What does expense ratio mean when comparing FDIS and VOO?

The expense ratio is the annual fee charged by the fund to manage investors' money. For FDIS, it is 0.08%, while for VOO it is 0.03%. This difference of 0.05 percentage points may seem small, but it compounds over time, potentially affecting net returns. A lower expense ratio generally means less cost drag on investment performance, assuming all other factors remain equal.

How do ETFs track indices like those followed by FDIS and VOO?

ETFs like FDIS and VOO are designed to mirror the performance of specific indices. VOO tracks the S&P 500, encompassing 500 large-cap US companies, while FDIS follows the MSCI Consumer Discretionary index, focusing on consumer discretionary stocks. By holding securities in similar proportions to their respective indices, these funds aim to replicate index returns closely, albeit with slight deviations due to fees or tracking errors.

What does a low dividend yield imply for ETF investors?

Dividend yield indicates how much income an investment returns relative to its price. FDIS has a yield of 0.79%, while VOO offers 1.03%. These figures suggest that neither fund is primarily focused on generating high income. Instead, they are geared toward capital appreciation through growth or market participation. Investors seeking regular income may find these yields modest compared to dedicated dividend-focused funds.

Can ETFs like VOO provide exposure beyond a single sector?

Yes, ETFs such as VOO offer broad market exposure rather than being confined to a single sector. VOO tracks the S&P 500, which includes companies from various sectors like technology, healthcare, and consumer goods. This diversified approach helps reduce risk associated with sector-specific downturns, making it suitable for investors seeking widespread participation in the US equity market without concentrating on one industry.

How do top holdings influence the performance of FDIS?

FDIS is heavily concentrated in a few stocks, with Amazon (AMZN) and Tesla (TSLA) comprising significant portions of its portfolio. This concentration can lead to higher volatility and dependency on these companies’ performance. While this approach offers targeted exposure to consumer discretionary trends, it also introduces greater single-stock risk compared to more diversified funds, where no single holding dominates returns.

What distinguishes the risk profile of VOO from sector-focused ETFs?

VOO’s broad-market structure spreads risk across 500 large-cap firms, reducing the impact of any single company’s poor performance. Unlike sector ETFs like FDIS, which may be volatile due to concentration in industries like consumer discretionary, VOO tends to exhibit lower volatility and more stable long-term returns, aligning with general US equity market movements rather than specific sector cycles.

How do net assets affect liquidity for ETFs like FDIS and VOO?

Net assets reflect the total market value of an ETF’s holdings. VOO boasts $1.08 trillion in assets, enhancing its liquidity and tight bid-ask spreads, beneficial for large trades. FDIS, with $1.7 billion, may offer less liquidity, potentially resulting in wider spreads. Higher asset bases typically correlate with greater trading volume and smoother execution for investors.

Why do top holdings like AMZN and TSLA appear in both ETFs?

Both AMZN and TSLA are significant components of major indices. VOO includes them as part of the S&P 500, while FDIS holds them due to their role in the consumer discretionary sector. Shared holdings indicate some overlap in exposure, though their weights differ—22.68% in FDIS versus 3.84% in VOO—reflecting each fund’s distinct investment focus.

How can investors interpret the inception dates of FDIS and VOO?

Inception dates mark when funds began trading. VOO launched in September 2010, giving it a longer track record than FDIS, started in October 2013. A longer history allows for more extensive performance data and established operational reliability. However, both funds have navigated various market conditions, with VOO benefiting from Vanguard’s longstanding reputation for cost-effective investing.

What should investors know about comparing sector ETFs with broad-market funds?

Sector ETFs like FDIS target specific industries, offering concentrated exposure and potentially higher growth during favourable sectors cycles. Broad-market funds like VOO provide diversified exposure across multiple sectors, generally resulting in more stable long-term returns. Understanding these differences helps investors align fund choices with their risk tolerance and investment goals.

FDIS vs VOO

Two funds, one decision: we compare cost, performance and what each ETF actually holds in September 2026.

Compare FDIS and VOO side by side. Review the 0.08% and 0.03% expense ratios, top holdings like AMZN and TSLA, and yields of 0.79% and 1.03%. Understand how each fund tracks its index, from Consumer Discretionary stocks to the broad market. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

FDIS

Metric

VOO

0.08%

Expense Ratio

0.03%

0.79%

Dividend Yield

1.03%

$1.69B

Net Assets

$1.08T

246

Holdings

516

Oct 21, 2013

Inception Date

Sep 7, 2010

–

Index Tracked

–

Consumer Cyclical

Fund Category

Large Blend

VOO costs about $5.00 less per year for every $10,000 invested.

Shared Top Holdings

Holding	FDIS	VOO
AMZNAmazon.com, Inc.	22.68%	3.84%
TSLATesla, Inc.	16.09%	1.57%

Discover More Comparisons

FDIS vs VCR

Compare FDIS and VCR ETFs on fees, holdings, dividends and tracking. Review expense ratios, top assets and fund details for informed research.

FDIS vs XLY

Compare FDIS and XLY ETFs. Both have 0.08% expense ratios. Review net assets, yields, holdings and tracking differences for consumer cyclical funds.

FDIS vs FSTA

Compare FDIS and FSTA ETFs on fees, holdings and dividends. Review expense ratios, sector focus and tracking methods for both Fidelity funds today.

Investment Analysis

FDIS

Pros

Fidelity's established reputation as a major ETF provider offers potential operational reliability for the fund.
The fund maintains a low expense ratio of 0.08%, reducing annual management costs for investors.
Investors seeking concentrated exposure to the consumer discretionary sector can utilise this targeted fund.

Considerations

The fund's asset base of $1.7 billion may limit liquidity compared to larger sector products.
Its high concentration in Amazon and Tesla creates significant single-stock risk for shareholders.
The stated dividend yield of 0.79% is lower than some competing consumer discretionary ETFs.

VOO

Pros

VOO tracks the S&P 500, providing broad exposure to large-cap US companies.
Net assets of $1.08 trillion likely contribute to high liquidity and tight bid-ask spreads.
The fund benefits from Vanguard's well-known reputation for low-cost index investing and investor focus.

Considerations

Recent performance may lag more agile small-cap or sector-specific funds during certain market phases.
The index weighting methodology creates concentration risks in top holdings like Nvidia and Apple.
With a 1.03% yield, income-focused investors might find better alternatives in dividend-oriented funds.

Related Market Insights

Beyond 46,000: Investing in a Lower Rate Environment

Explore investment opportunities in rate-sensitive sectors as the Dow surpasses 46,000. Discover how lower interest rates benefit tech, consumer discretionary & finance. Invest with Nemo.

Aimee Silverwood | Financial Analyst

12 September 2025

Read Insight

Related Market Insights

Beyond 46,000: Investing in a Lower Rate Environment

Explore investment opportunities in rate-sensitive sectors as the Dow surpasses 46,000. Discover how lower interest rates benefit tech, consumer discretionary & finance. Invest with Nemo.

Aimee Silverwood | Financial Analyst

12 September 2025

Read Insight

About FDIS and VOO

FDIS (FDIS)

FDIS is an exchange-traded fund from Fidelity that seeks to provide exposure to the US consumer discretionary sector by tracking a broad MSCI consumer discretionary index. It holds a diversified basket of companies that sell goods and services tied to consumer spending — from retailers, restaurants and leisure companies to automotive and household discretionary brands. Investors should know this ETF concentrates sector risk: performance is closely linked to consumer confidence, employment and economic cycles, so returns can be more volatile than broad-market funds. FDIS can be useful for adding focused growth exposure or expressing a view on consumer trends, but it does not offer the broad diversification of a total-market ETF. Costs, tracking error and portfolio turnover matter — check the fund prospectus for the current expense ratio, dividend policy and largest holdings. This information is educational, not personal advice; investors should consider their risk tolerance, investment horizon and seek professional guidance if unsure.

VOO (VOO)

VOO is Vanguard’s exchange-traded fund designed to track the S&P 500 Index, offering broad exposure to about 500 of the largest publicly traded US companies. It aims to replicate the index’s performance minus fees by holding the same stocks in similar proportions, making it a straightforward, passive way to access large‑cap US equities. Investors commonly use VOO as a core holding for long‑term growth or as a simple building block in a diversified portfolio. It typically offers high liquidity and regular dividend distributions from underlying companies. As with any equity investment, VOO’s value can rise or fall with the market, and past performance is not a guide to future returns. Fees, trading costs and potential tracking error reduce returns slightly. This information is general and educational only and not personalised financial advice — consider your own circumstances or speak to a qualified adviser before investing.

Which Baskets Do They Appear In?

Investing Post-46,000: Which Assets May Outperform?

The Dow's historic close above 46,000 was fueled by anticipation of Federal Reserve rate cuts, signaling strong investor confidence. This creates an investment opportunity in sectors that are poised to benefit from a lower interest rate environment.

Published: 12 September 2025

Explore Basket

Which Baskets Do They Appear In?

Investing Post-46,000: Which Assets May Outperform?

Published: 12 September 2025

Explore Basket

Buy FDIS or VOO in Nemo

🆓

Zero Commission

Trade stocks, ETFs, and more with zero commission. Keep more of your returns.

🔒

Trusted & Regulated

Part of Exinity Group 2015, serving over a million customers globally.

💰

6% Interest on Cash

Earn 6% AER on uninvested cash with daily interest payments.

FDIS vs VOO

Fund Snapshot