MFDX vs VOO

MFDX vs VOO

Which is better, MFDX or VOO?

Each has led over a different period.

VOO has a lower expense ratio. MFDX led over 1Y, VOO over 3Y, 5Y and the full window.

Lower Fees: VOOHigher Returns: split

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

MetricMFDXVOO
Expense Ratio0.39%0.03%Best
AUM$466M$997.4B
Dividend Yield2.84%1.04%
Holdings1,300509
YTD Return+10.84%+11.55%Best
1Y Return+17.99%Best+17.54%
3Y Return (annualized)+18.60%+20.71%Best
5Y Return (annualized)+10.32%+12.80%Best
Volatility (annualized)14.9%Best16.2%
Max Drawdown-39.1%-34.3%Best
$10,000 over 5 years$16,341$18,262Best
Fund FamilyPIMCO (US)Vanguard (US)
CategoryEquityEquity
StyleLarge Cap BlendLarge Cap Blend
InceptionAug 31, 2017Sep 7, 2010

Not shown on this pair: Top 10 Weight.

Volatility and max drawdown are measured over the window both funds cover: Sep 6, 2017 to Sep 10, 2026 (9 years).

MFDX 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 9 years both funds cover.

MFDX vs VOO Performance

PIMCO RAFI Dynamic Multi-Factor International Equity ETF (MFDX) is an ETF from PIMCO (US) and Vanguard S&P 500 ETF (VOO) is an ETF from Vanguard (US). Over the past year MFDX returned +17.99% while VOO returned +17.54%. Year to date, MFDX is up 10.84% versus a gain of 11.55% for VOO.

Over three years, MFDX compounded at +18.60% per year against +20.71% for VOO; over five years the annualized figures are +10.32% and +12.80% respectively. Across the full 9-year window we track, VOO has the edge at +14.25% annualized vs +7.96%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VOO has been the more volatile fund, with annualized monthly volatility of 16.2% compared with 14.9% for MFDX. 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 -39.1% for MFDX 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

MFDX charges 0.39% per year while VOO charges 0.03%. On a $10,000 position that is $39 vs $3 annually, a gap of $36 per year that compounds over a long holding period. On income, MFDX currently yields 2.84% against 1.04% for VOO.

Holdings Overlap

VOO already in MFDX0.2%

At least 0.2% of VOO's money is in holdings MFDX also owns.

Stated as a floor: for MFDX, our book for it covers 79.6% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.

We cannot see either book well enough to say how much of this pair is duplicated.

2 positions in common, counted across the 950 positions we hold weights for in MFDX and 505 in VOO, against full books of 1,300 and 509.

Top Shared Holdings

StockWeight in MFDXWeight in VOODifference
NXPINxp Semiconductors N.V. Common Stock0.28%0.11%0.17%
GRMNGarmin Ltd.0.14%0.06%0.08%

You are not choosing between two funds in isolation.

Whichever of MFDX and VOO you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.

MFDXVOO

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, MFDX or VOO?

MFDX has an expense ratio of 0.39% while VOO charges 0.03%. VOO is the cheaper option, by $36 a year on a $10,000 investment.

Which performed better, MFDX or VOO?

Over the past year MFDX returned +17.99% vs +17.54% for VOO, so MFDX leads on 1-year performance. Over the longest common window we track (9 years), MFDX annualized +7.96% vs +14.25% for VOO. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, MFDX or VOO?

VOO has been the more volatile fund at 16.2% annualized versus 14.9% for MFDX. Worst drawdown: MFDX -39.1% vs VOO -34.3%.

Should I hold both MFDX and VOO?

MFDX 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.

Which pays a higher dividend, MFDX or VOO?

MFDX yields 2.84% while VOO yields 1.04%, so MFDX currently pays the higher dividend yield.

Is VOO better than MFDX?

VOO has a lower expense ratio. MFDX led over 1Y, VOO over 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.