EFU vs VXUS

Quick Verdict

VXUS has a lower expense ratio. VXUS delivered stronger 1-year returns. VXUS offers more diversification with 7861 holdings.

Lower Fees: VXUSHigher Returns: VXUSMore Diversified: VXUS

Side-by-Side Comparison

MetricEFUVXUSWinner
Expense Ratio0.95%0.05%
AUM$1M$156.5B
Dividend Yield5.01%2.60%
Holdings58,747
YTD Return-23.39%+14.57%
1Y Return-34.97%+27.82%
3Y Return (annualized)-26.65%+19.27%
5Y Return (annualized)-17.35%+9.28%
Volatility (annualized)33.3%15.1%
Max Drawdown-99.5%-39.9%
Fund FamilyProSharesVanguard (US)
CategoryAlternativeEquity
InceptionOct 23, 2007Jan 26, 2011

EFU vs VXUS Performance

ProShares UltraShort MSCI EAFE (EFU) is a ETF from ProShares and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year EFU returned -34.97% while VXUS returned +27.82%. Year to date, EFU is down 23.39% versus a gain of 14.57% for VXUS.

Over three years, EFU compounded at -26.65% per year against +19.27% for VXUS; over five years the annualized figures are -17.35% and +9.28% respectively. Across the full 16-year window we track, VXUS has the edge at +4.86% annualized vs -20.45%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

EFU has been the more volatile fund, with annualized monthly volatility of 33.3% 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 -99.5% for EFU 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 -0.96. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

EFU charges 0.95% per year while VXUS charges 0.05%. On a $10,000 position that is $95 vs $5 annually, a gap of $90 per year that compounds over a long holding period. On income, EFU currently yields 5.01% against 2.60% for VXUS.

Frequently Asked Questions

Which is cheaper, EFU or VXUS?

EFU has an expense ratio of 0.95% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $90 per year of difference.

Which performed better, EFU or VXUS?

Over the past year EFU returned -34.97% vs +27.82% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (16 years), EFU annualized -20.45% vs +4.86% for VXUS. Past performance does not guarantee future results.

Which is riskier, EFU or VXUS?

EFU has been the more volatile fund at 33.3% annualized versus 15.1% for VXUS. Worst drawdown: EFU -99.5% vs VXUS -39.9%.

Should I hold both EFU and VXUS?

EFU and VXUS have a monthly-return correlation of -0.96, so combining them can provide real diversification depending on your allocation goals.

Which pays a higher dividend, EFU or VXUS?

EFU yields 5.01% while VXUS yields 2.60%, so EFU currently pays the higher dividend yield.

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