FRI 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

MetricFRIVXUSWinner
Expense Ratio0.49%0.05%
AUM$202M$156.5B
Dividend Yield2.56%2.60%
Holdings1308,747
YTD Return+18.56%+14.57%
1Y Return+22.55%+27.82%
3Y Return (annualized)+12.08%+19.27%
5Y Return (annualized)+4.76%+9.28%
Volatility (annualized)22.5%15.1%
Max Drawdown-73.3%-39.9%
Fund FamilyFirst Trust Portfolios (US)Vanguard (US)
CategoryEquityEquity
InceptionMay 8, 2007Jan 26, 2011

FRI vs VXUS Performance

First Trust S&P REIT Index Fund (FRI) 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 FRI returned +22.55% while VXUS returned +27.82%. Year to date, FRI is up 18.56% versus a gain of 14.57% for VXUS.

Over three years, FRI compounded at +12.08% per year against +19.27% for VXUS; over five years the annualized figures are +4.76% and +9.28% respectively. Across the full 16-year window we track, VXUS has the edge at +4.86% annualized vs +3.26%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

FRI has been the more volatile fund, with annualized monthly volatility of 22.5% 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 -73.3% for FRI 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 0.67. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

FRI charges 0.49% per year while VXUS charges 0.05%. On a $10,000 position that is $49 vs $5 annually, a gap of $44 per year that compounds over a long holding period. On income, FRI currently yields 2.56% against 2.60% for VXUS.

Holdings Overlap

0.1%overlap

FRI and VXUS share 3 holdings out of 7986 unique holdings combined, representing a 0.1% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in FRIWeight in VXUSDifference
IRM2.51%0.05%2.46%
EGP0.82%0.00%0.82%
MDV0.01%0.00%0.01%

Frequently Asked Questions

Which is cheaper, FRI or VXUS?

FRI has an expense ratio of 0.49% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $44 per year of difference.

Which performed better, FRI or VXUS?

Over the past year FRI returned +22.55% vs +27.82% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (16 years), FRI annualized +3.26% vs +4.86% for VXUS. Past performance does not guarantee future results.

Which is riskier, FRI or VXUS?

FRI has been the more volatile fund at 22.5% annualized versus 15.1% for VXUS. Worst drawdown: FRI -73.3% vs VXUS -39.9%.

Should I hold both FRI and VXUS?

FRI and VXUS have a monthly-return correlation of 0.67, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between FRI and VXUS?

FRI and VXUS share 3 common holdings with a 0.1% weight overlap. Combined, they hold 7986 unique securities.

Which pays a higher dividend, FRI or VXUS?

FRI yields 2.56% while VXUS yields 2.60%, so VXUS currently pays the higher dividend yield.

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