FTLS vs VOO

FTLS vs VOO

Which is better, FTLS or VOO?

Multi Alternative against Large Cap Blend.

VOO has a lower expense ratio. VOO led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.90. FTLS is less concentrated, with 28.7% of the fund in its ten largest positions against 36.4%.

Lower Fees: VOOHigher Returns: VOOLess Concentrated: FTLS

MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.

Side-by-Side Comparison

MetricFTLSVOO
Expense Ratio1.38%0.03%Best
AUM$2.5B$997.4B
Dividend Yield0.88%1.08%
Holdings363509
YTD Return+8.87%+13.81%Best
1Y Return+14.85%+21.53%Best
3Y Return (annualized)+14.30%+21.46%Best
5Y Return (annualized)+10.20%+12.87%Best
Volatility (annualized)8.7%Best14.9%
Max Drawdown-20.5%Best-34.3%
$10,000 over 5 years$16,252$18,319Best
Top 10 Weight28.7%Best36.4%
Fund FamilyFirst Trust Portfolios (US)Vanguard (US)
CategoryAlternativeEquity
StyleMulti AlternativeLarge Cap Blend
InceptionSep 8, 2014Sep 7, 2010

Volatility and max drawdown are measured over the window both funds cover: Sep 9, 2014 to Sep 3, 2026 (12 years).

FTLS vs VOO growth

Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 12 years both funds cover.

FTLS vs VOO Performance

First Trust Long/Short Equity ETF (FTLS) is an ETF from First Trust Portfolios (US) and Vanguard S&P 500 ETF (VOO) is an ETF from Vanguard (US). Over the past year FTLS returned +14.85% while VOO returned +21.53%. Year to date, FTLS is up 8.87% versus a gain of 13.81% for VOO.

Over three years, FTLS compounded at +14.30% per year against +21.46% for VOO; over five years the annualized figures are +10.20% and +12.87% respectively. Across the full 12-year window we track, VOO has the edge at +12.73% annualized vs +8.71%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VOO has been the more volatile fund, with annualized monthly volatility of 14.9% compared with 8.7% for FTLS. 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 -20.5% for FTLS and -34.3% for VOO. Drawdown depth is what each fund did in the worst stretch of the window measured above.

The two funds' monthly returns correlate at 0.90. They move almost in lockstep, so holding both mostly duplicates the same exposure.

Fees and Cost Over Time

FTLS charges 1.38% per year while VOO charges 0.03%. On a $10,000 position that is $138 vs $3 annually, a gap of $135 per year that compounds over a long holding period. On income, FTLS currently yields 0.88% against 1.08% for VOO.

Holdings Overlap

FTLS already in VOO74.6%
VOO already in FTLS50.7%

74.6% of FTLS's money is in holdings VOO also owns. 50.7% of VOO's money is in holdings FTLS also owns.

Most of FTLS is already inside VOO. Owning both mostly buys the same companies twice.

142 positions in common, counted across the 351 positions we hold weights for in FTLS and 505 in VOO, against full books of 363 and 509.

What only one of them owns

Our book lists 355 positions for VOO that do not appear in our book for FTLS (48.8% of the fund), and 52 for FTLS that do not appear in VOO (8.7%).

Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.

Top Shared Holdings

StockWeight in FTLSWeight in VOODifference
AAPLApple, Inc7.00%6.59%0.41%
NVDANvidia Corp.3.40%7.51%4.11%
MSFTMicrosoft Corp 4.100 Feb 06 373.84%4.30%0.46%
GOOGLAlphabet Inc.Class A2.23%3.25%1.02%
AMZNAmazon.Com Inc1.63%3.62%1.99%
AVGOBroadcom Inc1.28%2.77%1.49%
METAMeta Platform Inc 1.42%1.92%0.50%
MAMastercard Inc2.33%0.64%1.69%
CSCOCisco Systems Inc. - Ordinary Shares2.04%0.72%1.32%
BRK.BBerkshire Hathaway Inc Brk/B Us Equity1.01%1.42%0.41%

74.6% of FTLS is already inside VOO.

You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.

FTLSVOO

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Frequently Asked Questions

Which is cheaper, FTLS or VOO?

FTLS has an expense ratio of 1.38% while VOO charges 0.03%. VOO is the cheaper option, by $135 a year on a $10,000 investment.

Which performed better, FTLS or VOO?

Over the past year FTLS returned +14.85% vs +21.53% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (12 years), FTLS annualized +8.71% vs +12.73% for VOO. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, FTLS or VOO?

VOO has been the more volatile fund at 14.9% annualized versus 8.7% for FTLS. Worst drawdown: FTLS -20.5% vs VOO -34.3%.

Should I hold both FTLS and VOO?

FTLS and VOO have a monthly-return correlation of 0.90, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.

What is the holdings overlap between FTLS and VOO?

74.6% of FTLS's money is in holdings VOO also owns. 50.7% of VOO's is in holdings FTLS also owns. They hold 142 positions in common, counted across the 351 positions we hold weights for in FTLS and 505 in VOO.

Which pays a higher dividend, FTLS or VOO?

FTLS yields 0.88% while VOO yields 1.08%, so VOO currently pays the higher dividend yield.

Is VOO better than FTLS?

VOO has a lower expense ratio. VOO led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.90. FTLS is less concentrated, with 28.7% of the fund in its ten largest positions against 36.4%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.