FTSL vs VOO

Quick Verdict

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

Lower Fees: VOOHigher Returns: VOOMore Diversified: VOO

Side-by-Side Comparison

MetricFTSLVOOWinner
Expense Ratio0.70%0.03%
AUM$2.3B$979.0B
Dividend Yield6.48%1.09%
Holdings292509
YTD Return+1.43%+13.80%
1Y Return+3.47%+23.71%
3Y Return (annualized)+6.59%+21.50%
5Y Return (annualized)+5.08%+13.44%
Volatility (annualized)4.9%14.1%
Max Drawdown-26.4%-34.3%
Fund FamilyFirst Trust Portfolios (US)Vanguard (US)
CategoryFixed IncomeEquity
InceptionMay 1, 2013Sep 7, 2010

FTSL vs VOO Performance

First Trust Senior Loan Fund ETF (FTSL) 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 FTSL returned +3.47% while VOO returned +23.71%. Year to date, FTSL is up 1.43% versus a gain of 13.80% for VOO.

Over three years, FTSL compounded at +6.59% per year against +21.50% for VOO; over five years the annualized figures are +5.08% and +13.44% respectively. Across the full 13-year window we track, VOO has the edge at +13.58% annualized vs +1.65%. 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 4.9% for FTSL. 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 -26.4% for FTSL 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 0.65. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

FTSL 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, FTSL currently yields 6.48% against 1.09% for VOO.

Holdings Overlap

0.0%overlap

FTSL and VOO share 0 holdings out of 551 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, FTSL or VOO?

FTSL 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, FTSL or VOO?

Over the past year FTSL returned +3.47% vs +23.71% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (13 years), FTSL annualized +1.65% vs +13.58% for VOO. Past performance does not guarantee future results.

Which is riskier, FTSL or VOO?

VOO has been the more volatile fund at 14.1% annualized versus 4.9% for FTSL. Worst drawdown: FTSL -26.4% vs VOO -34.3%.

Should I hold both FTSL and VOO?

FTSL and VOO have a monthly-return correlation of 0.65, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between FTSL and VOO?

FTSL and VOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 551 unique securities.

Which pays a higher dividend, FTSL or VOO?

FTSL yields 6.48% while VOO yields 1.09%, so FTSL currently pays the higher dividend yield.

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