FMF vs VOO
First Trust Managed Futures Strategy Fund vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. VOO delivered stronger 1-year returns. VOO offers more diversification with 509 holdings.
Side-by-Side Comparison
| Metric | FMF | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.98% | 0.03% | |
| AUM | $261M | $997.4B | |
| Dividend Yield | 5.05% | 1.08% | |
| Holdings | 11 | 509 | |
| YTD Return | +7.84% | +14.27% | |
| 1Y Return | +13.37% | +21.79% | |
| 3Y Return (annualized) | +5.89% | +22.19% | |
| 5Y Return (annualized) | +4.73% | +13.28% | |
| Volatility (annualized) | 7.3% | 14.2% | |
| Max Drawdown | -24.8% | -34.3% | |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) | |
| Category | Alternative | Equity | |
| Inception | Aug 1, 2013 | Sep 7, 2010 |
FMF vs VOO Performance
First Trust Managed Futures Strategy Fund (FMF) 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 FMF returned +13.37% while VOO returned +21.79%. Year to date, FMF is up 7.84% versus a gain of 14.27% for VOO.
Over three years, FMF compounded at +5.89% per year against +22.19% for VOO; over five years the annualized figures are +4.73% and +13.28% respectively. Across the full 13-year window we track, VOO has the edge at +13.59% annualized vs +1.48%. 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 7.3% for FMF. 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 -24.8% for FMF 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 0.07. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FMF charges 0.98% per year while VOO charges 0.03%. On a $10,000 position that is $98 vs $3 annually, a gap of $95 per year that compounds over a long holding period. On income, FMF currently yields 5.05% against 1.08% for VOO.
Holdings Overlap
FMF and VOO share 0 holdings out of 507 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, FMF or VOO?
FMF has an expense ratio of 0.98% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $95 per year of difference.
Which performed better, FMF or VOO?
Over the past year FMF returned +13.37% vs +21.79% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (13 years), FMF annualized +1.48% vs +13.59% for VOO. Past performance does not guarantee future results.
Which is riskier, FMF or VOO?
VOO has been the more volatile fund at 14.2% annualized versus 7.3% for FMF. Worst drawdown: FMF -24.8% vs VOO -34.3%.
Should I hold both FMF and VOO?
FMF and VOO have a monthly-return correlation of 0.07, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FMF and VOO?
FMF and VOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 507 unique securities.
Which pays a higher dividend, FMF or VOO?
FMF yields 5.05% while VOO yields 1.08%, so FMF currently pays the higher dividend yield.
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