FXAIX vs VXUS

FXAIX vs VXUS

Which is better, FXAIX or VXUS?

Each has led over a different period.

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

Lower Fees: FXAIXHigher Returns: split

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

MetricFXAIXVXUS
Expense Ratio0.02%Best0.05%
AUM$594.0B$158.1B
Dividend Yield1.06%2.51%
Holdings5078,747
YTD Price Return+11.59%+12.73%Best
1Y Price Return+17.26%+18.99%Best
3Y Price Return (annualized)+19.43%Best+15.83%
5Y Price Return (annualized)+11.35%Best+5.47%
Volatility (annualized)15.4%15.3%Best
Max Drawdown-25.4%Best-31.7%
$10,000 over 5 years$17,118Best$13,051
Fund FamilyFidelity Investments (US)Vanguard (US)
CategoryEquityEquity
StyleLarge Cap BlendLarge Cap Blend
InceptionMay 4, 2011Jan 26, 2011

Not shown on this pair: Top 10 Weight.

Returns are price returns and exclude distributions, because our data feed carries no adjusted close for FXAIX. Both funds are measured the same way, so the comparison holds. FXAIX yields 1.06% and VXUS 2.51% on top.

Volatility and max drawdown are measured over the window both funds cover: Sep 13, 2021 to Sep 9, 2026 (5 years).

FXAIX 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 5 years both funds cover. Prices exclude distributions, on both funds alike.

FXAIX vs VXUS Performance

Fidelity 500 Index Fund (FXAIX) is a mutual fund from Fidelity Investments (US) and Vanguard Total International Stock ETF (VXUS) is an ETF from Vanguard (US). Over the past year FXAIX returned +17.26% while VXUS returned +18.99%. Year to date, FXAIX is up 11.59% versus a gain of 12.73% for VXUS.

Over three years, FXAIX compounded at +19.43% per year against +15.83% for VXUS; over five years the annualized figures are +11.35% and +5.47% respectively.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

FXAIX has been the more volatile fund, with annualized monthly volatility of 15.4% compared with 15.3% 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 -25.4% for FXAIX and -31.7% 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 0.79. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

FXAIX charges 0.02% per year while VXUS charges 0.05%. On a $10,000 position that is $2 vs $5 annually, a gap of $3 per year that compounds over a long holding period. On income, FXAIX currently yields 1.06% against 2.51% for VXUS.

Structure and taxes

FXAIX is a mutual fund and VXUS is an ETF. A mutual fund prices once a day at net asset value and may carry a purchase minimum. An ETF trades through the day at whatever the market pays for it.

In a taxable account the difference that usually matters is distributions. An ETF can meet redemptions in kind, so it rarely has to sell holdings and rarely passes a capital gain to the people who held it; a mutual fund that sells holdings to meet redemptions can distribute a realised gain at year end to everyone still in the fund, whether or not they sold anything themselves. In a tax-deferred account that difference largely disappears. Both are descriptions of how the two wrappers work, not a recommendation.

Tax-loss harvesting works on either wrapper.

Holdings Overlap

FXAIX already in VXUS0.6%

At least 0.6% of FXAIX'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.

We cannot see either book well enough to say how much of this pair is duplicated.

5 positions in common, counted across the 508 positions we hold weights for in FXAIX and 8,091 in VXUS, against full books of 507 and 8,747.

Top Shared Holdings

StockWeight in FXAIXWeight in VXUSDifference
ORCLOracle Corp.0.39%0.00%0.39%
UMG:ASUniversal Music Group N.V. Universal Music Group N V0.06%0.05%0.01%
HBANHuntington Bancshares Inc./Oh0.06%0.04%0.02%
SRESempra Common Stock0.09%0.00%0.09%
HAL:MBHindustan Aeronautics Ltd0.04%0.01%0.03%

You are not choosing between two funds in isolation.

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

FXAIXVXUS

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, FXAIX or VXUS?

FXAIX has an expense ratio of 0.02% while VXUS charges 0.05%. FXAIX is the cheaper option, by $3 a year on a $10,000 investment.

Which performed better, FXAIX or VXUS?

Over the past year FXAIX returned +17.26% vs +18.99% for VXUS, so VXUS leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, FXAIX or VXUS?

FXAIX has been the more volatile fund at 15.4% annualized versus 15.3% for VXUS. Worst drawdown: FXAIX -25.4% vs VXUS -31.7%.

Should I hold both FXAIX and VXUS?

FXAIX and VXUS have a monthly-return correlation of 0.79, 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, FXAIX or VXUS?

FXAIX yields 1.06% while VXUS yields 2.51%, so VXUS currently pays the higher dividend yield.

Is it better to hold FXAIX or VXUS in a taxable account?

VXUS is an ETF and FXAIX is a mutual fund. An ETF can meet redemptions in kind, so it rarely distributes a capital gain to the people holding it. A mutual fund that sells holdings to meet redemptions can pass a realised gain to every holder at year end. In a tax-deferred account that difference largely disappears. This is information, not a recommendation.

Is VXUS better than FXAIX?

FXAIX has a lower expense ratio. FXAIX led over 3Y, 5Y and the full window, VXUS over 1Y. Which one suits a particular account depends on what it is for. This is information, not a recommendation.