FMY vs VTI
FMY vs VTI
First Trust Mortgage Income Fund vs Vanguard Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. VTI delivered stronger 1-year returns. VTI offers more diversification with 2783 holdings.
Side-by-Side Comparison
| Metric | FMY | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 1.35% | 0.03% | |
| AUM | $52M | $663.5B | |
| Dividend Yield | 6.29% | 1.07% | |
| Holdings | 166 | 3,543 | |
| YTD Return | -0.30% | +10.14% | |
| 1Y Return | +1.19% | +19.82% | |
| 3Y Return (annualized) | +8.05% | +18.94% | |
| 5Y Return (annualized) | +2.91% | +11.79% | |
| Volatility (annualized) | 8.9% | 15.4% | |
| Max Drawdown | -47.3% | -56.6% | |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | May 25, 2005 | May 24, 2001 |
FMY vs VTI Performance
First Trust Mortgage Income Fund (FMY) is a ETF from First Trust Portfolios (US) and Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year FMY returned +1.19% while VTI returned +19.82%. Year to date, FMY is down 0.30% versus a gain of 10.14% for VTI.
Over three years, FMY compounded at +8.05% per year against +18.94% for VTI; over five years the annualized figures are +2.91% and +11.79% respectively. Across the full 21-year window we track, VTI has the edge at +7.99% annualized vs -0.90%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTI has been the more volatile fund, with annualized monthly volatility of 15.4% 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 -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 0.43. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FMY charges 1.35% per year while VTI 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 1.07% for VTI.
Holdings Overlap
FMY and VTI share 0 holdings out of 2812 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 VTI?
FMY has an expense ratio of 1.35% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $132 per year of difference.
Which performed better, FMY or VTI?
Over the past year FMY returned +1.19% vs +19.82% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (21 years), FMY annualized -0.90% vs +7.99% for VTI. Past performance does not guarantee future results.
Which is riskier, FMY or VTI?
VTI has been the more volatile fund at 15.4% annualized versus 8.9% for FMY. Worst drawdown: FMY -47.3% vs VTI -56.6%.
Should I hold both FMY and VTI?
FMY and VTI have a monthly-return correlation of 0.43, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FMY and VTI?
FMY and VTI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2812 unique securities.
Which pays a higher dividend, FMY or VTI?
FMY yields 6.29% while VTI yields 1.07%, so FMY currently pays the higher dividend yield.
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