FRDM vs VOO
Freedom 100 Emerging Markets ETF vs Vanguard S&P 500 ETF
Which is better, FRDM or VOO?
FRDM has been ahead.
VOO has a lower expense ratio. FRDM led over 1Y, 3Y, 5Y and the full window. VOO is less concentrated, with 37.6% of the fund in its ten largest positions against 52.5%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | FRDM | VOO |
|---|---|---|
| Expense Ratio | 0.49% | 0.03%Best |
| AUM | $3.5B | $997.4B |
| Dividend Yield | 1.60% | 1.04% |
| Holdings | 136 | 509 |
| YTD Return | +33.62%Best | +12.37% |
| 1Y Return | +58.29%Best | +16.61% |
| 3Y Return (annualized) | +36.39%Best | +21.37% |
| 5Y Return (annualized) | +18.42%Best | +13.49% |
| Volatility (annualized) | 23.1% | 16.4%Best |
| Max Drawdown | -40.5% | -34.3%Best |
| $10,000 over 5 years | $23,288Best | $18,827 |
| Top 10 Weight | 52.5% | 37.6%Best |
| Fund Family | Freedom ETFs | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Blend |
| Inception | May 23, 2019 | Sep 7, 2010 |
Volatility and max drawdown are measured over the window both funds cover: May 23, 2019 to Sep 18, 2026 (7.3 years).
FRDM vs VOO growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 7.3 years both funds cover.
FRDM vs VOO Performance
Freedom 100 Emerging Markets ETF (FRDM) is an ETF from Freedom ETFs and Vanguard S&P 500 ETF (VOO) is an ETF from Vanguard (US). Over the past year FRDM returned +58.29% while VOO returned +16.61%. Year to date, FRDM is up 33.62% versus a gain of 12.37% for VOO.
Over three years, FRDM compounded at +36.39% per year against +21.37% for VOO; over five years the annualized figures are +18.42% and +13.49% respectively. Across the full 7-year window we track, FRDM has the edge at +17.15% annualized vs +15.79%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FRDM has been the more volatile fund, with annualized monthly volatility of 23.1% compared with 16.4% for VOO. 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 -40.5% for FRDM and -34.3% for VOO. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.76. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FRDM charges 0.49% per year while VOO charges 0.03%. On a $10,000 position that is $49 vs $3 annually, a gap of $46 per year that compounds over a long holding period. On income, FRDM currently yields 1.60% against 1.04% for VOO.
Holdings Overlap
We hold position weights for 127 holdings in FRDM and 494 in VOO, totalling 99.8% and 99.5% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 127 positions we hold weights for in FRDM and 494 in VOO, against full books of 136 and 509.
What only one of them owns
Our book lists 487 positions for VOO that do not appear in our book for FRDM (99.2% of the fund), and 5 for FRDM that do not appear in VOO (2.1%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
You are not choosing between two funds in isolation.
Whichever of FRDM and VOO you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, FRDM or VOO?
FRDM has an expense ratio of 0.49% while VOO charges 0.03%. VOO is the cheaper option, by $46 a year on a $10,000 investment.
Which performed better, FRDM or VOO?
Over the past year FRDM returned +58.29% vs +16.61% for VOO, so FRDM leads on 1-year performance. Over the longest common window we track (7 years), FRDM annualized +17.15% vs +15.79% for VOO. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FRDM or VOO?
FRDM has been the more volatile fund at 23.1% annualized versus 16.4% for VOO. Worst drawdown: FRDM -40.5% vs VOO -34.3%.
Should I hold both FRDM and VOO?
FRDM and VOO have a monthly-return correlation of 0.76, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, FRDM or VOO?
FRDM yields 1.60% while VOO yields 1.04%, so FRDM currently pays the higher dividend yield.
Is VOO better than FRDM?
VOO has a lower expense ratio. FRDM led over 1Y, 3Y, 5Y and the full window. VOO is less concentrated, with 37.6% of the fund in its ten largest positions against 52.5%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.