FRI vs VOO
First Trust S&P REIT Index 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 505 holdings.
Side-by-Side Comparison
| Metric | FRI | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.49% | 0.03% | |
| AUM | $202M | $979.0B | |
| Dividend Yield | 2.56% | 1.09% | |
| Holdings | 130 | 509 | |
| YTD Return | +16.98% | +13.79% | |
| 1Y Return | +22.59% | +23.01% | |
| 3Y Return (annualized) | +11.73% | +21.78% | |
| 5Y Return (annualized) | +4.71% | +13.39% | |
| Volatility (annualized) | 22.5% | 14.1% | |
| Max Drawdown | -73.3% | -34.3% | |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | May 8, 2007 | Sep 7, 2010 |
FRI vs VOO Performance
First Trust S&P REIT Index Fund (FRI) 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 FRI returned +22.59% while VOO returned +23.01%. Year to date, FRI is up 16.98% versus a gain of 13.79% for VOO.
Over three years, FRI compounded at +11.73% per year against +21.78% for VOO; over five years the annualized figures are +4.71% and +13.39% respectively. Across the full 16-year window we track, VOO has the edge at +13.57% annualized vs +3.18%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FRI has been the more volatile fund, with annualized monthly volatility of 22.5% 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 -73.3% for FRI 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 0.73. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FRI 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, FRI currently yields 2.56% against 1.09% for VOO.
Holdings Overlap
FRI and VOO share 25 holdings out of 608 unique holdings combined, representing a 1.6% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FRI or VOO?
FRI 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, FRI or VOO?
Over the past year FRI returned +22.59% vs +23.01% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (16 years), FRI annualized +3.18% vs +13.57% for VOO. Past performance does not guarantee future results.
Which is riskier, FRI or VOO?
FRI has been the more volatile fund at 22.5% annualized versus 14.1% for VOO. Worst drawdown: FRI -73.3% vs VOO -34.3%.
Should I hold both FRI and VOO?
FRI and VOO have a monthly-return correlation of 0.73, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FRI and VOO?
FRI and VOO share 25 common holdings with a 1.6% weight overlap. Combined, they hold 608 unique securities.
Which pays a higher dividend, FRI or VOO?
FRI yields 2.56% while VOO yields 1.09%, so FRI currently pays the higher dividend yield.
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