FSMB vs VTI
First Trust Short Duration Managed Municipal ETF vs Vanguard Morningstar Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. VTI delivered stronger 1-year returns. VTI offers more diversification with 3,543 holdings.
Side-by-Side Comparison
| Metric | FSMB | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.34% | 0.03% | |
| AUM | $632M | $666.9B | |
| Dividend Yield | 3.18% | 1.07% | |
| Holdings | 557 | 3,543 | |
| YTD Return | +1.21% | +12.65% | |
| 1Y Return | +2.39% | +21.39% | |
| 3Y Return (annualized) | +3.43% | +21.54% | |
| 5Y Return (annualized) | +1.39% | +12.11% | |
| Volatility (annualized) | 2.6% | 15.3% | |
| Max Drawdown | -6.3% | -56.6% | |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Nov 1, 2018 | May 24, 2001 |
FSMB vs VTI Performance
First Trust Short Duration Managed Municipal ETF (FSMB) is a ETF from First Trust Portfolios (US) and Vanguard Morningstar Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year FSMB returned +2.39% while VTI returned +21.39%. Year to date, FSMB is up 1.21% versus a gain of 12.65% for VTI.
Over three years, FSMB compounded at +3.43% per year against +21.54% for VTI; over five years the annualized figures are +1.39% and +12.11% respectively. Across the full 8-year window we track, VTI has the edge at +8.07% annualized vs +1.52%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTI has been the more volatile fund, with annualized monthly volatility of 15.3% 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 -56.6% for VTI. 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 0.54. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FSMB charges 0.34% per year while VTI 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 1.07% for VTI.
Holdings Overlap
FSMB and VTI share 0 holdings out of 3117 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 VTI?
FSMB has an expense ratio of 0.34% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $31 per year of difference.
Which performed better, FSMB or VTI?
Over the past year FSMB returned +2.39% vs +21.39% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (8 years), FSMB annualized +1.52% vs +8.07% for VTI. Past performance does not guarantee future results.
Which is riskier, FSMB or VTI?
VTI has been the more volatile fund at 15.3% annualized versus 2.6% for FSMB. Worst drawdown: FSMB -6.3% vs VTI -56.6%.
Should I hold both FSMB and VTI?
FSMB and VTI have a monthly-return correlation of 0.54, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FSMB and VTI?
FSMB and VTI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 3117 unique securities.
Which pays a higher dividend, FSMB or VTI?
FSMB yields 3.18% while VTI yields 1.07%, so FSMB currently pays the higher dividend yield.
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