FAB vs VTI
First Trust Multi Cap Value AlphaDEX Fund vs Vanguard Morningstar Total Stock Market ETF
Which is better, FAB or VTI?
Mid Cap Value against Large Cap Blend.
VTI has a lower expense ratio. FAB led over 1Y, VTI over 3Y, 5Y and the full window. FAB is less concentrated, with 5.8% of the fund in its ten largest positions against 33.5%.
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
| Metric | FAB | VTI |
|---|---|---|
| Expense Ratio | 0.66% | 0.03%Best |
| AUM | $157M | $689.2B |
| Dividend Yield | 1.79% | 1.06% |
| Holdings | 1,350 | 3,524 |
| YTD Return | +13.90%Best | +13.02% |
| 1Y Return | +19.39%Best | +16.63% |
| 3Y Return (annualized) | +15.67% | +21.97%Best |
| 5Y Return (annualized) | +8.81% | +11.99%Best |
| Volatility (annualized) | 20.6% | 16.0%Best |
| Max Drawdown | -64.3% | -56.6%Best |
| $10,000 over 5 years | $15,253 | $17,616Best |
| Top 10 Weight | 5.8%Best | 33.5% |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Mid Cap Value | Large Cap Blend |
| Inception | May 8, 2007 | May 24, 2001 |
Volatility and max drawdown are measured over the window both funds cover: May 11, 2007 to Oct 14, 2026 (19.4 years).
FAB vs VTI 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 19.4 years both funds cover.
FAB vs VTI Performance
First Trust Multi Cap Value AlphaDEX Fund (FAB) is an ETF from First Trust Portfolios (US) and Vanguard Morningstar Total Stock Market ETF (VTI) is an ETF from Vanguard (US). Over the past year FAB returned +19.39% while VTI returned +16.63%. Year to date, FAB is up 13.90% versus a gain of 13.02% for VTI.
Over three years, FAB compounded at +15.67% per year against +21.97% for VTI; over five years the annualized figures are +8.81% and +11.99% respectively. Across the full 19-year window we track, VTI has the edge at +9.12% annualized vs +7.02%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FAB has been the more volatile fund, with annualized monthly volatility of 20.6% compared with 16.0% for VTI. 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 -64.3% for FAB and -56.6% for VTI. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.89. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FAB charges 0.66% per year while VTI charges 0.03%. On a $10,000 position that is $66 vs $3 annually, a gap of $63 per year that compounds over a long holding period. On income, FAB currently yields 1.79% against 1.06% for VTI.
Holdings Overlap
92.4% of FAB's money is in holdings VTI also owns. 18.5% of VTI's money is in holdings FAB also owns.
Most of FAB is already inside VTI. Owning both mostly buys the same companies twice.
618 positions in common, counted across the 653 positions we hold weights for in FAB and 3,441 in VTI, against full books of 1,350 and 3,524.
What only one of them owns
Our book lists 760 positions for VTI that do not appear in our book for FAB (79.1% of the fund), and 19 for FAB that do not appear in VTI (2.7%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in FAB | Weight in VTI | Difference |
|---|---|---|---|
| BRK.BBerkshire Hathaway, Inc. | 0.46% | 1.23% | 0.77% |
| XOMExxon Mobil Corp | 0.43% | 0.90% | 0.47% |
| CVXChevron Corp. | 0.45% | 0.53% | 0.08% |
| ACNAccenture Plc | 0.72% | 0.16% | 0.56% |
| BACBank Of America | 0.25% | 0.54% | 0.29% |
| TAt+T Inc | 0.53% | 0.24% | 0.29% |
| COPConocophillips | 0.55% | 0.22% | 0.33% |
| VZVerizon Communications, Inc. | 0.49% | 0.25% | 0.24% |
| DISWalt Disney Co | 0.48% | 0.25% | 0.23% |
| CTSHCOGNIZANT TECH SOLUTIONS-A | 0.68% | 0.04% | 0.64% |
92.4% of FAB is already inside VTI.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, FAB or VTI?
FAB has an expense ratio of 0.66% while VTI charges 0.03%. VTI is the cheaper option, by $63 a year on a $10,000 investment.
Which performed better, FAB or VTI?
Over the past year FAB returned +19.39% vs +16.63% for VTI, so FAB leads on 1-year performance. Over the longest common window we track (19 years), FAB annualized +7.02% vs +9.12% for VTI. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FAB or VTI?
FAB has been the more volatile fund at 20.6% annualized versus 16.0% for VTI. Worst drawdown: FAB -64.3% vs VTI -56.6%.
Should I hold both FAB and VTI?
FAB and VTI have a monthly-return correlation of 0.89, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between FAB and VTI?
92.4% of FAB's money is in holdings VTI also owns. 18.5% of VTI's is in holdings FAB also owns. They hold 618 positions in common, counted across the 653 positions we hold weights for in FAB and 3,441 in VTI.
Which pays a higher dividend, FAB or VTI?
FAB yields 1.79% while VTI yields 1.06%, so FAB currently pays the higher dividend yield.
Is VTI better than FAB?
VTI has a lower expense ratio. FAB led over 1Y, VTI over 3Y, 5Y and the full window. FAB is less concentrated, with 5.8% of the fund in its ten largest positions against 33.5%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.