FSEP vs VXUS
FT Vest US Equity Buffer ETF - September vs Vanguard Total International Stock ETF
Which is better, FSEP or VXUS?
Multi Alternative against Large Cap Blend.
VXUS has a lower expense ratio. FSEP led over 5Y, VXUS over 1Y, 3Y and the full window.
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
| Metric | FSEP | VXUS |
|---|---|---|
| Expense Ratio | 0.85% | 0.05%Best |
| AUM | $1.2B | $158.1B |
| Dividend Yield | 0.00% | 2.51% |
| Holdings | 10 | 8,747 |
| YTD Return | +10.49% | +13.64%Best |
| 1Y Return | +13.04% | +20.82%Best |
| 3Y Return (annualized) | +14.40% | +19.58%Best |
| 5Y Return (annualized) | +10.55%Best | +9.14% |
| Volatility (annualized) | 9.6%Best | 14.9% |
| Max Drawdown | -13.8%Best | -29.4% |
| $10,000 over 5 years | $16,512Best | $15,485 |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) |
| Category | Alternative | Equity |
| Style | Multi Alternative | Large Cap Blend |
| Inception | Sep 18, 2020 | Jan 26, 2011 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Sep 21, 2020 to Sep 17, 2026 (6 years).
FSEP 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 6 years both funds cover.
FSEP vs VXUS Performance
FT Vest US Equity Buffer ETF - September (FSEP) is an ETF from First Trust Portfolios (US) and Vanguard Total International Stock ETF (VXUS) is an ETF from Vanguard (US). Over the past year FSEP returned +13.04% while VXUS returned +20.82%. Year to date, FSEP is up 10.49% versus a gain of 13.64% for VXUS.
Over three years, FSEP compounded at +14.40% per year against +19.58% for VXUS; over five years the annualized figures are +10.55% and +9.14% respectively. Across the full 6-year window we track, VXUS has the edge at +11.91% annualized vs +11.61%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VXUS has been the more volatile fund, with annualized monthly volatility of 14.9% compared with 9.6% for FSEP. 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 -13.8% for FSEP and -29.4% 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 0.82. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FSEP 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, FSEP currently yields 0.00% against 2.51% for VXUS.
You are not choosing between two funds in isolation.
Whichever of FSEP and VXUS you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, FSEP or VXUS?
FSEP has an expense ratio of 0.85% while VXUS charges 0.05%. VXUS is the cheaper option, by $80 a year on a $10,000 investment.
Which performed better, FSEP or VXUS?
Over the past year FSEP returned +13.04% vs +20.82% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (6 years), FSEP annualized +11.61% vs +11.91% for VXUS. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FSEP or VXUS?
VXUS has been the more volatile fund at 14.9% annualized versus 9.6% for FSEP. Worst drawdown: FSEP -13.8% vs VXUS -29.4%.
Should I hold both FSEP and VXUS?
FSEP and VXUS have a monthly-return correlation of 0.82, 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, FSEP or VXUS?
FSEP yields 0.00% while VXUS yields 2.51%, so VXUS currently pays the higher dividend yield.
Is VXUS better than FSEP?
VXUS has a lower expense ratio. FSEP led over 5Y, VXUS over 1Y, 3Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.