FEP vs VXUS

FEP vs VXUS

Which is better, FEP or VXUS?

Mid Cap Blend against Large Cap Blend.

VXUS has a lower expense ratio. FEP led over 3Y, 5Y and the full window, VXUS over 1Y. The two have moved almost in lockstep, correlation 0.93.

Lower Fees: VXUSHigher Returns: split

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

MetricFEPVXUS
Expense Ratio0.80%0.05%Best
AUM$539M$158.1B
Dividend Yield2.72%2.59%
Holdings4148,747
YTD Return+12.69%+16.15%Best
1Y Return+26.16%+27.58%Best
3Y Return (annualized)+25.44%Best+20.48%
5Y Return (annualized)+10.20%Best+9.09%
Volatility (annualized)19.0%15.1%Best
Max Drawdown-48.6%-39.9%Best
$10,000 over 5 years$16,252Best$15,450
Fund FamilyFirst Trust Portfolios (US)Vanguard (US)
CategoryEquityEquity
StyleMid Cap BlendLarge Cap Blend
InceptionApr 18, 2011Jan 26, 2011

Not shown on this pair: Top 10 Weight.

Volatility and max drawdown are measured over the window both funds cover: Apr 26, 2011 to Sep 4, 2026 (15.4 years).

FEP 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 15.4 years both funds cover.

FEP vs VXUS Performance

First Trust Europe AlphaDEX Fund (FEP) 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 FEP returned +26.16% while VXUS returned +27.58%. Year to date, FEP is up 12.69% versus a gain of 16.15% for VXUS.

Over three years, FEP compounded at +25.44% per year against +20.48% for VXUS; over five years the annualized figures are +10.20% and +9.09% respectively. Across the full 15-year window we track, FEP has the edge at +5.76% annualized vs +4.55%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

FEP has been the more volatile fund, with annualized monthly volatility of 19.0% 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 -48.6% for FEP 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 0.93. They move almost in lockstep, so holding both mostly duplicates the same exposure.

Fees and Cost Over Time

FEP 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, FEP currently yields 2.72% against 2.59% for VXUS.

Holdings Overlap

FEP already in VXUS55.5%

At least 55.5% of FEP'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.

114 positions in common, counted across the 200 positions we hold weights for in FEP and 8,094 in VXUS, against full books of 414 and 8,747.

Top Shared Holdings

StockWeight in FEPWeight in VXUSDifference
ASML:ASASML Holding NV - Ordinary Shares0.60%1.70%1.10%
NDA:BEAurubis Ag0.97%0.14%0.83%
ABDN:LNAbrdn Plc1.04%0.01%1.03%
GLB:IEGlanbia Plc1.01%0.01%1.00%
III:LN3i Group Plc0.93%0.07%0.86%
BLND:LNBritish Land Co Plc/the0.98%0.01%0.97%
LOIM:PAKlpierre Sa0.94%0.02%0.92%
MT:LUArcelormittal0.90%0.06%0.84%
PRX:ASProsus N V0.81%0.12%0.69%
HOTG:MUHochtief Ag0.90%0.02%0.88%

55.5% of FEP 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.

FEPVXUS

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Frequently Asked Questions

Which is cheaper, FEP or VXUS?

FEP 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, FEP or VXUS?

Over the past year FEP returned +26.16% vs +27.58% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (15 years), FEP annualized +5.76% vs +4.55% for VXUS. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, FEP or VXUS?

FEP has been the more volatile fund at 19.0% annualized versus 15.1% for VXUS. Worst drawdown: FEP -48.6% vs VXUS -39.9%.

Should I hold both FEP and VXUS?

FEP and VXUS have a monthly-return correlation of 0.93, 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 FEP and VXUS?

At least 55.5% of FEP's money is in holdings VXUS also owns. Our book for VXUS is partial, so the real figure is this or higher. They hold 114 positions in common, counted across the 200 positions we hold weights for in FEP and 8,094 in VXUS.

Which pays a higher dividend, FEP or VXUS?

FEP yields 2.72% while VXUS yields 2.59%, so FEP currently pays the higher dividend yield.

Is VXUS better than FEP?

VXUS has a lower expense ratio. FEP led over 3Y, 5Y and the full window, VXUS over 1Y. The two have moved almost in lockstep, correlation 0.93. Which one suits a particular account depends on what it is for. This is information, not a recommendation.