FMY vs VOO
FMY vs VOO
First Trust Mortgage Income 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 | FMY | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 1.35% | 0.03% | |
| AUM | $52M | $979.0B | |
| Dividend Yield | 6.29% | 1.09% | |
| Holdings | 166 | 509 | |
| YTD Return | -1.39% | +11.51% | |
| 1Y Return | -0.57% | +21.46% | |
| 3Y Return (annualized) | +7.97% | +20.86% | |
| 5Y Return (annualized) | +2.70% | +13.01% | |
| Volatility (annualized) | 8.9% | 14.1% | |
| Max Drawdown | -47.3% | -34.3% | |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | May 25, 2005 | Sep 7, 2010 |
FMY vs VOO Performance
First Trust Mortgage Income Fund (FMY) 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 FMY returned -0.57% while VOO returned +21.46%. Year to date, FMY is down 1.39% versus a gain of 11.51% for VOO.
Over three years, FMY compounded at +7.97% per year against +20.86% for VOO; over five years the annualized figures are +2.70% and +13.01% respectively. Across the full 16-year window we track, VOO has the edge at +13.44% annualized vs -0.96%. 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 8.9% for FMY. 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 -47.3% for FMY 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 0.44. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FMY charges 1.35% per year while VOO charges 0.03%. On a $10,000 position that is $135 vs $3 annually, a gap of $132 per year that compounds over a long holding period. On income, FMY currently yields 6.29% against 1.09% for VOO.
Holdings Overlap
FMY and VOO share 0 holdings out of 534 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, FMY or VOO?
FMY has an expense ratio of 1.35% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $132 per year of difference.
Which performed better, FMY or VOO?
Over the past year FMY returned -0.57% vs +21.46% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (16 years), FMY annualized -0.96% vs +13.44% for VOO. Past performance does not guarantee future results.
Which is riskier, FMY or VOO?
VOO has been the more volatile fund at 14.1% annualized versus 8.9% for FMY. Worst drawdown: FMY -47.3% vs VOO -34.3%.
Should I hold both FMY and VOO?
FMY and VOO have a monthly-return correlation of 0.44, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FMY and VOO?
FMY and VOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 534 unique securities.
Which pays a higher dividend, FMY or VOO?
FMY yields 6.29% while VOO yields 1.09%, so FMY currently pays the higher dividend yield.
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