FXP vs VTI

Quick Verdict

VTI has a lower expense ratio. VTI delivered stronger 1-year returns. VTI offers more diversification with 2783 holdings.

Lower Fees: VTIHigher Returns: VTIMore Diversified: VTI

Side-by-Side Comparison

MetricFXPVTIWinner
Expense Ratio0.95%0.03%
AUM$6M$663.5B
Dividend Yield2.55%1.07%
Holdings63,543
YTD Return+24.80%+14.96%
1Y Return+16.66%+22.39%
3Y Return (annualized)-28.52%+21.51%
5Y Return (annualized)-19.42%+12.36%
Volatility (annualized)48.3%15.4%
Max Drawdown-99.9%-56.6%
Fund FamilyProSharesVanguard (US)
CategoryAlternativeEquity
InceptionNov 6, 2007May 24, 2001

FXP vs VTI Performance

ProShares Ultrashort FTSE China 50 (FXP) is a ETF from ProShares and Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year FXP returned +16.66% while VTI returned +22.39%. Year to date, FXP is up 24.80% versus a gain of 14.96% for VTI.

Over three years, FXP compounded at -28.52% per year against +21.51% for VTI; over five years the annualized figures are -19.42% and +12.36% respectively. Across the full 19-year window we track, VTI has the edge at +8.16% annualized vs -28.42%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

FXP has been the more volatile fund, with annualized monthly volatility of 48.3% compared with 15.4% for VTI. 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 -99.9% for FXP and -56.6% for VTI. 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 -0.38. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

FXP charges 0.95% per year while VTI charges 0.03%. On a $10,000 position that is $95 vs $3 annually, a gap of $92 per year that compounds over a long holding period. On income, FXP currently yields 2.55% against 1.07% for VTI.

Frequently Asked Questions

Which is cheaper, FXP or VTI?

FXP has an expense ratio of 0.95% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $92 per year of difference.

Which performed better, FXP or VTI?

Over the past year FXP returned +16.66% vs +22.39% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (19 years), FXP annualized -28.42% vs +8.16% for VTI. Past performance does not guarantee future results.

Which is riskier, FXP or VTI?

FXP has been the more volatile fund at 48.3% annualized versus 15.4% for VTI. Worst drawdown: FXP -99.9% vs VTI -56.6%.

Should I hold both FXP and VTI?

FXP and VTI have a monthly-return correlation of -0.38, so combining them can provide real diversification depending on your allocation goals.

Which pays a higher dividend, FXP or VTI?

FXP yields 2.55% while VTI yields 1.07%, so FXP currently pays the higher dividend yield.

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