FDEC vs PSFM

FDEC vs PSFM

Which is better, FDEC or PSFM?

Each has led over a different period.

PSFM has a lower expense ratio. FDEC led over 3Y, 5Y and the full window, PSFM over 1Y. The two have moved almost in lockstep, correlation 0.93.

Lower Fees: PSFMHigher Returns: split

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

MetricFDECPSFM
Expense Ratio0.85%0.49%Best
AUM$1.3B$26M
Dividend Yield0.00%0.00%
Holdings1014
YTD Return+10.08%+12.56%Best
1Y Return+14.78%+15.06%Best
3Y Return (annualized)+16.28%Best+13.69%
5Y Return (annualized)+10.68%Best+9.85%
Volatility (annualized)10.2%9.2%Best
Max Drawdown-15.7%-14.3%Best
$10,000 over 5 years$16,609Best$15,996
Fund FamilyFirst Trust Portfolios (US)Pacer ETFs
CategoryAlternativeAlternative
StyleMulti AlternativeMulti Alternative
InceptionDec 18, 2020Mar 31, 2021

Not shown on this pair: Top 10 Weight.

Volatility and max drawdown are measured over the window both funds cover: Apr 1, 2021 to Oct 14, 2026 (5.5 years).

FDEC vs PSFM 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 5.5 years both funds cover.

Compare FDEC against instead:FDEC vs SPYFDEC vs QQQFDEC vs VOOFDEC vs VTIPSFM against:PSFM vs VXUS

FDEC vs PSFM Performance

FT Vest US Equity Buffer ETF - December (FDEC) is an ETF from First Trust Portfolios (US) and Pacer Swan SOS Flex (April) ETF (PSFM) is an ETF from Pacer ETFs. Over the past year FDEC returned +14.78% while PSFM returned +15.06%. Year to date, FDEC is up 10.08% versus a gain of 12.56% for PSFM.

Over three years, FDEC compounded at +16.28% per year against +13.69% for PSFM; over five years the annualized figures are +10.68% and +9.85% respectively. Across the full 6-year window we track, FDEC has the edge at +10.72% annualized vs +10.37%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

FDEC has been the more volatile fund, with annualized monthly volatility of 10.2% compared with 9.2% for PSFM. 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 -15.7% for FDEC and -14.3% for PSFM. Drawdown depth is what each fund did in the worst stretch of the window measured above.

The two funds' monthly returns correlate at 0.93. They move almost in lockstep, so holding both mostly duplicates the same exposure.

Fees and Cost Over Time

FDEC charges 0.85% per year while PSFM charges 0.49%. On a $10,000 position that is $85 vs $49 annually, a gap of $36 per year that compounds over a long holding period. On income, FDEC currently yields 0.00% against 0.00% for PSFM.

You are not choosing between two funds in isolation.

Whichever of FDEC and PSFM you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.

FDECPSFM

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, FDEC or PSFM?

FDEC has an expense ratio of 0.85% while PSFM charges 0.49%. PSFM is the cheaper option, by $36 a year on a $10,000 investment.

Which performed better, FDEC or PSFM?

Over the past year FDEC returned +14.78% vs +15.06% for PSFM, so PSFM leads on 1-year performance. Over the longest common window we track (6 years), FDEC annualized +10.72% vs +10.37% for PSFM. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, FDEC or PSFM?

FDEC has been the more volatile fund at 10.2% annualized versus 9.2% for PSFM. Worst drawdown: FDEC -15.7% vs PSFM -14.3%.

Should I hold both FDEC and PSFM?

FDEC and PSFM have a monthly-return correlation of 0.93, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.

Which pays a higher dividend, FDEC or PSFM?

FDEC yields 0.00% while PSFM yields 0.00%, so PSFM currently pays the higher dividend yield.

Is PSFM better than FDEC?

PSFM has a lower expense ratio. FDEC led over 3Y, 5Y and the full window, PSFM over 1Y. The two have moved almost in lockstep, correlation 0.93. Which one suits a particular account depends on what it is for. This is information, not a recommendation.