FXZ vs VOO
First Trust Materials AlphaDEX Fund vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. FXZ delivered stronger 1-year returns. VOO offers more diversification with 509 holdings.
Side-by-Side Comparison
| Metric | FXZ | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.64% | 0.03% | |
| AUM | $390M | $997.4B | |
| Dividend Yield | 1.42% | 1.08% | |
| Holdings | 40 | 509 | |
| YTD Return | +28.59% | +13.20% | |
| 1Y Return | +46.33% | +21.62% | |
| 3Y Return (annualized) | +11.12% | +22.16% | |
| 5Y Return (annualized) | +10.60% | +13.42% | |
| Volatility (annualized) | 24.6% | 14.1% | |
| Max Drawdown | -66.0% | -34.3% | |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | May 8, 2007 | Sep 7, 2010 |
FXZ vs VOO Performance
First Trust Materials AlphaDEX Fund (FXZ) 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 FXZ returned +46.33% while VOO returned +21.62%. Year to date, FXZ is up 28.59% versus a gain of 13.20% for VOO.
Over three years, FXZ compounded at +11.12% per year against +22.16% for VOO; over five years the annualized figures are +10.60% and +13.42% respectively. Across the full 16-year window we track, VOO has the edge at +13.51% annualized vs +8.32%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FXZ has been the more volatile fund, with annualized monthly volatility of 24.6% 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 -66.0% for FXZ 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 0.79. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FXZ charges 0.64% per year while VOO charges 0.03%. On a $10,000 position that is $64 vs $3 annually, a gap of $61 per year that compounds over a long holding period. On income, FXZ currently yields 1.42% against 1.08% for VOO.
Holdings Overlap
FXZ and VOO share 15 holdings out of 529 unique holdings combined, representing a 1.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FXZ or VOO?
FXZ has an expense ratio of 0.64% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $61 per year of difference.
Which performed better, FXZ or VOO?
Over the past year FXZ returned +46.33% vs +21.62% for VOO, so FXZ leads on 1-year performance. Over the longest common window we track (16 years), FXZ annualized +8.32% vs +13.51% for VOO. Past performance does not guarantee future results.
Which is riskier, FXZ or VOO?
FXZ has been the more volatile fund at 24.6% annualized versus 14.1% for VOO. Worst drawdown: FXZ -66.0% vs VOO -34.3%.
Should I hold both FXZ and VOO?
FXZ and VOO have a monthly-return correlation of 0.79, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FXZ and VOO?
FXZ and VOO share 15 common holdings with a 1.3% weight overlap. Combined, they hold 529 unique securities.
Which pays a higher dividend, FXZ or VOO?
FXZ yields 1.42% while VOO yields 1.08%, so FXZ currently pays the higher dividend yield.
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