FXO vs VOO
First Trust Financials AlphaDEX 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 | FXO | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.60% | 0.03% | |
| AUM | $1.1B | $979.0B | |
| Dividend Yield | 2.21% | 1.09% | |
| Holdings | 106 | 509 | |
| YTD Return | +10.24% | +13.44% | |
| 1Y Return | +19.21% | +22.62% | |
| 3Y Return (annualized) | +20.87% | +21.47% | |
| 5Y Return (annualized) | +10.41% | +13.27% | |
| Volatility (annualized) | 21.4% | 14.1% | |
| Max Drawdown | -72.2% | -34.3% | |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | May 8, 2007 | Sep 7, 2010 |
FXO vs VOO Performance
First Trust Financials AlphaDEX Fund (FXO) 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 FXO returned +19.21% while VOO returned +22.62%. Year to date, FXO is up 10.24% versus a gain of 13.44% for VOO.
Over three years, FXO compounded at +20.87% per year against +21.47% for VOO; over five years the annualized figures are +10.41% and +13.27% respectively. Across the full 16-year window we track, VOO has the edge at +13.55% annualized vs +7.12%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FXO has been the more volatile fund, with annualized monthly volatility of 21.4% 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 -72.2% for FXO 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 0.81. 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 2.21% against 1.09% for VOO.
Holdings Overlap
FXO and VOO share 41 holdings out of 568 unique holdings combined, representing a 5.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
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. On a $10,000 investment, that is $57 per year of difference.
Which performed better, FXO or VOO?
Over the past year FXO returned +19.21% vs +22.62% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (16 years), FXO annualized +7.12% vs +13.55% for VOO. Past performance does not guarantee future results.
Which is riskier, FXO or VOO?
FXO has been the more volatile fund at 21.4% annualized versus 14.1% for VOO. Worst drawdown: FXO -72.2% vs VOO -34.3%.
Should I hold both FXO and VOO?
FXO and VOO have a monthly-return correlation of 0.81, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FXO and VOO?
FXO and VOO share 41 common holdings with a 5.4% weight overlap. Combined, they hold 568 unique securities.
Which pays a higher dividend, FXO or VOO?
FXO yields 2.21% while VOO yields 1.09%, so FXO currently pays the higher dividend yield.
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