FESM vs VXUS
FESM vs VXUS
Fidelity Enhanced Small Cap Core ETF vs Vanguard Total International Stock ETF
Quick Verdict
VXUS has a lower expense ratio. FESM delivered stronger 1-year returns. VXUS offers more diversification with 7861 holdings.
Side-by-Side Comparison
| Metric | FESM | VXUS | Winner |
|---|---|---|---|
| Expense Ratio | 0.28% | 0.05% | |
| AUM | $5.8B | $156.5B | |
| Dividend Yield | 0.71% | 2.60% | |
| Holdings | 625 | 8,747 | |
| YTD Return | +27.58% | +14.57% | |
| 1Y Return | +47.36% | +27.82% | |
| 3Y Return (annualized) | - | +19.27% | |
| 5Y Return (annualized) | - | +9.28% | |
| Volatility (annualized) | 19.8% | 15.1% | |
| Max Drawdown | -26.9% | -39.9% | |
| Fund Family | Fidelity Investments (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Nov 20, 2023 | Jan 26, 2011 |
FESM vs VXUS Performance
Fidelity Enhanced Small Cap Core ETF (FESM) is a ETF from Fidelity Investments (US) and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year FESM returned +47.36% while VXUS returned +27.82%. Year to date, FESM is up 27.58% versus a gain of 14.57% for VXUS.
Risk: Volatility and Drawdowns
FESM has been the more volatile fund, with annualized monthly volatility of 19.8% 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 -26.9% for FESM 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 0.62. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FESM charges 0.28% per year while VXUS charges 0.05%. On a $10,000 position that is $28 vs $5 annually, a gap of $23 per year that compounds over a long holding period. On income, FESM currently yields 0.71% against 2.60% for VXUS.
Holdings Overlap
FESM and VXUS share 10 holdings out of 8434 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in FESM | Weight in VXUS | Difference |
|---|---|---|---|
| FBK | 0.40% | 0.03% | 0.37% |
| MTX:SG | 0.32% | 0.05% | 0.27% |
| ESE | 0.14% | 0.00% | 0.14% |
| AXL | Pro | Pro | Pro |
| UUUU:CA | Pro | Pro | Pro |
| HBAN | Pro | Pro | Pro |
| SSRM:CA | Pro | Pro | Pro |
| PPTA:CA | Pro | Pro | Pro |
| SHEN | Pro | Pro | Pro |
| ASC:BM | Pro | Pro | Pro |
See all 10 holdings FESM shares with VXUS Exact weights in each fund and the difference, for every overlapping position. Get FundXLS Pro: $29/moFirst 500 subscribers, then $49/mo. Cancel anytime. | |||
Frequently Asked Questions
Which is cheaper, FESM or VXUS?
FESM has an expense ratio of 0.28% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $23 per year of difference.
Which performed better, FESM or VXUS?
Over the past year FESM returned +47.36% vs +27.82% for VXUS, so FESM leads on 1-year performance. Over the longest common window we track (3 years), FESM annualized +28.52% vs +4.86% for VXUS. Past performance does not guarantee future results.
Which is riskier, FESM or VXUS?
FESM has been the more volatile fund at 19.8% annualized versus 15.1% for VXUS. Worst drawdown: FESM -26.9% vs VXUS -39.9%.
Should I hold both FESM and VXUS?
FESM and VXUS have a monthly-return correlation of 0.62, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FESM and VXUS?
FESM and VXUS share 10 common holdings with a 0.1% weight overlap. Combined, they hold 8434 unique securities.
Which pays a higher dividend, FESM or VXUS?
FESM yields 0.71% while VXUS yields 2.60%, so VXUS currently pays the higher dividend yield.
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