FDEM vs. VOO

Last updated Jun 4, 2026

FDEM (Fidelity Emerging Markets Multifactor ETF) and VOO (Vanguard S&P 500 ETF) are both exchange-traded funds - FDEM is a Emerging Markets Equities fund tracking the Fidelity Targeted Emerging Markets Factor Index, while VOO is a S&P 500 fund tracking the S&P 500 Index. Both are passively managed. Over the past 5 years, FDEM returned 9.43%/yr vs 13.90%/yr for VOO. A 0.62 correlation means they provide meaningful diversification when combined. FDEM charges 0.45%/yr vs 0.03%/yr for VOO.

Performance

FDEM vs. VOO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Fidelity Emerging Markets Multifactor ETF (FDEM) and Vanguard S&P 500 ETF (VOO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FDEM achieves a 22.58% return, which is significantly higher than VOO's 10.91% return.

FDEM

• 1D: -1.46%
• 1M: 7.69%
• YTD: 22.58%
• 6M: 24.26%
• 1Y: 45.52%
• 3Y*: 23.79%
• 5Y*: 9.43%
• 10Y*: —

VOO

• 1D: -0.70%
• 1M: 5.04%
• YTD: 10.91%
• 6M: 10.93%
• 1Y: 28.04%
• 3Y*: 22.44%
• 5Y*: 13.90%
• 10Y*: 15.56%

*Multi-year figures are annualized to reflect compound growth (CAGR)

FDEM vs. VOO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
FDEM Fidelity Emerging Markets Multifactor ETF	22.58%	26.75%	9.34%	17.26%	-13.11%	-3.52%	8.87%	5.73%
VOO Vanguard S&P 500 ETF	10.91%	17.82%	24.98%	26.32%	-18.17%	28.79%	18.32%	17.89%

Correlation

The correlation between FDEM and VOO is 0.68, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.68
Correlation (3Y) Calculated over the trailing 3-year period	0.59
Correlation (5Y) Calculated over the trailing 5-year period	0.58
Correlation (All Time) Calculated using the full available price history since Mar 1, 2019	0.62

The correlation between FDEM and VOO has been stable across timeframes, ranging from 0.58 to 0.68 - a consistent structural relationship.

FDEM vs. VOO - Sectors Allocation Comparison

Sectors	FDEM	VOO
Technology	31.8%	35.7%
Financial Services	16.3%	11.6%
Consumer Cyclical	12.2%	10.2%
Communication Services	10.6%	11.3%
Energy	8.3%	3.5%
Consumer Defensive	7.6%	4.9%
Real Estate	5.2%	1.9%
Industrials	4.8%	8.3%
Basic Materials	3.2%	1.8%
Healthcare	-	8.5%
Utilities	-	2.4%

Return for Risk

FDEM vs. VOO — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

FDEM

FDEM Risk / Return Rank: 76
FDEM Sharpe Ratio Rank: 80
FDEM Sortino Ratio Rank: 76
FDEM Omega Ratio Rank: 78
FDEM Calmar Ratio Rank: 71
FDEM Martin Ratio Rank: 74

VOO

VOO Risk / Return Rank: 70
VOO Sharpe Ratio Rank: 71
VOO Sortino Ratio Rank: 70
VOO Omega Ratio Rank: 70
VOO Calmar Ratio Rank: 62
VOO Martin Ratio Rank: 75

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

FDEM vs. VOO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Fidelity Emerging Markets Multifactor ETF (FDEM) and Vanguard S&P 500 ETF (VOO). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	FDEM	VOO	Difference
Sharpe ratio: Return per unit of total volatility	2.63	2.39	+0.25
Sortino ratio: Return per unit of downside risk	3.46	3.25	+0.20
Omega ratio: Gain probability vs. loss probability	1.48	1.43	+0.04
Calmar ratio: Return relative to maximum drawdown	3.60	3.16	+0.44
Martin ratio: Return relative to average drawdown	14.12	14.73	-0.61
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

FDEM vs. VOO - Sharpe Ratio Comparison

The current FDEM Sharpe Ratio is 2.63, which is comparable to the VOO Sharpe Ratio of 2.39. The chart below compares the historical Sharpe Ratios of FDEM and VOO, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	FDEM	VOO	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.63	2.39	+0.25
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.59	0.83	-0.24
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.87	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.53	0.89	-0.36

Drawdowns

FDEM vs. VOO - Drawdown Comparison

The maximum FDEM drawdown since its inception was -33.65%, roughly equal to the maximum VOO drawdown of -33.99%. Use the drawdown chart below to compare losses from any high point for FDEM and VOO.

Drawdown Indicators

	FDEM	VOO	Difference
Max Drawdown Largest peak-to-trough decline	-33.65%	-33.99%	+0.34%
Max Drawdown (1Y) Largest decline over 1 year	-12.70%	-8.90%	-3.80%
Max Drawdown (3Y) Largest decline over 3 years	-16.04%	-18.69%	+2.65%
Max Drawdown (5Y) Largest decline over 5 years	-29.02%	-24.52%	-4.50%
Max Drawdown (10Y) Largest decline over 10 years	—	-33.99%	—
Current Drawdown Current decline from peak	-1.46%	-0.70%	-0.76%
Average Drawdown Average peak-to-trough decline	-8.84%	-3.69%	-5.15%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.23%	1.91%	+1.32%

Volatility

FDEM vs. VOO - Volatility Comparison

Fidelity Emerging Markets Multifactor ETF (FDEM) has a higher volatility of 7.26% compared to Vanguard S&P 500 ETF (VOO) at 2.84%. This indicates that FDEM's price experiences larger fluctuations and is considered to be riskier than VOO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FDEM	VOO	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.26%	2.84%	+4.42%
Volatility (6M) Calculated over the trailing 6-month period	15.03%	8.90%	+6.13%
Volatility (1Y) Calculated over the trailing 1-year period	17.36%	11.80%	+5.56%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.13%	16.81%	-0.68%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.91%	18.01%	-0.10%

FDEM vs. VOO - Expense Ratio Comparison

FDEM has a 0.45% expense ratio, which is higher than VOO's 0.03% expense ratio.

Dividends

FDEM vs. VOO - Dividend Comparison

FDEM's dividend yield for the trailing twelve months is around 2.66%, more than VOO's 1.03% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FDEM Fidelity Emerging Markets Multifactor ETF	2.66%	3.23%	4.05%	4.41%	3.95%	2.71%	1.84%	2.39%	0.00%	0.00%	0.00%	0.00%
VOO Vanguard S&P 500 ETF	1.03%	1.13%	1.24%	1.46%	1.69%	1.25%	1.54%	1.88%	2.06%	1.78%	2.02%	2.10%

Frequently Asked Questions

Can I hold both FDEM and VOO in my portfolio?

FDEM and VOO have a correlation of 0.68, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FDEM or VOO?

FDEM has higher volatility (7.26%) compared to VOO (2.84%). In terms of maximum drawdown, FDEM dropped -33.65% vs VOO's -33.99%.

Which ETF is better, FDEM or VOO?

On 5-year performance, VOO leads with 13.90% vs 9.43% for FDEM. On fees, VOO is cheaper at 0.03% per year. On volatility, VOO has been the lower-risk option at 2.84%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FDEM or VOO?

Over the 5-year period, VOO has performed better with a 13.90% return vs 9.43%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FDEM or VOO?

VOO is cheaper with a 0.03% expense ratio, compared with 0.45% for FDEM.

Which ETF pays a higher dividend yield, FDEM or VOO?

FDEM has the higher dividend yield at 2.66%, compared with 1.03% for VOO.

What is the main difference between FDEM and VOO?

FDEM is categorized as Emerging Markets Equities, while VOO is S&P 500. FDEM tracks Fidelity Targeted Emerging Markets Factor Index, while VOO tracks S&P 500 Index. They also come from different issuers: Fidelity and Vanguard. Their fees differ too: 0.45% for FDEM and 0.03% for VOO.

Which has better risk-adjusted returns?

FDEM currently has the higher Sharpe Ratio (2.63 vs 2.39), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.