FEMS vs VXUS
First Trust Emerging Markets Small Cap AlphaDEX Fund 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 | FEMS | VXUS | Winner |
|---|---|---|---|
| Expense Ratio | 0.80% | 0.05% | |
| AUM | $254M | $158.1B | |
| Dividend Yield | 4.43% | 2.59% | |
| Holdings | 218 | 8,747 | |
| YTD Return | +9.51% | +15.22% | |
| 1Y Return | +11.89% | +26.86% | |
| 3Y Return (annualized) | +11.07% | +20.34% | |
| 5Y Return (annualized) | +5.67% | +9.38% | |
| Volatility (annualized) | 19.2% | 15.1% | |
| Max Drawdown | -52.3% | -39.9% | |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Feb 15, 2012 | Jan 26, 2011 |
FEMS vs VXUS Performance
First Trust Emerging Markets Small Cap AlphaDEX Fund (FEMS) 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 FEMS returned +11.89% while VXUS returned +26.86%. Year to date, FEMS is up 9.51% versus a gain of 15.22% for VXUS.
Over three years, FEMS compounded at +11.07% per year against +20.34% for VXUS; over five years the annualized figures are +5.67% and +9.38% respectively. Across the full 15-year window we track, VXUS has the edge at +4.89% annualized vs +4.63%. 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 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 -52.3% for FEMS 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 0.81. 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
FEMS and VXUS share 137 holdings out of 7935 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
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. On a $10,000 investment, that is $75 per year of difference.
Which performed better, FEMS or VXUS?
Over the past year FEMS returned +11.89% vs +26.86% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (15 years), FEMS annualized +4.63% vs +4.89% for VXUS. Past performance does not guarantee future results.
Which is riskier, FEMS or VXUS?
FEMS has been the more volatile fund at 19.2% annualized versus 15.1% 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 combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FEMS and VXUS?
FEMS and VXUS share 137 common holdings with a 0.1% weight overlap. Combined, they hold 7935 unique securities.
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.
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