FEDM vs VXUS

Quick Verdict

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

Lower Fees: VXUSHigher Returns: VXUSMore Diversified: VXUS

Side-by-Side Comparison

MetricFEDMVXUSWinner
Expense Ratio0.12%0.05%
AUM$78M$156.5B
Dividend Yield2.98%2.60%
Holdings2618,747
YTD Return+12.85%+14.57%
1Y Return+24.09%+27.82%
3Y Return (annualized)+16.41%+19.27%
5Y Return (annualized)-+9.28%
Volatility (annualized)15.7%15.1%
Max Drawdown-29.4%-39.9%
Fund FamilyFlexshares TrustVanguard (US)
CategoryEquityEquity
InceptionSep 20, 2021Jan 26, 2011

FEDM vs VXUS Performance

FlexShares ESG & Climate Developed Markets ex-US Core Index Fund (FEDM) is a ETF from Flexshares Trust and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year FEDM returned +24.09% while VXUS returned +27.82%. Year to date, FEDM is up 12.85% versus a gain of 14.57% for VXUS.

Over three years, FEDM compounded at +16.41% per year against +19.27% for VXUS. Across the full 5-year window we track, FEDM has the edge at +8.81% annualized vs +4.86%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

FEDM has been the more volatile fund, with annualized monthly volatility of 15.7% 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 -29.4% for FEDM 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 0.96. They move almost in lockstep, so holding both mostly duplicates the same exposure.

Fees and Cost Over Time

FEDM charges 0.12% per year while VXUS charges 0.05%. On a $10,000 position that is $12 vs $5 annually, a gap of $7 per year that compounds over a long holding period. On income, FEDM currently yields 2.98% against 2.60% for VXUS.

Holdings Overlap

16.9%overlap

FEDM and VXUS share 149 holdings out of 7934 unique holdings combined, representing a 16.9% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in FEDMWeight in VXUSDifference
ASML:AS2.57%1.29%1.28%
AZN:LN1.62%0.71%0.91%
RY:CA1.75%0.53%1.22%
NOVN:SMProProPro
CBA:AUProProPro
NESN:SMProProPro
HSBA:LNProProPro
ENR1N:MUProProPro
ENB:AQLProProPro
CM:CAProProPro
See all 10 holdings FEDM shares with VXUS
Exact weights in each fund and the difference, for every overlapping position.
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Frequently Asked Questions

Which is cheaper, FEDM or VXUS?

FEDM has an expense ratio of 0.12% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $7 per year of difference.

Which performed better, FEDM or VXUS?

Over the past year FEDM returned +24.09% vs +27.82% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (5 years), FEDM annualized +8.81% vs +4.86% for VXUS. Past performance does not guarantee future results.

Which is riskier, FEDM or VXUS?

FEDM has been the more volatile fund at 15.7% annualized versus 15.1% for VXUS. Worst drawdown: FEDM -29.4% vs VXUS -39.9%.

Should I hold both FEDM and VXUS?

FEDM and VXUS have a monthly-return correlation of 0.96, 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 FEDM and VXUS?

FEDM and VXUS share 149 common holdings with a 16.9% weight overlap. Combined, they hold 7934 unique securities.

Which pays a higher dividend, FEDM or VXUS?

FEDM yields 2.98% while VXUS yields 2.60%, so FEDM currently pays the higher dividend yield.

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