIW returned -1.51% vs +22.39% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (19 years), FIW annualized +9.52% vs +8.16% for VTI. Past performance does not guarantee future results.
Which is riskier, FIW or VTI?
FIW has been the more volatile fund at 18.8% annualized versus 15.4% for VTI. Worst drawdown: FIW -53.1% vs VTI -56.6%.
Should I hold both FIW and VTI?
FIW and VTI have a monthly-return correlation of 0.88, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FIW and VTI?
FIW and VTI share 29 common holdings with a 0.5% weight overlap. Combined, they hold 2794 unique securities.
Which pays a higher dividend, FIW or VTI?
FIW yields 0.72% while VTI yields 1.07%, so VTI currently pays the higher dividend yield.
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