FTSM vs VOO

Quick Verdict

VOO has a lower expense ratio. VOO delivered stronger 1-year returns. VOO offers more diversification with 505 holdings.

Lower Fees: VOOHigher Returns: VOOMore Diversified: VOO

Side-by-Side Comparison

MetricFTSMVOOWinner
Expense Ratio0.29%0.03%
AUM$6.5B$979.0B
Dividend Yield4.14%1.09%
Holdings634509
YTD Return+1.68%+11.51%
1Y Return+3.52%+21.46%
3Y Return (annualized)+4.66%+20.86%
5Y Return (annualized)+3.51%+13.01%
Volatility (annualized)1.2%14.1%
Max Drawdown-5.4%-34.3%
Fund FamilyFirst Trust Portfolios (US)Vanguard (US)
CategoryFixed IncomeEquity
InceptionAug 5, 2014Sep 7, 2010

FTSM vs VOO Performance

First Trust Enhanced Short Maturity ETF (FTSM) 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 FTSM returned +3.52% while VOO returned +21.46%. Year to date, FTSM is up 1.68% versus a gain of 11.51% for VOO.

Over three years, FTSM compounded at +4.66% per year against +20.86% for VOO; over five years the annualized figures are +3.51% and +13.01% respectively. Across the full 12-year window we track, VOO has the edge at +13.44% annualized vs +1.45%. 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 1.2% for FTSM. 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 -5.4% for FTSM 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 0.26. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

FTSM charges 0.29% per year while VOO charges 0.03%. On a $10,000 position that is $29 vs $3 annually, a gap of $26 per year that compounds over a long holding period. On income, FTSM currently yields 4.14% against 1.09% for VOO.

Holdings Overlap

0.0%overlap

FTSM and VOO share 0 holdings out of 896 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, FTSM or VOO?

FTSM has an expense ratio of 0.29% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $26 per year of difference.

Which performed better, FTSM or VOO?

Over the past year FTSM returned +3.52% vs +21.46% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (12 years), FTSM annualized +1.45% vs +13.44% for VOO. Past performance does not guarantee future results.

Which is riskier, FTSM or VOO?

VOO has been the more volatile fund at 14.1% annualized versus 1.2% for FTSM. Worst drawdown: FTSM -5.4% vs VOO -34.3%.

Should I hold both FTSM and VOO?

FTSM and VOO have a monthly-return correlation of 0.26, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between FTSM and VOO?

FTSM and VOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 896 unique securities.

Which pays a higher dividend, FTSM or VOO?

FTSM yields 4.14% while VOO yields 1.09%, so FTSM currently pays the higher dividend yield.

Get Full ETF Analytics

Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.

See inside every ETF you own
$29/moCancel anytime.
Try FundXLS →