FDEM vs VXUS
Fidelity Emerging Markets Multifactor 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 8,747 holdings.
Side-by-Side Comparison
| Metric | FDEM | VXUS | Winner |
|---|---|---|---|
| Expense Ratio | 0.25% | 0.05% | |
| AUM | $581M | $158.1B | |
| Dividend Yield | 3.00% | 2.59% | |
| Holdings | 208 | 8,747 | |
| YTD Return | +13.98% | +15.22% | |
| 1Y Return | +24.59% | +26.86% | |
| 3Y Return (annualized) | +20.72% | +20.34% | |
| 5Y Return (annualized) | +9.83% | +9.38% | |
| Volatility (annualized) | 15.6% | 15.1% | |
| Max Drawdown | -33.6% | -39.9% | |
| Fund Family | Fidelity Investments (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Feb 26, 2019 | Jan 26, 2011 |
FDEM vs VXUS Performance
Fidelity Emerging Markets Multifactor ETF (FDEM) is a ETF from Fidelity Investments (US) and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year FDEM returned +24.59% while VXUS returned +26.86%. Year to date, FDEM is up 13.98% versus a gain of 15.22% for VXUS.
Over three years, FDEM compounded at +20.72% per year against +20.34% for VXUS; over five years the annualized figures are +9.83% and +9.38% respectively. Across the full 8-year window we track, FDEM has the edge at +8.28% annualized vs +4.89%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FDEM has been the more volatile fund, with annualized monthly volatility of 15.6% 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 -33.6% for FDEM 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 0.90. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
FDEM 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, FDEM currently yields 3.00% against 2.59% for VXUS.
Holdings Overlap
FDEM and VXUS share 147 holdings out of 7921 unique holdings combined, representing a 5.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in FDEM | Weight in VXUS | Difference |
|---|---|---|---|
| 000660:KR | 6.40% | 0.90% | 5.50% |
| 0700:HK | 2.85% | 0.92% | 1.93% |
| 2454:TW | 1.59% | 0.20% | 1.39% |
| FUNO11:MX | Pro | Pro | Pro |
| EMAARDEV:AE | Pro | Pro | Pro |
| 271560:KR | Pro | Pro | Pro |
| 1209:HK | Pro | Pro | Pro |
| BRITANNIA:MB | Pro | Pro | Pro |
| 2308:TW | Pro | Pro | Pro |
| 900948:SH | Pro | Pro | Pro |
Frequently Asked Questions
Which is cheaper, FDEM or VXUS?
FDEM 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, FDEM or VXUS?
Over the past year FDEM returned +24.59% vs +26.86% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (8 years), FDEM annualized +8.28% vs +4.89% for VXUS. Past performance does not guarantee future results.
Which is riskier, FDEM or VXUS?
FDEM has been the more volatile fund at 15.6% annualized versus 15.1% for VXUS. Worst drawdown: FDEM -33.6% vs VXUS -39.9%.
Should I hold both FDEM and VXUS?
FDEM and VXUS have a monthly-return correlation of 0.90, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between FDEM and VXUS?
FDEM and VXUS share 147 common holdings with a 5.5% weight overlap. Combined, they hold 7921 unique securities.
Which pays a higher dividend, FDEM or VXUS?
FDEM yields 3.00% while VXUS yields 2.59%, so FDEM currently pays the higher dividend yield.
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