BTO vs VXUS
John Hancock Financial Opportunities Fund vs Vanguard Total International Stock ETF
Quick Verdict
VXUS has a lower expense ratio. VXUS delivered stronger 1-year returns. VXUS offers more diversification with 8,747 holdings.
Side-by-Side Comparison
| Metric | BTO | VXUS | Winner |
|---|---|---|---|
| Expense Ratio | 2.96% | 0.05% | |
| AUM | $709M | $158.1B | |
| Dividend Yield | 6.18% | 2.59% | |
| Holdings | 184 | 8,747 | |
| YTD Return | +16.78% | +14.26% | |
| 1Y Return | +21.01% | +25.40% | |
| 3Y Return (annualized) | +22.87% | +20.47% | |
| 5Y Return (annualized) | +7.39% | +9.76% | |
| Volatility (annualized) | 31.1% | 15.1% | |
| Max Drawdown | -95.5% | -39.9% | |
| Fund Family | John Hancock Investment Management | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Aug 18, 1994 | Jan 26, 2011 |
BTO vs VXUS Performance
John Hancock Financial Opportunities Fund (BTO) is a ETF from John Hancock Investment Management and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year BTO returned +21.01% while VXUS returned +25.40%. Year to date, BTO is up 16.78% versus a gain of 14.26% for VXUS.
Over three years, BTO compounded at +22.87% per year against +20.47% for VXUS; over five years the annualized figures are +7.39% and +9.76% respectively. Across the full 16-year window we track, VXUS has the edge at +4.83% annualized vs -4.16%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
BTO has been the more volatile fund, with annualized monthly volatility of 31.1% compared with 15.1% 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 -95.5% for BTO and -39.9% for VXUS. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.62. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BTO charges 2.96% per year while VXUS charges 0.05%. On a $10,000 position that is $296 vs $5 annually, a gap of $291 per year that compounds over a long holding period. On income, BTO currently yields 6.18% against 2.59% for VXUS.
Holdings Overlap
BTO and VXUS share 3 holdings out of 8000 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, BTO or VXUS?
BTO has an expense ratio of 2.96% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $291 per year of difference.
Which performed better, BTO or VXUS?
Over the past year BTO returned +21.01% vs +25.40% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (16 years), BTO annualized -4.16% vs +4.83% for VXUS. Past performance does not guarantee future results.
Which is riskier, BTO or VXUS?
BTO has been the more volatile fund at 31.1% annualized versus 15.1% for VXUS. Worst drawdown: BTO -95.5% vs VXUS -39.9%.
Should I hold both BTO and VXUS?
BTO and VXUS have a monthly-return correlation of 0.62, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BTO and VXUS?
BTO and VXUS share 3 common holdings with a 0.1% weight overlap. Combined, they hold 8000 unique securities.
Which pays a higher dividend, BTO or VXUS?
BTO yields 6.18% while VXUS yields 2.59%, so BTO currently pays the higher dividend yield.
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