MDIV vs VOO
First Trust Multi-Asset Diversified Income Index 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 | MDIV | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.71% | 0.03% | |
| AUM | $428M | $979.0B | |
| Dividend Yield | 6.13% | 1.09% | |
| Holdings | 125 | 509 | |
| YTD Return | +10.64% | +13.79% | |
| 1Y Return | +12.01% | +23.01% | |
| 3Y Return (annualized) | +10.38% | +21.78% | |
| 5Y Return (annualized) | +6.79% | +13.39% | |
| Volatility (annualized) | 13.6% | 14.1% | |
| Max Drawdown | -57.0% | -34.3% | |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) | |
| Category | Allocation/Balanced | Equity | |
| Inception | Aug 13, 2012 | Sep 7, 2010 |
MDIV vs VOO Performance
First Trust Multi-Asset Diversified Income Index Fund (MDIV) 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 MDIV returned +12.01% while VOO returned +23.01%. Year to date, MDIV is up 10.64% versus a gain of 13.79% for VOO.
Over three years, MDIV compounded at +10.38% per year against +21.78% for VOO; over five years the annualized figures are +6.79% and +13.39% respectively. Across the full 14-year window we track, VOO has the edge at +13.57% annualized vs +1.13%. 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 13.6% for MDIV. 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 -57.0% for MDIV 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 0.76. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
MDIV charges 0.71% per year while VOO charges 0.03%. On a $10,000 position that is $71 vs $3 annually, a gap of $68 per year that compounds over a long holding period. On income, MDIV currently yields 6.13% against 1.09% for VOO.
Holdings Overlap
MDIV and VOO share 30 holdings out of 592 unique holdings combined, representing a 2.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, MDIV or VOO?
MDIV has an expense ratio of 0.71% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $68 per year of difference.
Which performed better, MDIV or VOO?
Over the past year MDIV returned +12.01% vs +23.01% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (14 years), MDIV annualized +1.13% vs +13.57% for VOO. Past performance does not guarantee future results.
Which is riskier, MDIV or VOO?
VOO has been the more volatile fund at 14.1% annualized versus 13.6% for MDIV. Worst drawdown: MDIV -57.0% vs VOO -34.3%.
Should I hold both MDIV and VOO?
MDIV and VOO have a monthly-return correlation of 0.76, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MDIV and VOO?
MDIV and VOO share 30 common holdings with a 2.3% weight overlap. Combined, they hold 592 unique securities.
Which pays a higher dividend, MDIV or VOO?
MDIV yields 6.13% while VOO yields 1.09%, so MDIV currently pays the higher dividend yield.
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