FZROX vs VXUS
Fidelity ZERO Total Market Index Fund vs Vanguard Total International Stock ETF
Quick Verdict
FZROX has a lower expense ratio. VXUS delivered stronger 1-year returns. VXUS offers more diversification with 8,747 holdings.
Side-by-Side Comparison
| Metric | FZROX | VXUS | Winner |
|---|---|---|---|
| Expense Ratio | 0.00% | 0.05% | |
| AUM | $3.1B | $158.1B | |
| Dividend Yield | 0.93% | 2.59% | |
| Holdings | 2,533 | 8,747 | |
| YTD Return | +14.89% | +15.22% | |
| 1Y Return | +21.23% | +26.86% | |
| 3Y Return (annualized) | +20.67% | +20.34% | |
| 5Y Return (annualized) | +11.32% | +9.38% | |
| Volatility (annualized) | 15.7% | 15.1% | |
| Max Drawdown | -26.9% | -39.9% | |
| Fund Family | Fidelity Investments (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Aug 2, 2018 | Jan 26, 2011 |
FZROX vs VXUS Performance
Fidelity ZERO Total Market Index Fund (FZROX) is a mutual fund from Fidelity Investments (US) and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year FZROX returned +21.23% while VXUS returned +26.86%. Year to date, FZROX is up 14.89% versus a gain of 15.22% for VXUS.
Over three years, FZROX compounded at +20.67% per year against +20.34% for VXUS; over five years the annualized figures are +11.32% and +9.38% respectively. Across the full 5-year window we track, FZROX has the edge at +11.32% annualized vs +4.89%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FZROX has been the more volatile fund, with annualized monthly volatility of 15.7% 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 -26.9% for FZROX 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 0.73. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FZROX charges 0.00% per year while VXUS charges 0.05%. On a $10,000 position that is $0 vs $5 annually, a gap of $5 per year that compounds over a long holding period. On income, FZROX currently yields 0.93% against 2.59% for VXUS.
Holdings Overlap
FZROX and VXUS share 23 holdings out of 10360 unique holdings combined, representing a 0.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FZROX or VXUS?
FZROX has an expense ratio of 0.00% while VXUS charges 0.05%. FZROX is the cheaper option. On a $10,000 investment, that is $5 per year of difference.
Which performed better, FZROX or VXUS?
Over the past year FZROX returned +21.23% vs +26.86% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (5 years), FZROX annualized +11.32% vs +4.89% for VXUS. Past performance does not guarantee future results.
Which is riskier, FZROX or VXUS?
FZROX has been the more volatile fund at 15.7% annualized versus 15.1% for VXUS. Worst drawdown: FZROX -26.9% vs VXUS -39.9%.
Should I hold both FZROX and VXUS?
FZROX and VXUS have a monthly-return correlation of 0.73, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FZROX and VXUS?
FZROX and VXUS share 23 common holdings with a 0.2% weight overlap. Combined, they hold 10360 unique securities.
Which pays a higher dividend, FZROX or VXUS?
FZROX yields 0.93% while VXUS yields 2.59%, so VXUS currently pays the higher dividend yield.
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