Quick Verdict

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

Lower Fees: VXUSHigher Returns: FBTMore Diversified: VXUS

Side-by-Side Comparison

MetricFBTVXUSWinner
Expense Ratio0.54%0.05%
AUM$2.8B$156.5B
Dividend Yield0.00%2.60%
Holdings318,747
YTD Return+23.21%+14.57%
1Y Return+56.16%+27.82%
3Y Return (annualized)+19.45%+19.27%
5Y Return (annualized)+8.07%+9.28%
Volatility (annualized)22.9%15.1%
Max Drawdown-40.5%-39.9%
Fund FamilyFirst Trust Portfolios (US)Vanguard (US)
CategoryEquityEquity
InceptionJun 19, 2006Jan 26, 2011

FBT vs VXUS Performance

First Trust NYSE Arca Biotechnology Index Fund (FBT) is a ETF from First Trust Portfolios (US) and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year FBT returned +56.16% while VXUS returned +27.82%. Year to date, FBT is up 23.21% versus a gain of 14.57% for VXUS.

Over three years, FBT compounded at +19.45% per year against +19.27% for VXUS; over five years the annualized figures are +8.07% and +9.28% respectively. Across the full 16-year window we track, FBT has the edge at +13.64% annualized vs +4.86%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

FBT has been the more volatile fund, with annualized monthly volatility of 22.9% 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 -40.5% for FBT 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 0.54. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

FBT charges 0.54% per year while VXUS charges 0.05%. On a $10,000 position that is $54 vs $5 annually, a gap of $49 per year that compounds over a long holding period. On income, FBT currently yields 0.00% against 2.60% for VXUS.

Holdings Overlap

0.1%overlap

FBT and VXUS share 2 holdings out of 7889 unique holdings combined, representing a 0.1% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in FBTWeight in VXUSDifference
ARGX3.02%0.11%2.91%
GMAB:CO2.76%0.04%2.72%

Frequently Asked Questions

Which is cheaper, FBT or VXUS?

FBT has an expense ratio of 0.54% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $49 per year of difference.

Which performed better, FBT or VXUS?

Over the past year FBT returned +56.16% vs +27.82% for VXUS, so FBT leads on 1-year performance. Over the longest common window we track (16 years), FBT annualized +13.64% vs +4.86% for VXUS. Past performance does not guarantee future results.

Which is riskier, FBT or VXUS?

FBT has been the more volatile fund at 22.9% annualized versus 15.1% for VXUS. Worst drawdown: FBT -40.5% vs VXUS -39.9%.

Should I hold both FBT and VXUS?

FBT and VXUS have a monthly-return correlation of 0.54, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between FBT and VXUS?

FBT and VXUS share 2 common holdings with a 0.1% weight overlap. Combined, they hold 7889 unique securities.

Which pays a higher dividend, FBT or VXUS?

FBT yields 0.00% while VXUS yields 2.60%, so VXUS currently pays the higher dividend yield.

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