FALN vs VXUS
iShares Fallen Angels USD Bond ETF vs Vanguard Total International Stock ETF
Which is better, FALN or VXUS?
High Yield Bond against Large Cap Blend.
VXUS has a lower expense ratio. VXUS led over 1Y, 3Y, 5Y and the full window.
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 | FALN | VXUS |
|---|---|---|
| Expense Ratio | 0.25% | 0.05%Best |
| AUM | $1.7B | $158.1B |
| Dividend Yield | 6.51% | 2.59% |
| Holdings | 157 | 8,747 |
| YTD Return | +2.43% | +16.15%Best |
| 1Y Return | +4.64% | +27.58%Best |
| 3Y Return (annualized) | +8.70% | +20.48%Best |
| 5Y Return (annualized) | +3.33% | +9.09%Best |
| Volatility (annualized) | 9.4%Best | 14.8% |
| Max Drawdown | -30.0%Best | -39.9% |
| $10,000 over 5 years | $11,780 | $15,450Best |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) |
| Category | Fixed Income | Equity |
| Style | High Yield Bond | 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 17, 2016 to Sep 4, 2026 (10.2 years).
FALN 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 10.2 years both funds cover.
FALN vs VXUS Performance
iShares Fallen Angels USD Bond ETF (FALN) is an ETF from iShares by BlackRock (US) and Vanguard Total International Stock ETF (VXUS) is an ETF from Vanguard (US). Over the past year FALN returned +4.64% while VXUS returned +27.58%. Year to date, FALN is up 2.43% versus a gain of 16.15% for VXUS.
Over three years, FALN compounded at +8.70% per year against +20.48% for VXUS; over five years the annualized figures are +3.33% and +9.09% respectively. Across the full 10-year window we track, VXUS has the edge at +8.85% annualized vs +3.69%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VXUS has been the more volatile fund, with annualized monthly volatility of 14.8% 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 what each fund did in the worst stretch of the window measured above.
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 6.51% against 2.59% for VXUS.
Holdings Overlap
We hold position weights for 151 holdings in FALN and 8,094 in VXUS, totalling 96.7% and 87.7% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 151 positions we hold weights for in FALN and 8,094 in VXUS, against full books of 157 and 8,747.
What only one of them owns
Measured across the 151 and 8,094 positions we hold weights for.
VXUS holds 50 positions FALN does not, 2.1% of the fund.
Largest: SHEL 0.48%, BALN 3.4 04/15/30 14 0.16%, PRYMY 0.11%, VWO 0.11%, BASFY 0.11%
You are not choosing between two funds in isolation.
Whichever of FALN and VXUS you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
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, by $20 a year on a $10,000 investment.
Which performed better, FALN or VXUS?
Over the past year FALN returned +4.64% vs +27.58% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (10 years), FALN annualized +3.69% vs +8.85% for VXUS. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FALN or VXUS?
VXUS has been the more volatile fund at 14.8% 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 their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, FALN or VXUS?
FALN yields 6.51% while VXUS yields 2.59%, so FALN currently pays the higher dividend yield.
Is VXUS better than FALN?
VXUS has a lower expense ratio. VXUS led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.