FSMB vs VOO
First Trust Short Duration Managed Municipal ETF vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. VOO delivered stronger 1-year returns. FSMB offers more diversification with 557 holdings.
Side-by-Side Comparison
| Metric | FSMB | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.34% | 0.03% | |
| AUM | $632M | $997.4B | |
| Dividend Yield | 3.18% | 1.08% | |
| Holdings | 557 | 509 | |
| YTD Return | +1.41% | +14.27% | |
| 1Y Return | +2.68% | +21.79% | |
| 3Y Return (annualized) | +3.43% | +22.19% | |
| 5Y Return (annualized) | +1.41% | +13.28% | |
| Volatility (annualized) | 2.6% | 14.2% | |
| Max Drawdown | -6.3% | -34.3% | |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Nov 1, 2018 | Sep 7, 2010 |
FSMB vs VOO Performance
First Trust Short Duration Managed Municipal ETF (FSMB) 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 FSMB returned +2.68% while VOO returned +21.79%. Year to date, FSMB is up 1.41% versus a gain of 14.27% for VOO.
Over three years, FSMB compounded at +3.43% per year against +22.19% for VOO; over five years the annualized figures are +1.41% and +13.28% respectively. Across the full 8-year window we track, VOO has the edge at +13.59% annualized vs +1.55%. 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 2.6% for FSMB. 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 -6.3% for FSMB 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 0.52. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FSMB charges 0.34% per year while VOO charges 0.03%. On a $10,000 position that is $34 vs $3 annually, a gap of $31 per year that compounds over a long holding period. On income, FSMB currently yields 3.18% against 1.08% for VOO.
Holdings Overlap
FSMB and VOO share 0 holdings out of 835 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, FSMB or VOO?
FSMB has an expense ratio of 0.34% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $31 per year of difference.
Which performed better, FSMB or VOO?
Over the past year FSMB returned +2.68% vs +21.79% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (8 years), FSMB annualized +1.55% vs +13.59% for VOO. Past performance does not guarantee future results.
Which is riskier, FSMB or VOO?
VOO has been the more volatile fund at 14.2% annualized versus 2.6% for FSMB. Worst drawdown: FSMB -6.3% vs VOO -34.3%.
Should I hold both FSMB and VOO?
FSMB and VOO have a monthly-return correlation of 0.52, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FSMB and VOO?
FSMB and VOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 835 unique securities.
Which pays a higher dividend, FSMB or VOO?
FSMB yields 3.18% while VOO yields 1.08%, so FSMB currently pays the higher dividend yield.
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