FEDM vs VXUS

FEDM vs VXUS

Which is better, FEDM or VXUS?

Nearly the same fund. VXUS costs less.

VXUS has a lower expense ratio. VXUS led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.96.

Lower Fees: VXUSHigher Returns: VXUS

MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.

Side-by-Side Comparison

MetricFEDMVXUS
Expense Ratio0.12%0.05%Best
AUM$85M$158.1B
Dividend Yield2.87%2.59%
Holdings2658,747
YTD Return+13.61%+15.57%Best
1Y Return+23.48%+27.46%Best
3Y Return (annualized)+17.55%+20.30%Best
5Y Return (annualized)+8.82%+8.96%Best
Volatility (annualized)15.6%15.1%Best
Max Drawdown-29.4%-28.9%Best
$10,000 over 5 years$15,260$15,358Best
Fund FamilyNorthern Trust Asset ManagementVanguard (US)
CategoryEquityEquity
StyleLarge Cap BlendLarge Cap Blend
InceptionSep 20, 2021Jan 26, 2011

Not shown on this pair: Top 10 Weight.

Volatility and max drawdown are measured over the window both funds cover: Sep 21, 2021 to Sep 3, 2026 (5 years).

FEDM vs VXUS growth

Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 5 years both funds cover.

FEDM vs VXUS Performance

Northern Trust ESG & Climate Developed Markets ex-US Core ETF (FEDM) is an ETF from Northern Trust Asset Management and Vanguard Total International Stock ETF (VXUS) is an ETF from Vanguard (US). Over the past year FEDM returned +23.48% while VXUS returned +27.46%. Year to date, FEDM is up 13.61% versus a gain of 15.57% for VXUS.

Over three years, FEDM compounded at +17.55% per year against +20.30% for VXUS; over five years the annualized figures are +8.82% and +8.96% respectively.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

FEDM 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 -29.4% for FEDM and -28.9% for VXUS. Drawdown depth is what each fund did in the worst stretch of the window measured above.

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 2.87% against 2.59% for VXUS.

Holdings Overlap

FEDM already in VXUS70.5%

At least 70.5% of FEDM's money is in holdings VXUS also owns.

Stated as a floor: for VXUS, our book for it covers 87.7% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.

Most of FEDM is already inside VXUS. Owning both mostly buys the same companies twice.

152 positions in common, counted across the 218 positions we hold weights for in FEDM and 8,094 in VXUS, against full books of 265 and 8,747.

Top Shared Holdings

StockWeight in FEDMWeight in VXUSDifference
ASML:ASASML HOLDING NV3.09%1.70%1.39%
RY:CARoyal Bank Of Canada1.95%0.64%1.31%
SIE:SGSiemens Ag1.57%0.52%1.05%
NOVN:SMNovartis Ag – Class N1.44%0.65%0.79%
SCHN:PASchneider Electric Se1.54%0.39%1.15%
AZN:LNAstraZeneca PLC1.20%0.62%0.58%
BBVA:MABanco Bilbao Vizcaya Argentaria S.A. Reg Shs1.50%0.31%1.19%
CBA:AUPembina Pipeline Corp Cum Red Pfd Shs -A- Series -91.32%0.42%0.90%
6857:JPAdvantest Corp1.37%0.33%1.04%
HSBA:LNHsbc Securities Inc0.94%0.72%0.22%

70.5% of FEDM is already inside VXUS.

You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.

FEDMVXUS

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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, by $7 a year on a $10,000 investment.

Which performed better, FEDM or VXUS?

Over the past year FEDM returned +23.48% vs +27.46% for VXUS, so VXUS leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, FEDM or VXUS?

FEDM has been the more volatile fund at 15.6% annualized versus 15.1% for VXUS. Worst drawdown: FEDM -29.4% vs VXUS -28.9%.

Should I hold both FEDM and VXUS?

FEDM and VXUS have a monthly-return correlation of 0.96, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.

What is the holdings overlap between FEDM and VXUS?

At least 70.5% of FEDM's money is in holdings VXUS also owns. Our book for VXUS is partial, so the real figure is this or higher. They hold 152 positions in common, counted across the 218 positions we hold weights for in FEDM and 8,094 in VXUS.

Which pays a higher dividend, FEDM or VXUS?

FEDM yields 2.87% while VXUS yields 2.59%, so FEDM currently pays the higher dividend yield.

Is VXUS better than FEDM?

VXUS has a lower expense ratio. VXUS led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.96. Which one suits a particular account depends on what it is for. This is information, not a recommendation.