FTHY vs VOO
FTHY vs VOO
First Trust High Yield Opportunities 2027 Term 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 | FTHY | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 3.59% | 0.03% | |
| AUM | $662M | $979.0B | |
| Dividend Yield | 10.63% | 1.09% | |
| Holdings | 294 | 509 | |
| YTD Return | +2.21% | +13.80% | |
| 1Y Return | +2.32% | +23.71% | |
| 3Y Return (annualized) | +10.46% | +21.50% | |
| 5Y Return (annualized) | +2.28% | +13.44% | |
| Volatility (annualized) | 11.9% | 14.1% | |
| Max Drawdown | -31.2% | -34.3% | |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jun 25, 2020 | Sep 7, 2010 |
FTHY vs VOO Performance
First Trust High Yield Opportunities 2027 Term Fund (FTHY) 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 FTHY returned +2.32% while VOO returned +23.71%. Year to date, FTHY is up 2.21% versus a gain of 13.80% for VOO.
Over three years, FTHY compounded at +10.46% per year against +21.50% for VOO; over five years the annualized figures are +2.28% and +13.44% respectively. Across the full 6-year window we track, VOO has the edge at +13.58% annualized vs +2.71%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VOO has been the more volatile fund, with annualized monthly volatility of 14.1% compared with 11.9% for FTHY. 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 -31.2% for FTHY 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 0.76. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FTHY charges 3.59% per year while VOO charges 0.03%. On a $10,000 position that is $359 vs $3 annually, a gap of $356 per year that compounds over a long holding period. On income, FTHY currently yields 10.63% against 1.09% for VOO.
Holdings Overlap
FTHY and VOO share 0 holdings out of 735 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, FTHY or VOO?
FTHY has an expense ratio of 3.59% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $356 per year of difference.
Which performed better, FTHY or VOO?
Over the past year FTHY returned +2.32% vs +23.71% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (6 years), FTHY annualized +2.71% vs +13.58% for VOO. Past performance does not guarantee future results.
Which is riskier, FTHY or VOO?
VOO has been the more volatile fund at 14.1% annualized versus 11.9% for FTHY. Worst drawdown: FTHY -31.2% vs VOO -34.3%.
Should I hold both FTHY and VOO?
FTHY and VOO have a monthly-return correlation of 0.76, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FTHY and VOO?
FTHY and VOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 735 unique securities.
Which pays a higher dividend, FTHY or VOO?
FTHY yields 10.63% while VOO yields 1.09%, so FTHY currently pays the higher dividend yield.
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