FLAU vs VXUS

FLAU vs VXUS

Which is better, FLAU or VXUS?

VXUS has been ahead.

VXUS has a lower expense ratio. VXUS led over 1Y, 3Y, 5Y and the full window.

Lower Fees: VXUSHigher Returns: VXUS

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

MetricFLAUVXUS
Expense Ratio0.09%0.05%Best
AUM$229M$158.1B
Dividend Yield3.05%2.59%
Holdings1118,747
YTD Return+15.57%+16.15%Best
1Y Return+16.77%+27.58%Best
3Y Return (annualized)+15.43%+20.48%Best
5Y Return (annualized)+7.41%+9.09%Best
Volatility (annualized)20.0%15.7%Best
Max Drawdown-46.0%-39.9%Best
$10,000 over 5 years$14,296$15,450Best
Fund FamilyFranklin Templeton Investments (US)Vanguard (US)
CategoryEquityEquity
StyleLarge Cap BlendLarge Cap Blend
InceptionNov 2, 2017Jan 26, 2011

Not shown on this pair: Top 10 Weight.

Volatility and max drawdown are measured over the window both funds cover: Nov 6, 2017 to Sep 4, 2026 (8.8 years).

FLAU 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 8.8 years both funds cover.

FLAU vs VXUS Performance

Franklin FTSE Australia ETF (FLAU) is an ETF from Franklin Templeton Investments (US) and Vanguard Total International Stock ETF (VXUS) is an ETF from Vanguard (US). Over the past year FLAU returned +16.77% while VXUS returned +27.58%. Year to date, FLAU is up 15.57% versus a gain of 16.15% for VXUS.

Over three years, FLAU compounded at +15.43% per year against +20.48% for VXUS; over five years the annualized figures are +7.41% and +9.09% respectively. Across the full 9-year window we track, VXUS has the edge at +7.27% annualized vs +6.91%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

FLAU has been the more volatile fund, with annualized monthly volatility of 20.0% compared with 15.7% 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 -46.0% for FLAU 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 0.89. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

FLAU charges 0.09% per year while VXUS charges 0.05%. On a $10,000 position that is $9 vs $5 annually, a gap of $4 per year that compounds over a long holding period. On income, FLAU currently yields 3.05% against 2.59% for VXUS.

Holdings Overlap

FLAU already in VXUS86.6%

At least 86.6% of FLAU'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.

Most of FLAU is already inside VXUS. Owning both mostly buys the same companies twice.

94 positions in common, counted across the 107 positions we hold weights for in FLAU and 8,094 in VXUS, against full books of 111 and 8,747.

Top Shared Holdings

StockWeight in FLAUWeight in VXUSDifference
BHP:AUBHP Group Limited Ordinary Shares12.52%0.30%12.22%
CBA:AUPembina Pipeline Corp Cum Red Pfd Shs -A- Series -912.27%0.42%11.85%
NAB:AUNational Australia Bank Limited5.34%0.18%5.16%
ANZ:AUAustralia & New Zealand Banking Group Ltd.4.68%0.16%4.52%
WES:AUWesfarmers Ltd.4.18%0.16%4.02%
MQG:AUMacquerie Group Ltd3.74%0.13%3.61%
RIO:LNRio Tinto Plc Ordinary Shares2.60%0.22%2.38%
WDS:AUWoodside Petroleum Ltd2.53%0.08%2.45%
GMG:AUGoodman Group2.45%0.10%2.35%
WOW:AUWoolworths1.99%0.07%1.92%

86.6% of FLAU 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.

FLAUVXUS

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Frequently Asked Questions

Which is cheaper, FLAU or VXUS?

FLAU has an expense ratio of 0.09% while VXUS charges 0.05%. VXUS is the cheaper option, by $4 a year on a $10,000 investment.

Which performed better, FLAU or VXUS?

Over the past year FLAU returned +16.77% vs +27.58% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (9 years), FLAU annualized +6.91% vs +7.27% for VXUS. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, FLAU or VXUS?

FLAU has been the more volatile fund at 20.0% annualized versus 15.7% for VXUS. Worst drawdown: FLAU -46.0% vs VXUS -39.9%.

Should I hold both FLAU and VXUS?

FLAU and VXUS have a monthly-return correlation of 0.89, 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 FLAU and VXUS?

At least 86.6% of FLAU's money is in holdings VXUS also owns. Our book for VXUS is partial, so the real figure is this or higher. They hold 94 positions in common, counted across the 107 positions we hold weights for in FLAU and 8,094 in VXUS.

Which pays a higher dividend, FLAU or VXUS?

FLAU yields 3.05% while VXUS yields 2.59%, so FLAU currently pays the higher dividend yield.

Is VXUS better than FLAU?

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.