FLHY vs VXUS

FLHY vs VXUS

Which is better, FLHY or VXUS?

High Yield Bond against Large Cap Blend.

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

MetricFLHYVXUS
Expense Ratio0.40%0.05%Best
AUM$1.3B$158.1B
Dividend Yield6.47%2.51%
Holdings2928,747
YTD Return-2.38%+13.03%Best
1Y Return-1.27%+20.20%Best
3Y Return (annualized)+6.71%+19.23%Best
5Y Return (annualized)+3.18%+8.73%Best
Volatility (annualized)8.2%Best16.0%
Max Drawdown-22.6%Best-35.6%
$10,000 over 5 years$11,694$15,197Best
Fund FamilyFranklin Templeton Investments (US)Vanguard (US)
CategoryFixed IncomeEquity
StyleHigh Yield BondLarge Cap Blend
InceptionMay 30, 2018Jan 26, 2011

Not shown on this pair: Top 10 Weight.

Volatility and max drawdown are measured over the window both funds cover: Jun 1, 2018 to Sep 14, 2026 (8.3 years).

FLHY 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 8.3 years both funds cover.

FLHY vs VXUS Performance

Franklin High Yield Corporate ETF (FLHY) 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 FLHY returned -1.27% while VXUS returned +20.20%. Year to date, FLHY is down 2.38% versus a gain of 13.03% for VXUS.

Over three years, FLHY compounded at +6.71% per year against +19.23% for VXUS; over five years the annualized figures are +3.18% and +8.73% respectively. Across the full 8-year window we track, VXUS has the edge at +7.37% annualized vs +5.01%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VXUS has been the more volatile fund, with annualized monthly volatility of 16.0% compared with 8.2% for FLHY. 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 -22.6% for FLHY and -35.6% 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 0.81. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

FLHY charges 0.40% per year while VXUS charges 0.05%. On a $10,000 position that is $40 vs $5 annually, a gap of $35 per year that compounds over a long holding period. On income, FLHY currently yields 6.47% against 2.51% for VXUS.

Holdings Overlap

We hold position weights for 187 holdings in FLHY and 8,082 in VXUS, totalling 63.1% and 88.8% of the two funds. The two books name no position in common, so there is no overlap percentage to show.

0 positions in common, counted across the 187 positions we hold weights for in FLHY and 8,082 in VXUS, against full books of 292 and 8,747.

You are not choosing between two funds in isolation.

Whichever of FLHY and VXUS you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.

FLHYVXUS

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, FLHY or VXUS?

FLHY has an expense ratio of 0.40% while VXUS charges 0.05%. VXUS is the cheaper option, by $35 a year on a $10,000 investment.

Which performed better, FLHY or VXUS?

Over the past year FLHY returned -1.27% vs +20.20% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (8 years), FLHY annualized +5.01% vs +7.37% for VXUS. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, FLHY or VXUS?

VXUS has been the more volatile fund at 16.0% annualized versus 8.2% for FLHY. Worst drawdown: FLHY -22.6% vs VXUS -35.6%.

Should I hold both FLHY and VXUS?

FLHY and VXUS have a monthly-return correlation of 0.81, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.

Which pays a higher dividend, FLHY or VXUS?

FLHY yields 6.47% while VXUS yields 2.51%, so FLHY currently pays the higher dividend yield.

Is VXUS better than FLHY?

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.