FXB 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

MetricFXBVXUSWinner
Expense Ratio0.40%0.05%
AUM$64M$156.5B
Dividend Yield2.22%2.60%
Holdings28,747
YTD Return+1.37%+14.57%
1Y Return+2.43%+27.82%
3Y Return (annualized)+4.67%+19.27%
5Y Return (annualized)+1.41%+9.28%
Volatility (annualized)8.6%15.1%
Max Drawdown-51.3%-39.9%
Fund FamilyInvesco (US)Vanguard (US)
CategoryAlternativeEquity
InceptionJun 21, 2006Jan 26, 2011

FXB vs VXUS Performance

Invesco CurrencyShares British Pound Sterling Trust (FXB) is a ETF from Invesco (US) and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year FXB returned +2.43% while VXUS returned +27.82%. Year to date, FXB is up 1.37% versus a gain of 14.57% for VXUS.

Over three years, FXB compounded at +4.67% per year against +19.27% for VXUS; over five years the annualized figures are +1.41% and +9.28% respectively. Across the full 16-year window we track, VXUS has the edge at +4.86% annualized vs -1.20%. 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 8.6% for FXB. 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 -51.3% for FXB 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 0.66. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

FXB 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, FXB currently yields 2.22% against 2.60% for VXUS.

Frequently Asked Questions

Which is cheaper, FXB or VXUS?

FXB has an expense ratio of 0.40% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $35 per year of difference.

Which performed better, FXB or VXUS?

Over the past year FXB returned +2.43% vs +27.82% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (16 years), FXB annualized -1.20% vs +4.86% for VXUS. Past performance does not guarantee future results.

Which is riskier, FXB or VXUS?

VXUS has been the more volatile fund at 15.1% annualized versus 8.6% for FXB. Worst drawdown: FXB -51.3% vs VXUS -39.9%.

Should I hold both FXB and VXUS?

FXB and VXUS have a monthly-return correlation of 0.66, so combining them can provide real diversification depending on your allocation goals.

Which pays a higher dividend, FXB or VXUS?

FXB yields 2.22% while VXUS yields 2.60%, so VXUS currently pays the higher dividend yield.

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