FDM vs VTWO: Grades, Fees and Holdings Compared

First Trust Dow Jones Select MicroCap Index Fund

FDMCNYSE Arca

Vanguard Russell 2000 ETF

VTWOANasdaq

Overlap

2.0%by weight

Expense ratio

VTWO −0.54pt a year

FDM0.60%VTWO0.06%

Avg volume · 30D

VTWO 154.5×the volume

FDM9.39KVTWO1.45M

10Y return · a year

FDM +1.1pt

FDM+11.6%VTWO+10.5%

FDM vs VTWO Performance

Oct 29, 2021 – Oct 30, 2026

+58.7%FDM+31.3%VTWO

Expense ratio: FDM 0.60%; VTWO 0.06%, better
Fund size: FDM $268M; VTWO $17.3B
1Y total return: FDM +25.1%, better; VTWO +14.8%
Yield (12M): FDM 1.51%, better; VTWO 1.20%
Holdings: FDM 136; VTWO 2000
Avg volume (30D): FDM 9.39K sh; VTWO 1.45M sh, better
NAV per share: FDM $90.64; VTWO $112.88
52W range

ETF.net Grade

Pillar letters and Scores for FDM, VTWO, with each pillar’s weight
Pillar	FDM	VTWO
Cost30% weight	F6	A75Higher
Mission25% weight	A76	A100Higher
Risk15% weight	A70Higher	D34
Tradability15% weight	B58Higher	C54
Holdings10% weight	F23	A70Higher
Durability5% weight	C42	A83Higher

Rank among US Small-Cap funds

How we build Categories ›

Same Category. FDM and VTWO are both graded against the same 16 US Small-Cap funds, so their Grades compare head to head.

US Small-Cap⁠

Category · 16 funds

See all 16 ›

VTWO ranks 4th and FDM 12th of 16 funds in the US Small-Cap Category.

Rank 1ASCHASchwab U.S. Small-Cap ETFScore 81
Rank 2AVBVanguard Morningstar Small-Cap ETFScore 77
Rank 3ABKSEBNY Mellon US Small Cap Core Equity ETFScore 72
Rank 4AVTWOVanguard Russell 2000 ETFScore 71
Rank 5ASMMDiShares Russell 2500 ETFScore 69
Rank 11CEBITHarbor AlphaEdge Small Cap Earners ETF (EBIT)Score 48
Rank 12CFDMFirst Trust Dow Jones Select MicroCap Index FundScore 44
Rank 13CEESWisdomTree U.S. SmallCap FundScore 41

Our read on each fund

ETF.net Research

FDMCFirst Trust Dow Jones Select MicroCap Index Fund

VTWOAVanguard Russell 2000 ETF

In short

FDM Micro-cap, but screened. FDM's index starts with the US total market and keeps only the tiny companies that clear size, liquidity and fundamental tests. Running since 2005, at 0.60% net of a waiver through April 30, 2027.

VTWO The Russell 2000 is the small-cap benchmark every headline quotes. VTWO is Vanguard's cheap seat on it: about 2,000 small US companies for 0.06% a year, a fraction of the fee on the best-known fund tracking the same index.

Stated mandate

FDM The fund seeks to track, before fees and expenses, the price and yield of the Dow Jones Select Microcap Index.

VTWO The fund invests in stocks in the Russell 2000 Index and seeks to closely track that index's return, representing small-cap U.S. stock exposure.

Why people hold it

FDM The index is a filter, not a dragnet: it pulls from the Dow Jones US Total Stock Market universe and keeps only micro caps meeting size, liquidity and fundamental eligibility criteria.spglobal.com
Listed in September 2005, one of the longest-tenured micro-cap index ETFs around, with a methodology that has been doing the same job through multiple market cycles.ftportfolios.com
Roughly 140 stocks, so this is a diversified basket of micro caps rather than a few concentrated bets. Normally at least 90% of assets sit in actual index constituents.ftportfolios.com
Cash comes back on a quarterly schedule, which is not a given in a corner of the market full of companies that pay nothing.

VTWO Same index, smaller toll. VTWO charges 0.06% while IWM, the other big Russell 2000 tracker, charges 0.19%. The small-cap category median is 0.25%.vanguard.com
Holds roughly 2,000 stocks, the whole small-cap benchmark rather than a trimmed slice. A multi-billion-dollar fund, actively traded, running since 2010 and paying quarterly.
Tracking has been about as tight as this corner of the market gets, one of the closest index-replication records among US small-cap funds.

Worth knowing

FDM Screening costs money: 0.60% net of a waiver through April 30, 2027 (0.65% gross), above the category median. Plain small-cap trackers like SCHA and VB charge 0.03%.
Thinly traded next to the giant small-cap funds, so bid-ask spreads can widen and sizeable orders deserve a careful look at the quote before they go in.
Micro caps are the volatile end of US equities. The fundamental screens narrow the list; they do not soften the ride, and the fund stays fully invested in the index.spglobal.com

VTWO Small-cap stocks swing harder than large caps, and this fund stays fully invested in them through the rough stretches.vanguard.com
Cheaper exists on the shelf: VB and SCHA run 0.03%, though they follow different small-cap indexes with different membership rules.
The Russell 2000 rebuilds its membership on a published schedule (June, plus a December rebalance from 2026), which packs index-driven trading into those dates.lseg.com

Full FDM profile⁠

Full VTWO profile⁠

FDM vs VTWO Holdings

How FDM and VTWO differ

Overlap by weight

2.0%

Shared holdings make up 99.5% of FDM and 2.0% of VTWO.

Level by level

Holdings134 in both2.0%
Sector11 Sectors57.7%
Asset classEquity100%
Countryby domicile100%

Sector

Sector weights in FDM and VTWO, widest gap first
Sector	More in FDMMore in VTWO	FDM	VTWO
Financials	FDM +39.1 points	57.2%	18.1%
Health Care	VTWO +13.9 points	6.9%	20.8%
Technology	VTWO +8.7 points	5.5%	14.2%
Industrials	VTWO +7.9 points	5.8%	13.7%
Materials	VTWO +3.9 points	0.9%	4.8%
Consumer Discretionary	VTWO +2.9 points	5.6%	8.5%
Utilities	VTWO +2.7 points	0.0%	2.7%
Communication	FDM +1.8 points	4.0%	2.2%
Energy	VTWO +1.8 points	4.4%	6.2%
Consumer Staples	FDM +1.3 points	3.9%	2.6%
Real Estate	VTWO +0.5 points	5.8%	6.3%

Country, concentration and asset class

Country by domicile

Country weights in FDM and VTWO, widest gap first
Country	More in FDMMore in VTWO	FDM	VTWO
United States	Same weight	100.0%	100.0%

Concentration

Weight in the 10 largest Holdings

FDM15.3%
VTWO5.4%

Securities held

FDM135
VTWO1,998

Asset class

FDM: Equity
VTWO: Equity

Holdings

Only in FDM1
In both134
Only in VTWO1,864

Only in FDM

1 security, 0.3% of FDM by weight

Q32 Bio Inc.0.30%

Only in VTWO

1,864 securities, 98.1% of VTWO by weight

SLBBH11422.36%
Twist Bioscience Corp0.42%
Moog Inc0.36%
JFrog Ltd0.35%
10X Genomics Inc0.35%
UMB Financial Corp0.32%
BrightSpring Health Services Inc0.31%
Glaukos Corp0.31%
Viasat Inc0.30%
Cytokinetics Inc0.29%
Hut 8 Corp0.29%
CareTrust REIT Inc0.29%
Krystal Biotech Inc0.29%
Protagonist Therapeutics Inc0.29%
Old National Bancorp/IN0.28%
FirstCash Holdings Inc0.28%
Jackson Financial Inc0.28%
InterDigital Inc0.28%
Brinker International Inc0.28%
SM Energy Co0.27%
TG Therapeutics Inc0.27%
Ryman Hospitality Properties Inc0.27%
MaxLinear Inc0.26%
PBF Energy Inc0.25%
Vaxcyte Inc0.25%
Oscar Health Inc0.24%
HealthEquity Inc0.24%
Silicon Laboratories Inc0.24%
Praxis Precision Medicines Inc0.24%
Arcosa Inc0.24%
Riot Platforms Inc0.24%
Zeta Global Holdings Corp0.24%
Plexus Corp0.23%
StoneX Group Inc0.23%
Zurn Elkay Water Solutions Corp0.23%
ESCO Technologies Inc0.23%
SSR Mining Inc0.23%
Commercial Metals Co0.23%
Kymera Therapeutics Inc0.23%
Terreno Realty Corp0.23%
Spyre Therapeutics Inc0.22%
Alkermes PLC0.22%
Federal Signal Corp0.22%
EnerSys0.22%
Qualys Inc0.22%
Fluor Corp0.22%
Matson Inc0.22%
Enpro Inc0.22%
Lantheus Holdings Inc0.21%
Macerich Co/The0.21%

Weight gaps

The 100 widest of 134 Holdings in both funds.

Holding weights in FDM and VTWO, widest gap first
Holding	More in FDMMore in VTWO	FDM	VTWO
PagerDuty, Inc.PD	FDM +2.08 points	2.12%	0.04%
Rigel Pharmaceuticals, Inc.RIGL	FDM +1.53 points	1.56%	0.03%
OneSpan Inc.OSPN	FDM +1.52 points	1.54%	0.02%
Apogee Enterprises, Inc.APOG	FDM +1.52 points	1.53%	0.02%
QuinStreet, Inc.QNST	FDM +1.50 points	1.53%	0.03%
Riley Exploration Permian, Inc.REPX	FDM +1.46 points	1.48%	0.02%
Standard Motor Products, Inc.SMP	FDM +1.43 points	1.46%	0.03%
Orrstown Financial Services, Inc.ORRF	FDM +1.37 points	1.40%	0.03%
Heritage Insurance Holdings, Inc.HRTG	FDM +1.34 points	1.37%	0.03%
Phibro Animal Health Corporation (Class A)PAHC	FDM +1.30 points	1.33%	0.03%
Independent Bank CorporationIBCP	FDM +1.30 points	1.32%	0.02%
Flowco Holdings Inc. (Class A)FLOC	FDM +1.24 points	1.26%	0.02%
Financial Institutions, Inc.FISI	FDM +1.23 points	1.26%	0.03%
GCM Grosvenor Inc. (Class A)GCMG	FDM +1.23 points	1.26%	0.03%
Hippo Holdings Inc.HIPO	FDM +1.19 points	1.21%	0.02%
CTO Realty Growth, Inc.CTO	FDM +1.18 points	1.20%	0.02%
Washington Trust Bancorp, Inc.WASH	FDM +1.18 points	1.20%	0.02%
Peapack-Gladstone Financial CorporationPGC	FDM +1.14 points	1.16%	0.02%
Root, Inc. (Class A)ROOT	FDM +1.13 points	1.15%	0.02%
Seneca Foods CorporationSENEA	FDM +1.12 points	1.15%	0.03%
Capital City Bank Group, Inc.CCBG	FDM +1.11 points	1.13%	0.02%
HomeTrust Bancshares, Inc.HTB	FDM +1.10 points	1.12%	0.02%
Shore Bancshares, Inc.SHBI	FDM +1.10 points	1.12%	0.02%
Consensus Cloud Solutions, Inc.CCSI	FDM +1.09 points	1.11%	0.02%
Bar Harbor BanksharesBHB	FDM +1.08 points	1.10%	0.02%
ACNB CorporationACNB	FDM +1.06 points	1.08%	0.02%
Peoples Financial Services Corp.PFIS	FDM +1.04 points	1.06%	0.02%
South Plains Financial, Inc.SPFI	FDM +1.05 points	1.06%	0.02%
Southern Missouri Bancorp, Inc.SMBC	FDM +1.04 points	1.06%	0.02%
PennyMac Mortgage Investment TrustPMT	FDM +1.04 points	1.06%	0.02%
EverQuote, Inc. (Class A)EVER	FDM +1.03 points	1.05%	0.02%
Great Southern Bancorp, Inc.GSBC	FDM +1.03 points	1.05%	0.02%
Carter Bankshares, Inc.CARE	FDM +1.03 points	1.05%	0.02%
First Business Financial Services, Inc.FBIZ	FDM +1.01 points	1.03%	0.02%
Scholastic CorporationSCHL	FDM +0.99 points	1.00%	0.01%
Arrow Financial CorporationAROW	FDM +0.99 points	1.01%	0.02%
Third Coast Bancshares, Inc.TCBX	FDM +0.97 points	0.99%	0.02%
Civista Bancshares, Inc.CIVB	FDM +0.93 points	0.95%	0.02%
California BanCorpBCAL	FDM +0.93 points	0.95%	0.02%
Invesco Mortgage Capital Inc.IVR	FDM +0.91 points	0.93%	0.02%
Insteel Industries, Inc.IIIN	FDM +0.88 points	0.90%	0.02%
Adamas Trust Inc.ADAM	FDM +0.87 points	0.89%	0.02%
Southern First Bancshares, Inc.SFST	FDM +0.85 points	0.87%	0.02%
Northrim BanCorp, Inc.NRIM	FDM +0.84 points	0.86%	0.02%
Ironwood Pharmaceuticals, Inc.IRWD	FDM +0.85 points	0.87%	0.02%
Kearny Financial Corp.KRNY	FDM +0.83 points	0.85%	0.02%
Ennis, Inc.EBF	FDM +0.82 points	0.84%	0.02%
Arbutus Biopharma CorporationABUS	FDM +0.80 points	0.83%	0.03%
Carriage Services, Inc.CSV	FDM +0.80 points	0.81%	0.01%
TPG RE Finance Trust, Inc.TRTX	FDM +0.79 points	0.81%	0.02%
ChoiceOne Financial Services, Inc.COFS	FDM +0.79 points	0.81%	0.02%
Farmers & Merchants Bancorp, Inc.FMAO	FDM +0.79 points	0.81%	0.02%
John B. Sanfilippo & Son, Inc.JBSS	FDM +0.78 points	0.80%	0.02%
Sierra BancorpBSRR	FDM +0.76 points	0.78%	0.02%
Ponce Financial Group, Inc.PDLB	FDM +0.76 points	0.77%	0.01%
Capital Bancorp, Inc.CBNK	FDM +0.75 points	0.76%	0.01%
El Pollo Loco Holdings, Inc.LOCO	FDM +0.75 points	0.76%	0.01%
Ethan Allen Interiors Inc.ETD	FDM +0.74 points	0.76%	0.02%
MediaAlpha, Inc. (Class A)MAX	FDM +0.74 points	0.75%	<0.01%
West Bancorporation, Inc.WTBA	FDM +0.74 points	0.75%	0.01%
SandRidge Energy, Inc.SD	FDM +0.73 points	0.74%	0.01%
Bridgewater Bancshares, Inc.BWB	FDM +0.72 points	0.73%	0.01%
Orange County Bancorp, Inc.OBT	FDM +0.70 points	0.72%	0.02%
Colony Bankcorp, Inc.CBAN	FDM +0.69 points	0.70%	0.01%
First BankFRBA	FDM +0.68 points	0.69%	0.01%
Oportun Financial Corp.OPRT	FDM +0.68 points	0.69%	0.01%
Home Bancorp, Inc.HBCP	FDM +0.67 points	0.69%	0.02%
Investors Title CompanyITIC	FDM +0.67 points	0.68%	0.01%
Bankwell Financial Group, Inc.BWFG	FDM +0.67 points	0.68%	0.01%
Unity Bancorp, Inc.UNTY	FDM +0.67 points	0.68%	0.01%
Puma Biotechnology, Inc.PBYI	FDM +0.66 points	0.67%	0.01%
Plumas BancorpPLBC	FDM +0.66 points	0.67%	0.01%
RBB BancorpRBB	FDM +0.64 points	0.65%	0.01%
Village Super Market, Inc.VLGEA	FDM +0.63 points	0.64%	0.01%
CorMedix Inc.CRMD	FDM +0.59 points	0.61%	0.02%
Central Garden & Pet CompanyCENT	FDM +0.59 points	0.60%	0.01%
Primis Financial Corp.FRST	FDM +0.58 points	0.59%	0.01%
Timberland Bancorp, Inc.TSBK	FDM +0.58 points	0.59%	0.01%
Flexsteel Industries, Inc.FLXS	FDM +0.57 points	0.58%	<0.01%
Northpointe Bancshares, Inc.NPB	FDM +0.57 points	0.58%	0.01%
Rocky Brands, Inc.RCKY	FDM +0.55 points	0.56%	0.01%
Investar Holding CorporationISTR	FDM +0.55 points	0.56%	0.01%
American Integrity Insurance Group, Inc.AII	FDM +0.55 points	0.56%	0.01%
Parke Bancorp, Inc.PKBK	FDM +0.54 points	0.55%	0.01%
Chemung Financial CorporationCHMG	FDM +0.54 points	0.55%	0.01%
Waterstone Financia, Inc.WSBF	FDM +0.53 points	0.54%	<0.01%
Donegal Group Inc. (Class A)DGICA	FDM +0.51 points	0.52%	0.01%
First Community CorporationFCCO	FDM +0.49 points	0.50%	<0.01%
Regional Management Corp.RM	FDM +0.49 points	0.50%	<0.01%
Franklin Financial Services CorporationFRAF	FDM +0.48 points	0.49%	<0.01%
MVB Financial Corp.MVBF	FDM +0.48 points	0.49%	0.01%
Ames National CorporationATLO	FDM +0.47 points	0.48%	<0.01%
Cricut, Inc. (Class A)CRCT	FDM +0.46 points	0.47%	0.01%
Alto Ingredients, Inc.ALTO	FDM +0.45 points	0.46%	<0.01%
Friedman Industries, IncorporatedFRD	FDM +0.45 points	0.46%	<0.01%
Isabella Bank CorporationISBA	FDM +0.45 points	0.46%	<0.01%
Twin Disc, IncorporatedTWIN	FDM +0.43 points	0.44%	0.01%
NewtekOne, Inc.NEWT	FDM +0.43 points	0.44%	<0.01%
Natural Grocers by Vitamin Cottage, Inc.NGVC	FDM +0.43 points	0.44%	0.01%
The RMR Group Inc. (Class A)RMR	FDM +0.43 points	0.44%	<0.01%

All 135 FDM holdings⁠All 1,969 VTWO holdings⁠

How we measure overlap

Each holding counts at its smaller weight in the two funds, summed over the full Holdings. Sector, country and asset class use the same rule on each fund’s split. Cash, FX and derivative lines stay out of the counts. Two bond funds get no overlap figure.

FDM vs VTWO Cost

Overpaying FDM vs VTWO

$10,547

On $10,000 over 30 years. 7% growth a year before fees, expense ratio only.

FDM 0.60%
$11,817
VTWO 0.06%
$1,270

Amount$10,000

Years30 years

Cost over time

FDM 0.60%
VTWO 0.06%
Overpaying

Year by year

Year	FDM	VTWO	Overpaying
10	$1,076	$110	$966
20	$4,116	$432	$3,684
30	$11,817	$1,270	$10,547

Expense ratio

0.60%FDM
0.06%VTWO, cheaper

VTWO0.06%FDM0.60%

0.03%0.60%

Middle half of US Small-Cap funds
Median 0.20%

VTWO 4th cheapest of 16 funds

FDM 14th cheapest of 16 funds

FDM vs VTWO Dividends

Last 12 months to Oct 30, 2026

Yield (12M): FDM 1.51%, better; VTWO 1.20%
Payout (12M): FDM $1.37; VTWO $1.36
Last payment: FDM $0.38; VTWO $0.39
Ex-dividend: FDM Sep 24, 2026; VTWO Sep 23, 2026
Paid on: FDM Sep 30, 2026; VTWO Sep 25, 2026
Frequency: FDM Quarterly; VTWO Quarterly

Distribution history

Per share, 2017 to 2026, same scale for both

FDMQuarterly · 39 paymentsAll FDM payments⁠

VTWOQuarterly · 39 paymentsAll VTWO payments⁠

FDM vs VTWO Risk

Fall from peak · 5 years

FDM
VTWO

Risk facts

VolatilityStd dev, 3 years: FDM 18.7%, betterVTWO 19.0%
Return per unit of riskSharpe ratio, 3 years: FDM 0.93, betterVTWO 0.86
Worst fallMax drawdown, 5 years: FDM −23.7%, betterVTWO −31.9%
Market sensitivityBeta, 5 years: FDM 0.98VTWO 1.14; Market = 1

FDM and VTWO in the news

All news⁠

Best ETFs
Best small-cap ETFs: Vanguard’s VB beats three great funds all charging just 0.03%
Updated Nov 2, 2026VTWO
Head-to-Head
Hold VB over IWM for a small-cap stake
Oct 30, 2026VTWO
New ETFs
Longnook's compounders ETF leads with tankers, Newmont and Exxon Mobil
Oct 5, 2026VTWO
Best ETFs
Schwab and Vanguard charge the same 0.03%. Their small-cap funds are 3.7 percentage points apart
Updated Oct 2, 2026VTWO

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FDM vs VTWO

In short

Stated mandate

Why people hold it