HSMV vs VTI
First Trust Horizon Managed Volatility Small/Mid ETF vs Vanguard Morningstar Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. VTI delivered stronger 1-year returns. VTI offers more diversification with 3,543 holdings.
Side-by-Side Comparison
| Metric | HSMV | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.80% | 0.03% | |
| AUM | $41M | $666.9B | |
| Dividend Yield | 1.86% | 1.07% | |
| Holdings | 151 | 3,543 | |
| YTD Return | +9.80% | +13.14% | |
| 1Y Return | +9.04% | +22.35% | |
| 3Y Return (annualized) | +10.39% | +21.83% | |
| 5Y Return (annualized) | +5.02% | +12.01% | |
| Volatility (annualized) | 14.7% | 15.3% | |
| Max Drawdown | -19.2% | -56.6% | |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Apr 6, 2020 | May 24, 2001 |
HSMV vs VTI Performance
First Trust Horizon Managed Volatility Small/Mid ETF (HSMV) is a ETF from First Trust Portfolios (US) and Vanguard Morningstar Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year HSMV returned +9.04% while VTI returned +22.35%. Year to date, HSMV is up 9.80% versus a gain of 13.14% for VTI.
Over three years, HSMV compounded at +10.39% per year against +21.83% for VTI; over five years the annualized figures are +5.02% and +12.01% respectively. Across the full 6-year window we track, HSMV has the edge at +11.38% annualized vs +8.09%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTI has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 14.7% for HSMV. 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 -19.2% for HSMV and -56.6% for VTI. 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
HSMV charges 0.80% per year while VTI charges 0.03%. On a $10,000 position that is $80 vs $3 annually, a gap of $77 per year that compounds over a long holding period. On income, HSMV currently yields 1.86% against 1.07% for VTI.
Holdings Overlap
HSMV and VTI share 104 holdings out of 2833 unique holdings combined, representing a 0.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, HSMV or VTI?
HSMV has an expense ratio of 0.80% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $77 per year of difference.
Which performed better, HSMV or VTI?
Over the past year HSMV returned +9.04% vs +22.35% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (6 years), HSMV annualized +11.38% vs +8.09% for VTI. Past performance does not guarantee future results.
Which is riskier, HSMV or VTI?
VTI has been the more volatile fund at 15.3% annualized versus 14.7% for HSMV. Worst drawdown: HSMV -19.2% vs VTI -56.6%.
Should I hold both HSMV and VTI?
HSMV and VTI 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 HSMV and VTI?
HSMV and VTI share 104 common holdings with a 0.5% weight overlap. Combined, they hold 2833 unique securities.
Which pays a higher dividend, HSMV or VTI?
HSMV yields 1.86% while VTI yields 1.07%, so HSMV currently pays the higher dividend yield.
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