OCTM vs VOO

OCTM vs VOO
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Quick Verdict

VOO has a lower expense ratio. VOO delivered stronger 1-year returns. VOO offers more diversification with 509 holdings.

Lower Fees: VOOHigher Returns: VOOMore Diversified: VOO

Side-by-Side Comparison

MetricOCTMVOOWinner
Expense Ratio0.85%0.03%
AUM$31M$997.4B
Dividend Yield0.00%1.08%
Holdings5509
YTD Return+4.17%+12.76%
1Y Return+6.64%+20.14%
3Y Return (annualized)-+21.69%
5Y Return (annualized)-+13.00%
Volatility (annualized)2.8%14.1%
Max Drawdown-3.3%-34.3%
Fund FamilyFirst Trust Portfolios (US)Vanguard (US)
CategoryAlternativeEquity
InceptionOct 18, 2024Sep 7, 2010

OCTM vs VOO Performance

FT Vest US Equity Max Buffer ETF - October (OCTM) 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 OCTM returned +6.64% while VOO returned +20.14%. Year to date, OCTM is up 4.17% versus a gain of 12.76% for VOO.

Risk: Volatility and Drawdowns

VOO has been the more volatile fund, with annualized monthly volatility of 14.1% compared with 2.8% for OCTM. 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 -3.3% for OCTM 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 0.96. They move almost in lockstep, so holding both mostly duplicates the same exposure.

Fees and Cost Over Time

OCTM charges 0.85% per year while VOO charges 0.03%. On a $10,000 position that is $85 vs $3 annually, a gap of $82 per year that compounds over a long holding period. On income, OCTM currently yields 0.00% against 1.08% for VOO.

Holdings Overlap

0.0%overlap

OCTM and VOO share 0 holdings out of 506 unique holdings combined, representing a 0.0% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Frequently Asked Questions

Which is cheaper, OCTM or VOO?

OCTM has an expense ratio of 0.85% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $82 per year of difference.

Which performed better, OCTM or VOO?

Over the past year OCTM returned +6.64% vs +20.14% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (2 years), OCTM annualized +6.29% vs +13.47% for VOO. Past performance does not guarantee future results.

Which is riskier, OCTM or VOO?

VOO has been the more volatile fund at 14.1% annualized versus 2.8% for OCTM. Worst drawdown: OCTM -3.3% vs VOO -34.3%.

Should I hold both OCTM and VOO?

OCTM and VOO have a monthly-return correlation of 0.96, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.

What is the holdings overlap between OCTM and VOO?

OCTM and VOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 506 unique securities.

Which pays a higher dividend, OCTM or VOO?

OCTM yields 0.00% while VOO yields 1.08%, so VOO currently pays the higher dividend yield.

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