FTDS vs VOO

Quick Verdict

VOO has a lower expense ratio. FTDS delivered stronger 1-year returns. VOO offers more diversification with 505 holdings.

Lower Fees: VOOHigher Returns: FTDSMore Diversified: VOO

Side-by-Side Comparison

MetricFTDSVOOWinner
Expense Ratio0.70%0.03%
AUM$38M$979.0B
Dividend Yield1.67%1.09%
Holdings51509
YTD Return+15.39%+13.80%
1Y Return+25.24%+23.71%
3Y Return (annualized)+15.93%+21.50%
5Y Return (annualized)+8.08%+13.44%
Volatility (annualized)17.5%14.1%
Max Drawdown-54.7%-34.3%
Fund FamilyFirst Trust Portfolios (US)Vanguard (US)
CategoryEquityEquity
InceptionDec 5, 2006Sep 7, 2010

FTDS vs VOO Performance

First Trust Dividend Strength ETF (FTDS) 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 FTDS returned +25.24% while VOO returned +23.71%. Year to date, FTDS is up 15.39% versus a gain of 13.80% for VOO.

Over three years, FTDS compounded at +15.93% per year against +21.50% for VOO; over five years the annualized figures are +8.08% and +13.44% respectively. Across the full 16-year window we track, VOO has the edge at +13.58% annualized vs +6.77%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

FTDS has been the more volatile fund, with annualized monthly volatility of 17.5% 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 -54.7% for FTDS 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 0.86. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

FTDS charges 0.70% per year while VOO charges 0.03%. On a $10,000 position that is $70 vs $3 annually, a gap of $67 per year that compounds over a long holding period. On income, FTDS currently yields 1.67% against 1.09% for VOO.

Holdings Overlap

3.2%overlap

FTDS and VOO share 36 holdings out of 519 unique holdings combined, representing a 3.2% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in FTDSWeight in VOODifference
JNJ2.22%0.95%1.27%
MRK2.09%0.49%1.60%
PSX2.37%0.11%2.26%
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Frequently Asked Questions

Which is cheaper, FTDS or VOO?

FTDS has an expense ratio of 0.70% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $67 per year of difference.

Which performed better, FTDS or VOO?

Over the past year FTDS returned +25.24% vs +23.71% for VOO, so FTDS leads on 1-year performance. Over the longest common window we track (16 years), FTDS annualized +6.77% vs +13.58% for VOO. Past performance does not guarantee future results.

Which is riskier, FTDS or VOO?

FTDS has been the more volatile fund at 17.5% annualized versus 14.1% for VOO. Worst drawdown: FTDS -54.7% vs VOO -34.3%.

Should I hold both FTDS and VOO?

FTDS and VOO have a monthly-return correlation of 0.86, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between FTDS and VOO?

FTDS and VOO share 36 common holdings with a 3.2% weight overlap. Combined, they hold 519 unique securities.

Which pays a higher dividend, FTDS or VOO?

FTDS yields 1.67% while VOO yields 1.09%, so FTDS currently pays the higher dividend yield.

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