FEMS vs VXUS
First Trust Emerging Markets Small Cap AlphaDEX Fund vs Vanguard Total International Stock ETF
Which is better, FEMS or VXUS?
Small Cap Value against Large Cap Blend.
VXUS has a lower expense ratio. VXUS led over 1Y, 3Y, 5Y and the full window.
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
| Metric | FEMS | VXUS |
|---|---|---|
| Expense Ratio | 0.80% | 0.05%Best |
| AUM | $248M | $158.1B |
| Dividend Yield | 4.43% | 2.59% |
| Holdings | 218 | 8,747 |
| YTD Return | +12.47% | +16.15%Best |
| 1Y Return | +12.91% | +27.58%Best |
| 3Y Return (annualized) | +10.65% | +20.48%Best |
| 5Y Return (annualized) | +5.48% | +9.09%Best |
| Volatility (annualized) | 19.2% | 14.4%Best |
| Max Drawdown | -52.3% | -39.9%Best |
| $10,000 over 5 years | $13,057 | $15,450Best |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Small Cap Value | Large Cap Blend |
| Inception | Feb 15, 2012 | Jan 26, 2011 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Feb 17, 2012 to Sep 4, 2026 (14.5 years).
FEMS 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 14.5 years both funds cover.
FEMS vs VXUS Performance
First Trust Emerging Markets Small Cap AlphaDEX Fund (FEMS) is an ETF from First Trust Portfolios (US) and Vanguard Total International Stock ETF (VXUS) is an ETF from Vanguard (US). Over the past year FEMS returned +12.91% while VXUS returned +27.58%. Year to date, FEMS is up 12.47% versus a gain of 16.15% for VXUS.
Over three years, FEMS compounded at +10.65% per year against +20.48% for VXUS; over five years the annualized figures are +5.48% and +9.09% respectively. Across the full 15-year window we track, VXUS has the edge at +5.84% annualized vs +4.81%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FEMS has been the more volatile fund, with annualized monthly volatility of 19.2% compared with 14.4% 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 -52.3% for FEMS and -39.9% 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 0.81. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FEMS charges 0.80% per year while VXUS charges 0.05%. On a $10,000 position that is $80 vs $5 annually, a gap of $75 per year that compounds over a long holding period. On income, FEMS currently yields 4.43% against 2.59% for VXUS.
Holdings Overlap
At least 66.5% of FEMS'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.
The two portfolios partly overlap.
The two holdings books were reported 91 days apart, FEMS as of Mar 31, 2026 and VXUS as of Jun 30, 2026, so some of the difference between them is the time between the two reports rather than the funds.
140 positions in common, counted across the 203 positions we hold weights for in FEMS and 8,094 in VXUS, against full books of 218 and 8,747.
Top Shared Holdings
| Stock | Weight in FEMS | Weight in VXUS | Difference |
|---|---|---|---|
| 6442:TWEzconn Corp | 1.91% | 0.01% | 1.90% |
| TFG:THThaifoods Group Pcl | 1.36% | 0.00% | 1.36% |
| IOIP:MYIoi Properties Group Bhd | 1.35% | 0.00% | 1.35% |
| JHSF3:BVJhsf Participacoes Sa | 1.21% | 0.00% | 1.21% |
| 3715:TWDynamic Electronics Co Ltd | 1.21% | 0.00% | 1.21% |
| ADRO:IDAdaro Energy Tbk Pt | 1.13% | 0.00% | 1.13% |
| BRAP4:BVBradespar Sa Preference Shares | 1.11% | 0.00% | 1.11% |
| AADI:IDPt Adaro Andalan Indonesia Tbk | 1.10% | 0.00% | 1.10% |
| ENJSA:TREnerjisa Enerji As | 1.09% | 0.00% | 1.09% |
| ITMG:IDIndo Tambangraya Megah Tbk Pt | 0.93% | 0.00% | 0.93% |
66.5% of FEMS 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.
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Frequently Asked Questions
Which is cheaper, FEMS or VXUS?
FEMS has an expense ratio of 0.80% while VXUS charges 0.05%. VXUS is the cheaper option, by $75 a year on a $10,000 investment.
Which performed better, FEMS or VXUS?
Over the past year FEMS returned +12.91% vs +27.58% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (15 years), FEMS annualized +4.81% vs +5.84% for VXUS. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FEMS or VXUS?
FEMS has been the more volatile fund at 19.2% annualized versus 14.4% for VXUS. Worst drawdown: FEMS -52.3% vs VXUS -39.9%.
Should I hold both FEMS and VXUS?
FEMS and VXUS have a monthly-return correlation of 0.81, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between FEMS and VXUS?
At least 66.5% of FEMS's money is in holdings VXUS also owns. Our book for VXUS is partial, so the real figure is this or higher. They hold 140 positions in common, counted across the 203 positions we hold weights for in FEMS and 8,094 in VXUS.
Which pays a higher dividend, FEMS or VXUS?
FEMS yields 4.43% while VXUS yields 2.59%, so FEMS currently pays the higher dividend yield.
Is VXUS better than FEMS?
VXUS has a lower expense ratio. VXUS led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.