FDM vs. VB

Last updated Aug 2, 2026

FDM (First Trust Dow Jones Select MicroCap Index Fund) and VB (Vanguard Small-Cap ETF) are both Small Cap Blend Equities funds - FDM tracks the Dow Jones Select Microcap Index while VB tracks the CRSP US Small Cap Index. Both are passively managed. Over the past 10 years, FDM returned 11.77%/yr vs 11.08%/yr for VB. Their correlation of 0.88 means they have usually moved in the same direction. FDM charges 0.60%/yr vs 0.03%/yr for VB.

Performance

FDM vs. VB - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust Dow Jones Select MicroCap Index Fund (FDM) and Vanguard Small-Cap ETF (VB). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both stocks are quite close, with FDM having a 15.65% return and VB slightly lower at 15.19%. Over the past 10 years, FDM has outperformed VB with an annualized return of 11.77%, while VB has yielded a comparatively lower 11.08% annualized return.

FDM

• 1D: -0.28%
• 1M: -1.12%
• 6M: 9.59%
• YTD: 15.65%
• 1Y: 34.43%
• 3Y*: 16.71%
• 5Y*: 10.85%
• 10Y*: 11.77%
• ALL TIME*: 8.82%

VB

• 1D: -0.22%
• 1M: -1.73%
• 6M: 10.09%
• YTD: 15.19%
• 1Y: 25.91%
• 3Y*: 14.02%
• 5Y*: 7.45%
• 10Y*: 11.08%
• ALL TIME*: 9.88%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
FDM First Trust Dow Jones Select MicroCap Index Fund	$791.30K	$957.71K	$769.46K
VB Vanguard Small-Cap ETF	$121.48M	$119.40M	$165.11M

FDM vs. VB - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FDM First Trust Dow Jones Select MicroCap Index Fund	15.65%	18.64%	13.00%	12.76%	-11.61%	35.08%	-4.04%	27.45%	-13.53%	8.72%
VB Vanguard Small-Cap ETF	15.19%	8.87%	14.17%	18.22%	-17.51%	17.57%	19.19%	27.34%	-9.34%	16.26%

Correlation

The correlation between FDM and VB is 0.73, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.73
Correlation (3Y) Balances recent behavior with more history.	0.83
Correlation (5Y) Shows whether the relationship held over a longer period.	0.87
Correlation (10Y) Provides a long-term view across more market conditions.	0.86
Correlation (All Time) Calculated using the full available price history since Sep 30, 2005	0.88

The correlation between FDM and VB shifts across timeframes, from 0.73 (1 year) to 0.88 (all time), reflecting how their relationship changes across market environments.

FDM vs. VB - Sectors Allocation Comparison

Sectors	FDM	VB
Financial Services	43.4%	12.4%
Industrials	14.3%	19.9%
Consumer Cyclical	9.8%	11.6%
Healthcare	6.6%	12.5%
Technology	6.6%	17.9%
Basic Materials	4.9%	4.4%
Consumer Defensive	4.6%	3.3%
Energy	4.4%	3.9%
Communication Services	3.2%	2.9%
Real Estate	1.3%	7.9%
Utilities	0.9%	3.3%

Return for Risk

FDM vs. VB — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

FDM

FDM Risk / Return Rank: 77
FDM Sharpe Ratio Rank: 74
FDM Sortino Ratio Rank: 76
FDM Omega Ratio Rank: 70
FDM Calmar Ratio Rank: 86
FDM Martin Ratio Rank: 80

VB

VB Risk / Return Rank: 69
VB Sharpe Ratio Rank: 63
VB Sortino Ratio Rank: 65
VB Omega Ratio Rank: 60
VB Calmar Ratio Rank: 76
VB Martin Ratio Rank: 78

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

FDM vs. VB - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Dow Jones Select MicroCap Index Fund (FDM) and Vanguard Small-Cap ETF (VB). 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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	FDM	VB	Difference
Sharpe ratio: Return per unit of total volatility	1.67	1.46	+0.21
Sortino ratio: Return per unit of downside risk	2.44	2.13	+0.31
Omega ratio: Gain probability vs. loss probability	1.29	1.26	+0.03
Calmar ratio: Return relative to maximum drawdown	3.31	2.67	+0.65
Martin ratio: Return relative to average drawdown	10.43	9.73	+0.70

FDM vs. VB - Sharpe Ratio Comparison

The current FDM Sharpe Ratio is 1.67, which is comparable to the VB Sharpe Ratio of 1.46. The chart below compares the historical Sharpe Ratios of FDM and VB, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

FDM vs. VB - Drawdown Comparison

The maximum FDM drawdown since its inception was -63.45%, which is greater than VB's maximum drawdown of -59.56%. Use the drawdown chart below to compare losses from any high point for FDM and VB.

Drawdown Indicators

	FDM	VB	Difference
Max Drawdown Largest peak-to-trough decline	-63.45%	-59.56%	-3.89%
Max Drawdown (1Y) Largest decline over 1 year	-9.30%	-8.98%	-0.32%
Max Drawdown (3Y) Largest decline over 3 years	-23.47%	-25.36%	+1.89%
Max Drawdown (5Y) Largest decline over 5 years	-23.74%	-28.15%	+4.41%
Max Drawdown (10Y) Largest decline over 10 years	-47.76%	-42.05%	-5.71%
Current Drawdown Current decline from peak	-2.48%	-2.63%	+0.15%
Average Drawdown Average peak-to-trough decline	-11.27%	-8.39%	-2.88%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.95%	2.46%	+0.49%

Volatility

FDM vs. VB - Volatility Comparison

First Trust Dow Jones Select MicroCap Index Fund (FDM) has a higher volatility of 3.90% compared to Vanguard Small-Cap ETF (VB) at 3.36%. This indicates that FDM's price experiences larger fluctuations and is considered to be riskier than VB based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FDM	VB	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.90%	3.36%	+0.54%
Volatility (6M) Calculated over the trailing 6-month period	12.43%	12.01%	+0.42%
Volatility (1Y) Calculated over the trailing 1-year period	18.49%	16.47%	+2.02%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.24%	20.69%	+0.55%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	23.33%	21.37%	+1.96%

FDM vs. VB - Expense Ratio Comparison

FDM has a 0.60% expense ratio, which is higher than VB's 0.03% expense ratio.

Dividends

FDM vs. VB - Dividend Comparison

FDM's dividend yield for the trailing twelve months is around 1.37%, more than VB's 1.22% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FDM First Trust Dow Jones Select MicroCap Index Fund	1.37%	1.43%	1.56%	1.81%	1.80%	1.08%	1.68%	1.37%	1.26%	0.97%	1.13%	1.45%
VB Vanguard Small-Cap ETF	1.22%	1.33%	1.30%	1.55%	1.59%	1.24%	1.14%	1.39%	1.67%	1.35%	1.50%	1.48%

Frequently Asked Questions

Can I hold both FDM and VB in my portfolio?

FDM and VB have a correlation of 0.73, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FDM or VB?

FDM has higher volatility (3.90%) compared to VB (3.36%). In terms of maximum drawdown, FDM dropped -63.45% vs VB's -59.56%.

Which ETF is better, FDM or VB?

On 10-year performance, FDM leads with 11.77% vs 11.08% for VB. On fees, VB is cheaper at 0.03% per year. On volatility, VB has been the lower-risk option at 3.36%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FDM or VB?

Over the 10-year period, FDM has performed better with a 11.77% return vs 11.08%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FDM or VB?

VB is cheaper with a 0.03% expense ratio, compared with 0.60% for FDM.

Which ETF pays a higher dividend yield, FDM or VB?

FDM has the higher dividend yield at 1.37%, compared with 1.22% for VB.

What is the main difference between FDM and VB?

FDM tracks Dow Jones Select Microcap Index, while VB tracks CRSP US Small Cap Index. They also come from different issuers: First Trust and Vanguard. Their fees differ too: 0.60% for FDM and 0.03% for VB.

Which has better risk-adjusted returns?

FDM currently has the higher Sharpe Ratio (1.67 vs 1.46), 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.