FMB vs VOO
First Trust Managed Municipal ETF vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. VOO delivered stronger 1-year returns. FMB offers more diversification with 1,279 holdings.
Side-by-Side Comparison
| Metric | FMB | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.39% | 0.03% | |
| AUM | $2.1B | $997.4B | |
| Dividend Yield | 3.62% | 1.08% | |
| Holdings | 1,279 | 509 | |
| YTD Return | +1.02% | +14.27% | |
| 1Y Return | +5.03% | +21.79% | |
| 3Y Return (annualized) | +3.44% | +22.19% | |
| 5Y Return (annualized) | +0.41% | +13.28% | |
| Volatility (annualized) | 4.9% | 14.2% | |
| Max Drawdown | -14.2% | -34.3% | |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | May 13, 2014 | Sep 7, 2010 |
FMB vs VOO Performance
First Trust Managed Municipal ETF (FMB) 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 FMB returned +5.03% while VOO returned +21.79%. Year to date, FMB is up 1.02% versus a gain of 14.27% for VOO.
Over three years, FMB compounded at +3.44% per year against +22.19% for VOO; over five years the annualized figures are +0.41% and +13.28% respectively. Across the full 12-year window we track, VOO has the edge at +13.59% annualized vs +1.37%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VOO has been the more volatile fund, with annualized monthly volatility of 14.2% compared with 4.9% for FMB. 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 -14.2% for FMB 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 0.41. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FMB charges 0.39% per year while VOO charges 0.03%. On a $10,000 position that is $39 vs $3 annually, a gap of $36 per year that compounds over a long holding period. On income, FMB currently yields 3.62% against 1.08% for VOO.
Holdings Overlap
FMB and VOO share 0 holdings out of 1141 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, FMB or VOO?
FMB has an expense ratio of 0.39% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $36 per year of difference.
Which performed better, FMB or VOO?
Over the past year FMB returned +5.03% vs +21.79% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (12 years), FMB annualized +1.37% vs +13.59% for VOO. Past performance does not guarantee future results.
Which is riskier, FMB or VOO?
VOO has been the more volatile fund at 14.2% annualized versus 4.9% for FMB. Worst drawdown: FMB -14.2% vs VOO -34.3%.
Should I hold both FMB and VOO?
FMB and VOO have a monthly-return correlation of 0.41, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FMB and VOO?
FMB and VOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1141 unique securities.
Which pays a higher dividend, FMB or VOO?
FMB yields 3.62% while VOO yields 1.08%, so FMB currently pays the higher dividend yield.
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