FMB vs VTI
First Trust Managed Municipal 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 | FMB | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.39% | 0.03% | |
| AUM | $2.1B | $666.9B | |
| Dividend Yield | 3.62% | 1.07% | |
| Holdings | 1,279 | 3,543 | |
| YTD Return | +0.50% | +13.38% | |
| 1Y Return | +4.56% | +21.12% | |
| 3Y Return (annualized) | +3.51% | +21.85% | |
| 5Y Return (annualized) | +0.31% | +12.44% | |
| Volatility (annualized) | 4.9% | 15.3% | |
| Max Drawdown | -14.2% | -56.6% | |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | May 13, 2014 | May 24, 2001 |
FMB vs VTI Performance
First Trust Managed Municipal ETF (FMB) 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 FMB returned +4.56% while VTI returned +21.12%. Year to date, FMB is up 0.50% versus a gain of 13.38% for VTI.
Over three years, FMB compounded at +3.51% per year against +21.85% for VTI; over five years the annualized figures are +0.31% and +12.44% respectively. Across the full 12-year window we track, VTI has the edge at +8.10% annualized vs +1.32%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTI has been the more volatile fund, with annualized monthly volatility of 15.3% 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 -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 0.42. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FMB charges 0.39% per year while VTI 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 1.07% for VTI.
Holdings Overlap
FMB and VTI share 0 holdings out of 3423 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 VTI?
FMB has an expense ratio of 0.39% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $36 per year of difference.
Which performed better, FMB or VTI?
Over the past year FMB returned +4.56% vs +21.12% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (12 years), FMB annualized +1.32% vs +8.10% for VTI. Past performance does not guarantee future results.
Which is riskier, FMB or VTI?
VTI has been the more volatile fund at 15.3% annualized versus 4.9% for FMB. Worst drawdown: FMB -14.2% vs VTI -56.6%.
Should I hold both FMB and VTI?
FMB and VTI have a monthly-return correlation of 0.42, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FMB and VTI?
FMB and VTI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 3423 unique securities.
Which pays a higher dividend, FMB or VTI?
FMB yields 3.62% while VTI yields 1.07%, so FMB currently pays the higher dividend yield.
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