FDL vs VXUS

FDL vs VXUS
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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

MetricFDLVXUSWinner
Expense Ratio0.43%0.05%
AUM$8.0B$158.1B
Dividend Yield3.59%2.59%
Holdings1018,747
YTD Return+20.26%+15.22%
1Y Return+26.63%+26.86%
3Y Return (annualized)+20.32%+20.34%
5Y Return (annualized)+13.63%+9.38%
Volatility (annualized)16.1%15.1%
Max Drawdown-68.6%-39.9%
Fund FamilyFirst Trust Portfolios (US)Vanguard (US)
CategoryEquityEquity
InceptionMar 9, 2006Jan 26, 2011

FDL vs VXUS Performance

First Trust Morningstar Dividend Leaders Index Fund (FDL) 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 FDL returned +26.63% while VXUS returned +26.86%. Year to date, FDL is up 20.26% versus a gain of 15.22% for VXUS.

Over three years, FDL compounded at +20.32% per year against +20.34% for VXUS; over five years the annualized figures are +13.63% and +9.38% respectively. Across the full 16-year window we track, FDL has the edge at +5.93% annualized vs +4.89%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

FDL has been the more volatile fund, with annualized monthly volatility of 16.1% 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 -68.6% for FDL 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 0.68. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

FDL charges 0.43% per year while VXUS charges 0.05%. On a $10,000 position that is $43 vs $5 annually, a gap of $38 per year that compounds over a long holding period. On income, FDL currently yields 3.59% against 2.59% for VXUS.

Holdings Overlap

0.1%overlap

FDL and VXUS share 2 holdings out of 7967 unique holdings combined, representing a 0.1% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in FDLWeight in VXUSDifference
HBAN0.79%0.05%0.74%
AM0.17%0.02%0.15%

Frequently Asked Questions

Which is cheaper, FDL or VXUS?

FDL has an expense ratio of 0.43% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $38 per year of difference.

Which performed better, FDL or VXUS?

Over the past year FDL returned +26.63% vs +26.86% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (16 years), FDL annualized +5.93% vs +4.89% for VXUS. Past performance does not guarantee future results.

Which is riskier, FDL or VXUS?

FDL has been the more volatile fund at 16.1% annualized versus 15.1% for VXUS. Worst drawdown: FDL -68.6% vs VXUS -39.9%.

Should I hold both FDL and VXUS?

FDL and VXUS have a monthly-return correlation of 0.68, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between FDL and VXUS?

FDL and VXUS share 2 common holdings with a 0.1% weight overlap. Combined, they hold 7967 unique securities.

Which pays a higher dividend, FDL or VXUS?

FDL yields 3.59% while VXUS yields 2.59%, so FDL currently pays the higher dividend yield.

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