FOCT vs VXUS

Quick Verdict

VXUS has a lower expense ratio. VXUS delivered stronger 1-year returns. VXUS offers more diversification with 7861 holdings.

Lower Fees: VXUSHigher Returns: VXUSMore Diversified: VXUS

Side-by-Side Comparison

MetricFOCTVXUSWinner
Expense Ratio0.85%0.05%
AUM$1.2B$156.5B
Dividend Yield0.00%2.60%
Holdings58,747
YTD Return+9.18%+14.57%
1Y Return+17.61%+27.82%
3Y Return (annualized)+11.92%+19.27%
5Y Return (annualized)+9.36%+9.28%
Volatility (annualized)10.1%15.1%
Max Drawdown-14.1%-39.9%
Fund FamilyFirst Trust Portfolios (US)Vanguard (US)
CategoryAlternativeEquity
InceptionOct 16, 2020Jan 26, 2011

FOCT vs VXUS Performance

FT Vest US Equity Buffer ETF - October (FOCT) 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 FOCT returned +17.61% while VXUS returned +27.82%. Year to date, FOCT is up 9.18% versus a gain of 14.57% for VXUS.

Over three years, FOCT compounded at +11.92% per year against +19.27% for VXUS; over five years the annualized figures are +9.36% and +9.28% respectively. Across the full 6-year window we track, FOCT has the edge at +10.68% annualized vs +4.86%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VXUS has been the more volatile fund, with annualized monthly volatility of 15.1% compared with 10.1% for FOCT. 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 -14.1% for FOCT 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

FOCT charges 0.85% per year while VXUS charges 0.05%. On a $10,000 position that is $85 vs $5 annually, a gap of $80 per year that compounds over a long holding period. On income, FOCT currently yields 0.00% against 2.60% for VXUS.

Holdings Overlap

0.0%overlap

FOCT and VXUS share 0 holdings out of 7862 unique holdings combined, representing a 0.0% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Frequently Asked Questions

Which is cheaper, FOCT or VXUS?

FOCT has an expense ratio of 0.85% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $80 per year of difference.

Which performed better, FOCT or VXUS?

Over the past year FOCT returned +17.61% vs +27.82% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (6 years), FOCT annualized +10.68% vs +4.86% for VXUS. Past performance does not guarantee future results.

Which is riskier, FOCT or VXUS?

VXUS has been the more volatile fund at 15.1% annualized versus 10.1% for FOCT. Worst drawdown: FOCT -14.1% vs VXUS -39.9%.

Should I hold both FOCT and VXUS?

FOCT 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 FOCT and VXUS?

FOCT and VXUS share 0 common holdings with a 0.0% weight overlap. Combined, they hold 7862 unique securities.

Which pays a higher dividend, FOCT or VXUS?

FOCT yields 0.00% while VXUS yields 2.60%, so VXUS currently pays the higher dividend yield.

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