FALN vs VXUS
iShares Fallen Angels USD Bond ETF 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 7861 holdings.
Side-by-Side Comparison
| Metric | FALN | VXUS | Winner |
|---|---|---|---|
| Expense Ratio | 0.25% | 0.05% | |
| AUM | $1.6B | $156.5B | |
| Dividend Yield | 6.41% | 2.60% | |
| Holdings | 159 | 8,747 | |
| YTD Return | +2.01% | +14.57% | |
| 1Y Return | +6.00% | +27.82% | |
| 3Y Return (annualized) | +8.54% | +19.27% | |
| 5Y Return (annualized) | +3.53% | +9.28% | |
| Volatility (annualized) | 9.4% | 15.1% | |
| Max Drawdown | -30.0% | -39.9% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jun 14, 2016 | Jan 26, 2011 |
FALN vs VXUS Performance
iShares Fallen Angels USD Bond ETF (FALN) is a ETF from iShares by BlackRock (US) and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year FALN returned +6.00% while VXUS returned +27.82%. Year to date, FALN is up 2.01% versus a gain of 14.57% for VXUS.
Over three years, FALN compounded at +8.54% per year against +19.27% for VXUS; over five years the annualized figures are +3.53% and +9.28% respectively. Across the full 10-year window we track, VXUS has the edge at +4.86% annualized vs +3.67%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VXUS has been the more volatile fund, with annualized monthly volatility of 15.1% compared with 9.4% for FALN. 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 -30.0% for FALN 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
FALN charges 0.25% per year while VXUS charges 0.05%. On a $10,000 position that is $25 vs $5 annually, a gap of $20 per year that compounds over a long holding period. On income, FALN currently yields 6.41% against 2.60% for VXUS.
Holdings Overlap
FALN and VXUS share 0 holdings out of 8019 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, FALN or VXUS?
FALN has an expense ratio of 0.25% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $20 per year of difference.
Which performed better, FALN or VXUS?
Over the past year FALN returned +6.00% vs +27.82% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (10 years), FALN annualized +3.67% vs +4.86% for VXUS. Past performance does not guarantee future results.
Which is riskier, FALN or VXUS?
VXUS has been the more volatile fund at 15.1% annualized versus 9.4% for FALN. Worst drawdown: FALN -30.0% vs VXUS -39.9%.
Should I hold both FALN and VXUS?
FALN 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 FALN and VXUS?
FALN and VXUS share 0 common holdings with a 0.0% weight overlap. Combined, they hold 8019 unique securities.
Which pays a higher dividend, FALN or VXUS?
FALN yields 6.41% while VXUS yields 2.60%, so FALN currently pays the higher dividend yield.
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