FDM vs VTI
First Trust Dow Jones Select MicroCap Index Fund vs Vanguard Morningstar Total Stock Market ETF
Which is better, FDM or VTI?
Small Cap Value against Large Cap Blend.
VTI has a lower expense ratio. FDM led over 1Y, VTI over 3Y, 5Y and the full window. FDM is less concentrated, with 14.1% 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 | FDM | VTI |
|---|---|---|
| Expense Ratio | 0.60% | 0.03%Best |
| AUM | $263M | $689.2B |
| Dividend Yield | 1.56% | 1.06% |
| Holdings | 272 | 3,524 |
| YTD Return | +12.56% | +13.02%Best |
| 1Y Return | +18.70%Best | +16.63% |
| 3Y Return (annualized) | +19.55% | +21.97%Best |
| 5Y Return (annualized) | +9.16% | +11.99%Best |
| Volatility (annualized) | 21.1% | 15.5%Best |
| Max Drawdown | -64.0% | -56.6%Best |
| $10,000 over 5 years | $15,499 | $17,616Best |
| Top 10 Weight | 14.1%Best | 33.5% |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Small Cap Value | Large Cap Blend |
| Inception | Sep 27, 2005 | May 24, 2001 |
Volatility and max drawdown are measured over the window both funds cover: Sep 30, 2005 to Oct 14, 2026 (21 years).
FDM 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 21 years both funds cover.
FDM vs VTI Performance
First Trust Dow Jones Select MicroCap Index Fund (FDM) 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 FDM returned +18.70% while VTI returned +16.63%. Year to date, FDM is up 12.56% versus a gain of 13.02% for VTI.
Over three years, FDM compounded at +19.55% per year against +21.97% for VTI; over five years the annualized figures are +9.16% and +11.99% respectively. Across the full 21-year window we track, VTI has the edge at +9.48% annualized vs +7.71%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FDM has been the more volatile fund, with annualized monthly volatility of 21.1% compared with 15.5% 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 -64.0% for FDM 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 0.84. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FDM charges 0.60% per year while VTI charges 0.03%. On a $10,000 position that is $60 vs $3 annually, a gap of $57 per year that compounds over a long holding period. On income, FDM currently yields 1.56% against 1.06% for VTI.
Holdings Overlap
96.7% of FDM's money is in holdings VTI also owns.
Most of FDM is already inside VTI. Owning both mostly buys the same companies twice.
131 positions in common, counted across the 134 positions we hold weights for in FDM and 3,441 in VTI, against full books of 272 and 3,524.
What only one of them owns
Our book lists 1,155 positions for VTI that do not appear in our book for FDM (97.6% of the fund), and 3 for FDM that do not appear in VTI (1.9%).
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 FDM | Weight in VTI | Difference |
|---|---|---|---|
| PDPagerduty Inc | 1.96% | 0.00% | 1.96% |
| RIGLRigel Pharmaceuticals Inc | 1.46% | 0.00% | 1.46% |
| ORRFOrrstown Financial Services Inc | 1.36% | 0.00% | 1.36% |
| HRTGHeritage Insurance Holdings Inc | 1.34% | 0.00% | 1.34% |
| IBCPIndependent Bank Corp/mi Common Stock Usd1.0 | 1.34% | 0.00% | 1.34% |
| QNSTQuinstreet Inc | 1.34% | 0.00% | 1.34% |
| GCMGGcm Grosvenor Inc - Class A | 1.32% | 0.00% | 1.32% |
| SMPStandard Motor Products Inc | 1.32% | 0.00% | 1.32% |
| SENEASeneca Foods Corp | 1.31% | 0.00% | 1.31% |
| FISIFinancial Institutions, Inc. | 1.31% | 0.00% | 1.31% |
96.7% of FDM 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, FDM or VTI?
FDM has an expense ratio of 0.60% while VTI charges 0.03%. VTI is the cheaper option, by $57 a year on a $10,000 investment.
Which performed better, FDM or VTI?
Over the past year FDM returned +18.70% vs +16.63% for VTI, so FDM leads on 1-year performance. Over the longest common window we track (21 years), FDM annualized +7.71% vs +9.48% for VTI. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FDM or VTI?
FDM has been the more volatile fund at 21.1% annualized versus 15.5% for VTI. Worst drawdown: FDM -64.0% vs VTI -56.6%.
Should I hold both FDM and VTI?
FDM and VTI have a monthly-return correlation of 0.84, 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 FDM and VTI?
96.7% of FDM's money is in holdings VTI also owns. 0.0% of VTI's is in holdings FDM also owns. They hold 131 positions in common, counted across the 134 positions we hold weights for in FDM and 3,441 in VTI.
Which pays a higher dividend, FDM or VTI?
FDM yields 1.56% while VTI yields 1.06%, so FDM currently pays the higher dividend yield.
Is VTI better than FDM?
VTI has a lower expense ratio. FDM led over 1Y, VTI over 3Y, 5Y and the full window. FDM is less concentrated, with 14.1% 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.