FFA vs VXUS

FFA vs VXUS
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Quick Verdict

VXUS has a lower expense ratio. VXUS delivered stronger 1-year returns. VXUS offers more diversification with 8,747 holdings.

Lower Fees: VXUSHigher Returns: VXUSMore Diversified: VXUS

Side-by-Side Comparison

MetricFFAVXUSWinner
Expense Ratio1.13%0.05%
AUM$521M$158.1B
Dividend Yield6.19%2.59%
Holdings868,747
YTD Return+11.66%+15.22%
1Y Return+19.75%+26.86%
3Y Return (annualized)+17.89%+20.34%
5Y Return (annualized)+9.76%+9.38%
Volatility (annualized)16.6%15.1%
Max Drawdown-67.6%-39.9%
Fund FamilyFirst Trust Portfolios (US)Vanguard (US)
CategoryAlternativeEquity
InceptionAug 26, 2004Jan 26, 2011

FFA vs VXUS Performance

First Trust Enhanced Equity Income Fund (FFA) 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 FFA returned +19.75% while VXUS returned +26.86%. Year to date, FFA is up 11.66% versus a gain of 15.22% for VXUS.

Over three years, FFA compounded at +17.89% per year against +20.34% for VXUS; over five years the annualized figures are +9.76% and +9.38% respectively. Across the full 16-year window we track, VXUS has the edge at +4.89% annualized vs +2.55%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

FFA has been the more volatile fund, with annualized monthly volatility of 16.6% 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 -67.6% for FFA 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

FFA charges 1.13% per year while VXUS charges 0.05%. On a $10,000 position that is $113 vs $5 annually, a gap of $108 per year that compounds over a long holding period. On income, FFA currently yields 6.19% against 2.59% for VXUS.

Holdings Overlap

0.1%overlap

FFA and VXUS share 2 holdings out of 7928 unique holdings combined, representing a 0.1% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in FFAWeight in VXUSDifference
HBAN1.36%0.05%1.31%
ORCL0.65%0.00%0.65%

Frequently Asked Questions

Which is cheaper, FFA or VXUS?

FFA has an expense ratio of 1.13% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $108 per year of difference.

Which performed better, FFA or VXUS?

Over the past year FFA returned +19.75% vs +26.86% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (16 years), FFA annualized +2.55% vs +4.89% for VXUS. Past performance does not guarantee future results.

Which is riskier, FFA or VXUS?

FFA has been the more volatile fund at 16.6% annualized versus 15.1% for VXUS. Worst drawdown: FFA -67.6% vs VXUS -39.9%.

Should I hold both FFA and VXUS?

FFA 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 FFA and VXUS?

FFA and VXUS share 2 common holdings with a 0.1% weight overlap. Combined, they hold 7928 unique securities.

Which pays a higher dividend, FFA or VXUS?

FFA yields 6.19% while VXUS yields 2.59%, so FFA currently pays the higher dividend yield.

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