FRDM vs VTI
Freedom 100 Emerging Markets ETF vs Vanguard Morningstar Total Stock Market ETF
Which is better, FRDM or VTI?
FRDM has been ahead.
VTI has a lower expense ratio. FRDM led over 1Y, 3Y, 5Y and the full window.
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 | VTI |
|---|---|---|
| Expense Ratio | 0.49% | 0.03%Best |
| AUM | $3.4B | $666.9B |
| Dividend Yield | 1.65% | 1.07% |
| Holdings | 136 | 3,543 |
| YTD Return | +35.26%Best | +13.59% |
| 1Y Return | +69.69%Best | +20.00% |
| 3Y Return (annualized) | +36.02%Best | +20.95% |
| 5Y Return (annualized) | +17.56%Best | +11.81% |
| Volatility (annualized) | 23.1% | 16.9%Best |
| Max Drawdown | -40.5% | -35.0%Best |
| $10,000 over 5 years | $22,454Best | $17,474 |
| Fund Family | Freedom ETFs | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Blend |
| Inception | May 23, 2019 | May 24, 2001 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: May 23, 2019 to Sep 4, 2026 (7.3 years).
FRDM vs VTI 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 VTI Performance
Freedom 100 Emerging Markets ETF (FRDM) is an ETF from Freedom ETFs and Vanguard Morningstar Total Stock Market ETF (VTI) is an ETF from Vanguard (US). Over the past year FRDM returned +69.69% while VTI returned +20.00%. Year to date, FRDM is up 35.26% versus a gain of 13.59% for VTI.
Over three years, FRDM compounded at +36.02% per year against +20.95% for VTI; over five years the annualized figures are +17.56% and +11.81% respectively. Across the full 7-year window we track, FRDM has the edge at +17.45% annualized vs +15.42%.
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 16.9% for VTI. 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 -35.0% for VTI. 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 VTI 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 1.65% against 1.07% for VTI.
Holdings Overlap
We hold position weights for 127 holdings in FRDM and 2,787 in VTI, totalling 99.8% and 92.3% 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 2,787 in VTI, against full books of 136 and 3,543.
You are not choosing between two funds in isolation.
Whichever of FRDM and VTI 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 VTI?
FRDM has an expense ratio of 0.49% while VTI charges 0.03%. VTI is the cheaper option, by $46 a year on a $10,000 investment.
Which performed better, FRDM or VTI?
Over the past year FRDM returned +69.69% vs +20.00% for VTI, so FRDM leads on 1-year performance. Over the longest common window we track (7 years), FRDM annualized +17.45% vs +15.42% for VTI. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FRDM or VTI?
FRDM has been the more volatile fund at 23.1% annualized versus 16.9% for VTI. Worst drawdown: FRDM -40.5% vs VTI -35.0%.
Should I hold both FRDM and VTI?
FRDM and VTI 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 VTI?
FRDM yields 1.65% while VTI yields 1.07%, so FRDM currently pays the higher dividend yield.
Is VTI better than FRDM?
VTI has a lower expense ratio. FRDM led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.