FTDS vs. VFMO

Last updated Jun 5, 2026

FTDS (First Trust Dividend Strength ETF) and VFMO (Vanguard U.S. Momentum Factor ETF) are both exchange-traded funds - FTDS is a Mid Cap Blend Equities fund tracking the Dividend Strength Index, while VFMO is a Momentum fund actively managed by Vanguard. FTDS is passively managed, while VFMO is actively managed. Over the past 5 years, FTDS returned 6.50%/yr vs 14.03%/yr for VFMO. A 0.66 correlation means they provide meaningful diversification when combined. FTDS charges 0.70%/yr vs 0.13%/yr for VFMO.

Performance

FTDS vs. VFMO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust Dividend Strength ETF (FTDS) and Vanguard U.S. Momentum Factor ETF (VFMO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FTDS achieves a 7.45% return, which is significantly lower than VFMO's 24.71% return.

FTDS

• 1D: 0.85%
• 1M: -1.71%
• YTD: 7.45%
• 6M: 7.32%
• 1Y: 19.84%
• 3Y*: 16.73%
• 5Y*: 6.50%
• 10Y*: 10.84%

VFMO

• 1D: 0.84%
• 1M: 4.64%
• YTD: 24.71%
• 6M: 22.49%
• 1Y: 44.76%
• 3Y*: 28.43%
• 5Y*: 14.03%
• 10Y*: —

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

FTDS vs. VFMO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018
FTDS First Trust Dividend Strength ETF	7.45%	13.64%	11.12%	11.75%	-13.54%	24.79%	14.16%	24.29%	-10.54%
VFMO Vanguard U.S. Momentum Factor ETF	24.71%	17.39%	26.14%	16.25%	-12.84%	19.16%	31.36%	28.22%	-11.41%

Correlation

The correlation between FTDS and VFMO is 0.44, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.44
Correlation (3Y) Calculated over the trailing 3-year period	0.59
Correlation (5Y) Calculated over the trailing 5-year period	0.69
Correlation (All Time) Calculated using the full available price history since Feb 16, 2018	0.66

Over the past year, the correlation between FTDS and VFMO has dropped to 0.44 - well below their long-term average of 0.66, suggesting their price drivers have been diverging.

FTDS vs. VFMO - Sectors Allocation Comparison

Sectors	FTDS	VFMO
Financial Services	27.9%	6.5%
Energy	20.2%	7.3%
Industrials	19.8%	24.7%
Healthcare	9.4%	22.9%
Technology	9.4%	17.5%
Basic Materials	8.0%	6.4%
Consumer Cyclical	3.4%	8.7%
Consumer Defensive	1.9%	2.5%
Communication Services	-	3.4%
Real Estate	-	0.1%
Utilities	-	0.2%

Return for Risk

FTDS vs. VFMO — Risk / Return Rank

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

FTDS

FTDS Risk / Return Rank: 49
FTDS Sharpe Ratio Rank: 45
FTDS Sortino Ratio Rank: 48
FTDS Omega Ratio Rank: 43
FTDS Calmar Ratio Rank: 62
FTDS Martin Ratio Rank: 49

VFMO

VFMO Risk / Return Rank: 69
VFMO Sharpe Ratio Rank: 65
VFMO Sortino Ratio Rank: 60
VFMO Omega Ratio Rank: 60
VFMO Calmar Ratio Rank: 80
VFMO Martin Ratio Rank: 80

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.

FTDS vs. VFMO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Dividend Strength ETF (FTDS) and Vanguard U.S. Momentum Factor ETF (VFMO). 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.

	FTDS	VFMO	Difference
Sharpe ratio: Return per unit of total volatility	1.55	2.12	-0.58
Sortino ratio: Return per unit of downside risk	2.34	2.77	-0.43
Omega ratio: Gain probability vs. loss probability	1.27	1.36	-0.09
Calmar ratio: Return relative to maximum drawdown	3.03	4.09	-1.06
Martin ratio: Return relative to average drawdown	8.12	15.46	-7.34
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

FTDS vs. VFMO - Sharpe Ratio Comparison

The current FTDS Sharpe Ratio is 1.55, which is comparable to the VFMO Sharpe Ratio of 2.12. The chart below compares the historical Sharpe Ratios of FTDS and VFMO, 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

	FTDS	VFMO	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.55	2.12	-0.58
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.37	0.65	-0.28
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.54	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.32	0.66	-0.34

Drawdowns

FTDS vs. VFMO - Drawdown Comparison

The maximum FTDS drawdown since its inception was -56.53%, which is greater than VFMO's maximum drawdown of -36.77%. Use the drawdown chart below to compare losses from any high point for FTDS and VFMO.

Drawdown Indicators

	FTDS	VFMO	Difference
Max Drawdown Largest peak-to-trough decline	-56.53%	-36.77%	-19.76%
Max Drawdown (1Y) Largest decline over 1 year	-6.57%	-10.98%	+4.41%
Max Drawdown (3Y) Largest decline over 3 years	-18.04%	-24.40%	+6.36%
Max Drawdown (5Y) Largest decline over 5 years	-23.35%	-25.80%	+2.45%
Max Drawdown (10Y) Largest decline over 10 years	-42.47%	—	—
Current Drawdown Current decline from peak	-3.65%	0.00%	-3.65%
Average Drawdown Average peak-to-trough decline	-9.87%	-7.76%	-2.11%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.45%	2.90%	-0.45%

Volatility

FTDS vs. VFMO - Volatility Comparison

The current volatility for First Trust Dividend Strength ETF (FTDS) is 3.58%, while Vanguard U.S. Momentum Factor ETF (VFMO) has a volatility of 6.05%. This indicates that FTDS experiences smaller price fluctuations and is considered to be less risky than VFMO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FTDS	VFMO	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.58%	6.05%	-2.47%
Volatility (6M) Calculated over the trailing 6-month period	8.90%	16.38%	-7.48%
Volatility (1Y) Calculated over the trailing 1-year period	12.90%	21.21%	-8.31%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.65%	21.70%	-4.05%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.14%	23.56%	-3.42%

FTDS vs. VFMO - Expense Ratio Comparison

FTDS has a 0.70% expense ratio, which is higher than VFMO's 0.13% expense ratio.

Dividends

FTDS vs. VFMO - Dividend Comparison

FTDS's dividend yield for the trailing twelve months is around 1.64%, more than VFMO's 0.62% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FTDS First Trust Dividend Strength ETF	1.64%	1.59%	2.05%	2.15%	2.31%	0.72%	0.99%	1.13%	1.14%	0.79%	1.24%	0.95%
VFMO Vanguard U.S. Momentum Factor ETF	0.62%	0.82%	0.72%	0.89%	1.72%	0.81%	0.45%	1.22%	0.70%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both FTDS and VFMO in my portfolio?

FTDS and VFMO have a correlation of 0.44, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FTDS or VFMO?

VFMO has higher volatility (6.05%) compared to FTDS (3.58%). In terms of maximum drawdown, FTDS dropped -56.53% vs VFMO's -36.77%.

Which ETF is better, FTDS or VFMO?

On 5-year performance, VFMO leads with 14.03% vs 6.50% for FTDS. On fees, VFMO is cheaper at 0.13% per year. On volatility, FTDS has been the lower-risk option at 3.58%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FTDS or VFMO?

Over the 5-year period, VFMO has performed better with a 14.03% return vs 6.50%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FTDS or VFMO?

VFMO is cheaper with a 0.13% expense ratio, compared with 0.70% for FTDS.

Which ETF pays a higher dividend yield, FTDS or VFMO?

FTDS has the higher dividend yield at 1.64%, compared with 0.62% for VFMO.

What is the main difference between FTDS and VFMO?

FTDS is categorized as Mid Cap Blend Equities, while VFMO is Momentum. They also come from different issuers: First Trust and Vanguard. Their fees differ too: 0.70% for FTDS and 0.13% for VFMO.

Which has better risk-adjusted returns?

VFMO currently has the higher Sharpe Ratio (2.12 vs 1.55), 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.