FXO vs VOO

FXO vs VOO

Which is better, FXO or VOO?

Mid Cap Value against Large Cap Blend.

VOO has a lower expense ratio. FXO led over 3Y, VOO over 1Y, 5Y and the full window. FXO is less concentrated, with 18.1% of the fund in its ten largest positions against 36.4%.

Lower Fees: VOOHigher Returns: splitLess Concentrated: FXO

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

MetricFXOVOO
Expense Ratio0.60%0.03%Best
AUM$1.1B$997.4B
Dividend Yield1.99%1.08%
Holdings210509
YTD Return+11.71%+13.81%Best
1Y Return+15.99%+21.53%Best
3Y Return (annualized)+22.13%Best+21.46%
5Y Return (annualized)+10.78%+12.87%Best
Volatility (annualized)18.9%14.1%Best
Max Drawdown-48.5%-34.3%Best
$10,000 over 5 years$16,684$18,319Best
Top 10 Weight18.1%Best36.4%
Fund FamilyFirst Trust Portfolios (US)Vanguard (US)
CategoryEquityEquity
StyleMid Cap ValueLarge Cap Blend
InceptionMay 8, 2007Sep 7, 2010

Volatility and max drawdown are measured over the window both funds cover: Sep 9, 2010 to Sep 3, 2026 (16 years).

FXO 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 16 years both funds cover.

FXO vs VOO Performance

First Trust Financials AlphaDEX Fund (FXO) 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 FXO returned +15.99% while VOO returned +21.53%. Year to date, FXO is up 11.71% versus a gain of 13.81% for VOO.

Over three years, FXO compounded at +22.13% per year against +21.46% for VOO; over five years the annualized figures are +10.78% and +12.87% respectively. Across the full 16-year window we track, VOO has the edge at +13.51% annualized vs +11.64%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

FXO has been the more volatile fund, with annualized monthly volatility of 18.9% 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 -48.5% for FXO 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 0.81. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

FXO charges 0.60% per year while VOO charges 0.03%. On a $10,000 position that is $60 vs $3 annually, a gap of $57 per year that compounds over a long holding period. On income, FXO currently yields 1.99% against 1.08% for VOO.

Holdings Overlap

FXO already in VOO38.1%
VOO already in FXO5.4%

38.1% of FXO's money is in holdings VOO also owns. 5.4% of VOO's money is in holdings FXO also owns.

The two portfolios partly overlap.

41 positions in common, counted across the 104 positions we hold weights for in FXO and 505 in VOO, against full books of 210 and 509.

What only one of them owns

Our book lists 456 positions for VOO that do not appear in our book for FXO (94.1% of the fund), and 59 for FXO that do not appear in VOO (56.2%).

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 FXOWeight in VOODifference
BRK.BBerkshire Hathaway Inc Brk/B Us Equity1.61%1.42%0.19%
TRVThe Travelers Cos, Inc.1.80%0.11%1.69%
FDSFactset Research Systems Inc.1.87%0.01%1.86%
ALLAllstate Corp.1.72%0.09%1.63%
HIGHartford Financial Services Group Inc.1.68%0.06%1.62%
AIGAmerican International Gr1.67%0.06%1.61%
EGEverest Group, Ltd.1.62%0.02%1.60%
IBKRInteractive Brokers Group Inc1.58%0.06%1.52%
TROWT Rowe Price Grp1.57%0.04%1.53%
CINFCincinnati Financial Corp.1.49%0.04%1.45%

38.1% of FXO 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.

FXOVOO

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Frequently Asked Questions

Which is cheaper, FXO or VOO?

FXO has an expense ratio of 0.60% while VOO charges 0.03%. VOO is the cheaper option, by $57 a year on a $10,000 investment.

Which performed better, FXO or VOO?

Over the past year FXO returned +15.99% vs +21.53% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (16 years), FXO annualized +11.64% vs +13.51% for VOO. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, FXO or VOO?

FXO has been the more volatile fund at 18.9% annualized versus 14.1% for VOO. Worst drawdown: FXO -48.5% vs VOO -34.3%.

Should I hold both FXO and VOO?

FXO and VOO have a monthly-return correlation of 0.81, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.

What is the holdings overlap between FXO and VOO?

38.1% of FXO's money is in holdings VOO also owns. 5.4% of VOO's is in holdings FXO also owns. They hold 41 positions in common, counted across the 104 positions we hold weights for in FXO and 505 in VOO.

Which pays a higher dividend, FXO or VOO?

FXO yields 1.99% while VOO yields 1.08%, so FXO currently pays the higher dividend yield.

Is VOO better than FXO?

VOO has a lower expense ratio. FXO led over 3Y, VOO over 1Y, 5Y and the full window. FXO is less concentrated, with 18.1% 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.