FCT vs VXUS

Quick Verdict

VXUS has a lower expense ratio. VXUS delivered stronger 1-year returns. VXUS offers more diversification with 8,747 holdings.

Lower Fees: VXUSHigher Returns: VXUSMore Diversified: VXUS

Side-by-Side Comparison

MetricFCTVXUSWinner
Expense Ratio1.67%0.05%
AUM$252M$158.1B
Dividend Yield11.84%2.59%
Holdings2218,747
YTD Return+2.69%+15.22%
1Y Return+7.32%+26.86%
3Y Return (annualized)+10.56%+20.34%
5Y Return (annualized)+5.74%+9.38%
Volatility (annualized)14.8%15.1%
Max Drawdown-72.7%-39.9%
Fund FamilyFirst Trust Portfolios (US)Vanguard (US)
CategoryFixed IncomeEquity
InceptionMay 25, 2004Jan 26, 2011

FCT vs VXUS Performance

First Trust Senior Floating Rate Income Fund II (FCT) 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 FCT returned +7.32% while VXUS returned +26.86%. Year to date, FCT is up 2.69% versus a gain of 15.22% for VXUS.

Over three years, FCT compounded at +10.56% per year against +20.34% for VXUS; over five years the annualized figures are +5.74% and +9.38% respectively. Across the full 16-year window we track, VXUS has the edge at +4.89% annualized vs -0.76%. 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 14.8% for FCT. 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 -72.7% for FCT 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 0.57. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

FCT charges 1.67% per year while VXUS charges 0.05%. On a $10,000 position that is $167 vs $5 annually, a gap of $162 per year that compounds over a long holding period. On income, FCT currently yields 11.84% against 2.59% for VXUS.

Holdings Overlap

0.0%overlap

FCT and VXUS share 1 holdings out of 7974 unique holdings combined, representing a 0.0% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in FCTWeight in VXUSDifference
AKRX0.00%0.00%0.00%

Frequently Asked Questions

Which is cheaper, FCT or VXUS?

FCT has an expense ratio of 1.67% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $162 per year of difference.

Which performed better, FCT or VXUS?

Over the past year FCT returned +7.32% vs +26.86% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (16 years), FCT annualized -0.76% vs +4.89% for VXUS. Past performance does not guarantee future results.

Which is riskier, FCT or VXUS?

VXUS has been the more volatile fund at 15.1% annualized versus 14.8% for FCT. Worst drawdown: FCT -72.7% vs VXUS -39.9%.

Should I hold both FCT and VXUS?

FCT and VXUS have a monthly-return correlation of 0.57, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between FCT and VXUS?

FCT and VXUS share 1 common holdings with a 0.0% weight overlap. Combined, they hold 7974 unique securities.

Which pays a higher dividend, FCT or VXUS?

FCT yields 11.84% while VXUS yields 2.59%, so FCT currently pays the higher dividend yield.

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