EDD vs VXUS
Morgan Stanley Emerging Markets Domestic Debt Fund Inc. 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 | EDD | VXUS | Winner |
|---|---|---|---|
| Expense Ratio | 1.90% | 0.05% | |
| AUM | - | $158.1B | |
| Dividend Yield | 10.73% | 2.59% | |
| Holdings | 684 | 8,747 | |
| YTD Return | +11.75% | +15.22% | |
| 1Y Return | +21.30% | +26.86% | |
| 3Y Return (annualized) | +18.96% | +20.34% | |
| 5Y Return (annualized) | +8.29% | +9.38% | |
| Volatility (annualized) | 20.9% | 15.1% | |
| Max Drawdown | -81.5% | -39.9% | |
| Fund Family | Morgan Stanley Investment Management | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Apr 24, 2007 | Jan 26, 2011 |
EDD vs VXUS Performance
Morgan Stanley Emerging Markets Domestic Debt Fund Inc. (EDD) is a ETF from Morgan Stanley Investment Management and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year EDD returned +21.30% while VXUS returned +26.86%. Year to date, EDD is up 11.75% versus a gain of 15.22% for VXUS.
Over three years, EDD compounded at +18.96% per year against +20.34% for VXUS; over five years the annualized figures are +8.29% and +9.38% respectively. Across the full 16-year window we track, VXUS has the edge at +4.89% annualized vs -3.86%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
EDD has been the more volatile fund, with annualized monthly volatility of 20.9% 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 -81.5% for EDD 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 0.80. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
EDD charges 1.90% per year while VXUS charges 0.05%. On a $10,000 position that is $190 vs $5 annually, a gap of $185 per year that compounds over a long holding period. On income, EDD currently yields 10.73% against 2.59% for VXUS.
Holdings Overlap
EDD and VXUS share 0 holdings out of 7878 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, EDD or VXUS?
EDD has an expense ratio of 1.90% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $185 per year of difference.
Which performed better, EDD or VXUS?
Over the past year EDD returned +21.30% vs +26.86% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (16 years), EDD annualized -3.86% vs +4.89% for VXUS. Past performance does not guarantee future results.
Which is riskier, EDD or VXUS?
EDD has been the more volatile fund at 20.9% annualized versus 15.1% for VXUS. Worst drawdown: EDD -81.5% vs VXUS -39.9%.
Should I hold both EDD and VXUS?
EDD and VXUS have a monthly-return correlation of 0.80, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between EDD and VXUS?
EDD and VXUS share 0 common holdings with a 0.0% weight overlap. Combined, they hold 7878 unique securities.
Which pays a higher dividend, EDD or VXUS?
EDD yields 10.73% while VXUS yields 2.59%, so EDD currently pays the higher dividend yield.
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