ETF comparison
Verified factor-similar pair

FIW vs VFMF

These US-listed equity ETFs share verified FF6 US factor exposure. The modeled volatility of their factor-return difference is at or below 3% annualized on both the same 36-month window and a longer factor-history check.

SMB
Current similarity score
87
Factor-similar

The score is 100 for identical fitted exposures and 80 at the 3% modeled tracking-error limit. It includes market and non-market factors; it does not indicate which fund earned or is expected to earn more. How to read this score.

Quick Read

  • VFMF has the higher backtested relative Sharpe (1.266 vs 0.938).
  • VFMF has the lower published fee (0.18% vs 0.51%).
  • FIW is cheaper on dividend valuation (91 vs 113, where 100 is each fund's historical median).
  • VFMF has the stronger regression fit (adjusted R-squared 0.965 vs 0.825).

These are screening signals, not a complete review of portfolio construction, turnover, taxes, or trading quality.

FIW

First Trust Water ETF
SMB
Adj. R2
0.825
Rel. Sharpe
0.938
Mkt beta
0.88
AUM
US$1.8B
MER
0.51%
Valuation
91

VFMF

Vanguard U.S. Multifactor ETF
SMB HML
Adj. R2
0.965
Rel. Sharpe
1.266
Mkt beta
0.92
AUM
US$568M
MER
0.18%
Valuation
113

Market beta uses the common 36-month window through 2026-08. Adjusted R² and relative Sharpe describe each fund's separately published full-history model.

Factor Exposure Match

Blue bars compare factor beta magnitude from the same 36 months shown above. Green bars compare absolute t-stat strength; dim bars indicate |t| below 1.96. Every factor enters the distance calculation regardless of its t-statistic.

SMB
FIW
+0.51
|t|
+2.5
VFMF
+0.42
|t|
+4.8
diff +0.09
HML
FIW
+0.23
|t|
+1.0
VFMF
+0.39
|t|
+3.8
diff -0.15
RMW
FIW
+0.11
|t|
+0.7
VFMF
+0.12
|t|
+1.7
diff -0.01
CMA
FIW
+0.24
|t|
+0.9
VFMF
+0.14
|t|
+1.2
diff +0.10
UMD
FIW
+0.09
|t|
+0.7
VFMF
+0.04
|t|
+0.8
diff +0.04

What Happened Over the Same 36 Months

FIW adjusted total-return CAGR
7.78%
VFMF adjusted total-return CAGR
22.15%

VFMF ahead by 14.37 percentage points/year over 2023-09 through 2026-08. This is the observed difference between annualized compounded returns from adjusted prices, not an expected return or a factor-model estimate.

Historical factor attribution

Signed contribution to FIW minus VFMF, percentage points/year, using fitted 36-month exposures and average factor returns over those same months:

Market factor
-0.74
Other factors, combined
-1.14
Total factor-implied difference
-1.88

This arithmetic-average factor attribution excludes the regression intercept and fund-specific return. It therefore need not equal the observed CAGR difference and is not a forecast.

Why This Pair Matches

Modeled factor tracking error · 36m
1.14%/yr
Modeled tracking error · 120m factor history
1.90%/yr
Mkt beta diff
0.05
Rel. Sharpe diff
0.328

Fitted exposures and factor covariance estimate the volatility, not the average or direction, of the funds' modeled return difference. The common regression window is 2023-09 through 2026-08. A short-window estimate and a longer factor-history check must both be at or below 3.000%; this is a screening limit, not a forecast. Holdings, turnover, taxes and trading costs require a separate review. The Sharpe figures elsewhere on this page come from each fund's published full-history model and do not enter similarity ranking. See the full methodology.

FIW fund page VFMF fund page US ETF Leaders US Universe
Important context

VerifiedBeta publishes educational ETF research, not personalized investment advice, portfolio management, or security recommendations. Funds that screen well here can still be unsuitable for your objectives, taxes, liquidity needs, or constraints. Review fund documents, methodology assumptions, and your own circumstances before acting. See the full disclaimer.