AFEM vs VXUS
First Trust Active Factor Emerging Markets ETF vs Vanguard Total International Stock ETF
Which is better, AFEM or VXUS?
AFEM has been ahead.
VXUS has a lower expense ratio. AFEM led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.90.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | AFEM | VXUS |
|---|---|---|
| Expense Ratio | 0.99% | 0.05%Best |
| AUM | $83M | $164.9B |
| Dividend Yield | 2.51% | 2.51% |
| Holdings | 178 | 8,844 |
| YTD Return | +25.14%Best | +12.44% |
| 1Y Return | +32.80%Best | +18.26% |
| 3Y Return (annualized) | +27.13%Best | +21.40% |
| 5Y Return (annualized) | +12.77%Best | +9.67% |
| Volatility (annualized) | 17.1% | 14.8%Best |
| Max Drawdown | -45.6% | -39.9%Best |
| $10,000 over 5 years | $18,238Best | $15,865 |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Blend |
| Inception | Jun 14, 2016 | Jan 26, 2011 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Jun 15, 2016 to Oct 2, 2026 (10.3 years).
AFEM vs VXUS growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 10.3 years both funds cover.
AFEM vs VXUS Performance
First Trust Active Factor Emerging Markets ETF (AFEM) is an ETF from First Trust Portfolios (US) and Vanguard Total International Stock ETF (VXUS) is an ETF from Vanguard (US). Over the past year AFEM returned +32.80% while VXUS returned +18.26%. Year to date, AFEM is up 25.14% versus a gain of 12.44% for VXUS.
Over three years, AFEM compounded at +27.13% per year against +21.40% for VXUS; over five years the annualized figures are +12.77% and +9.67% respectively. Across the full 10-year window we track, AFEM has the edge at +9.04% annualized vs +8.51%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
AFEM has been the more volatile fund, with annualized monthly volatility of 17.1% compared with 14.8% for VXUS. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -45.6% for AFEM and -39.9% for VXUS. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.90. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
AFEM charges 0.99% per year while VXUS charges 0.05%. On a $10,000 position that is $99 vs $5 annually, a gap of $94 per year that compounds over a long holding period. On income, AFEM currently yields 2.51% against 2.51% for VXUS.
Holdings Overlap
At least 57.6% of AFEM's money is in holdings VXUS also owns.
Stated as a floor: for VXUS, our book for it covers 89.3% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
The two portfolios partly overlap.
The two holdings books were reported 46 days apart, AFEM as of Sep 15, 2026 and VXUS as of Jul 31, 2026, so some of the difference between them is the time between the two reports rather than the funds.
118 positions in common, counted across the 178 positions we hold weights for in AFEM and 8,082 in VXUS, against full books of 178 and 8,844.
Top Shared Holdings
| Stock | Weight in AFEM | Weight in VXUS | Difference |
|---|---|---|---|
| 000660:KRSk Hynix Inc Common Stock KRW 5000 | 3.81% | 1.41% | 2.40% |
| 1398:HKIndustrial & Commercial Bank Manufacturing & . Ltd. | 1.78% | 0.17% | 1.61% |
| 3037:TWUnimicron Technology | 1.78% | 0.07% | 1.71% |
| 2454:TWMediaTek Inc ORD TWD10 | 1.50% | 0.35% | 1.15% |
| 000270:KRKia Corporation | 1.68% | 0.05% | 1.63% |
| 3328:SHBank Of Communications Co Ltd | 1.54% | 0.02% | 1.52% |
| 3653:TWJentech Precision Industrial Co Ltd | 1.45% | 0.02% | 1.43% |
| ICT:PHIntl Container Term Svcs Php1 | 1.41% | 0.04% | 1.37% |
| POLI:ILBank Hapoalim Bm Common Stock Ils 1 | 1.38% | 0.07% | 1.31% |
| FED:MBFederal Bank Ltd | 1.13% | 0.02% | 1.11% |
57.6% of AFEM is already inside VXUS.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
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Frequently Asked Questions
Which is cheaper, AFEM or VXUS?
AFEM has an expense ratio of 0.99% while VXUS charges 0.05%. VXUS is the cheaper option, by $94 a year on a $10,000 investment.
Which performed better, AFEM or VXUS?
Over the past year AFEM returned +32.80% vs +18.26% for VXUS, so AFEM leads on 1-year performance. Over the longest common window we track (10 years), AFEM annualized +9.04% vs +8.51% for VXUS. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, AFEM or VXUS?
AFEM has been the more volatile fund at 17.1% annualized versus 14.8% for VXUS. Worst drawdown: AFEM -45.6% vs VXUS -39.9%.
Should I hold both AFEM and VXUS?
AFEM and VXUS have a monthly-return correlation of 0.90, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
What is the holdings overlap between AFEM and VXUS?
At least 57.6% of AFEM's money is in holdings VXUS also owns. Our book for VXUS is partial, so the real figure is this or higher. They hold 118 positions in common, counted across the 178 positions we hold weights for in AFEM and 8,082 in VXUS.
Which pays a higher dividend, AFEM or VXUS?
AFEM yields 2.51% while VXUS yields 2.51%, so AFEM currently pays the higher dividend yield.
Is VXUS better than AFEM?
VXUS has a lower expense ratio. AFEM led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.90. Which one suits a particular account depends on what it is for. This is information, not a recommendation.