FRDM vs VOO
Freedom 100 Emerging Markets ETF vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. FRDM delivered stronger 1-year returns. VOO offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | FRDM | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.49% | 0.03% | |
| AUM | $3.3B | $979.0B | |
| Dividend Yield | 1.53% | 1.09% | |
| Holdings | 134 | 509 | |
| YTD Return | +26.72% | +13.80% | |
| 1Y Return | +61.24% | +23.71% | |
| 3Y Return (annualized) | +31.34% | +21.50% | |
| 5Y Return (annualized) | +16.76% | +13.44% | |
| Volatility (annualized) | 23.2% | 14.1% | |
| Max Drawdown | -40.5% | -34.3% | |
| Fund Family | Freedom ETFs | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | May 23, 2019 | Sep 7, 2010 |
FRDM vs VOO Performance
Freedom 100 Emerging Markets ETF (FRDM) is a ETF from Freedom ETFs and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year FRDM returned +61.24% while VOO returned +23.71%. Year to date, FRDM is up 26.72% versus a gain of 13.80% for VOO.
Over three years, FRDM compounded at +31.34% per year against +21.50% for VOO; over five years the annualized figures are +16.76% and +13.44% respectively. Across the full 7-year window we track, FRDM has the edge at +16.59% annualized vs +13.58%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FRDM has been the more volatile fund, with annualized monthly volatility of 23.2% compared with 14.1% 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 worth weighing if you expect to sell during market stress rather than ride it out.
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 1.53% against 1.09% for VOO.
Holdings Overlap
FRDM and VOO share 0 holdings out of 632 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, FRDM or VOO?
FRDM has an expense ratio of 0.49% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $46 per year of difference.
Which performed better, FRDM or VOO?
Over the past year FRDM returned +61.24% vs +23.71% for VOO, so FRDM leads on 1-year performance. Over the longest common window we track (7 years), FRDM annualized +16.59% vs +13.58% for VOO. Past performance does not guarantee future results.
Which is riskier, FRDM or VOO?
FRDM has been the more volatile fund at 23.2% annualized versus 14.1% 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 combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FRDM and VOO?
FRDM and VOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 632 unique securities.
Which pays a higher dividend, FRDM or VOO?
FRDM yields 1.53% while VOO yields 1.09%, so FRDM currently pays the higher dividend yield.
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