GEM vs VXUS

GEM vs VXUS

Which is better, GEM or VXUS?

Each has led over a different period.

VXUS has a lower expense ratio. GEM led over 1Y, 3Y and the full window, VXUS over 5Y. The two have moved almost in lockstep, correlation 0.90.

Lower Fees: VXUSHigher 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

MetricGEMVXUS
Expense Ratio0.35%0.05%Best
AUM$1.8B$158.1B
Dividend Yield1.87%2.51%
Holdings7808,747
YTD Return+22.67%Best+14.83%
1Y Return+36.00%Best+24.27%
3Y Return (annualized)+22.36%Best+19.98%
5Y Return (annualized)+8.14%+9.07%Best
Volatility (annualized)16.5%14.8%Best
Max Drawdown-37.0%Best-39.9%
$10,000 over 5 years$14,789$15,436Best
Fund FamilyGoldman Sachs Asset ManagementVanguard (US)
CategoryEquityEquity
StyleLarge Cap BlendLarge Cap Blend
InceptionSep 25, 2015Jan 26, 2011

Not shown on this pair: Top 10 Weight.

Volatility and max drawdown are measured over the window both funds cover: Sep 29, 2015 to Sep 9, 2026 (10.9 years).

GEM 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 10.9 years both funds cover.

GEM vs VXUS Performance

Goldman Sachs ActiveBeta Emerging Markets Equity ETF (GEM) is an ETF from Goldman Sachs Asset Management and Vanguard Total International Stock ETF (VXUS) is an ETF from Vanguard (US). Over the past year GEM returned +36.00% while VXUS returned +24.27%. Year to date, GEM is up 22.67% versus a gain of 14.83% for VXUS.

Over three years, GEM compounded at +22.36% per year against +19.98% for VXUS; over five years the annualized figures are +8.14% and +9.07% respectively. Across the full 11-year window we track, GEM has the edge at +9.41% annualized vs +8.26%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

GEM has been the more volatile fund, with annualized monthly volatility of 16.5% compared with 14.8% 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 -37.0% for GEM and -39.9% 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 0.90. They move almost in lockstep, so holding both mostly duplicates the same exposure.

Fees and Cost Over Time

GEM charges 0.35% per year while VXUS charges 0.05%. On a $10,000 position that is $35 vs $5 annually, a gap of $30 per year that compounds over a long holding period. On income, GEM currently yields 1.87% against 2.51% for VXUS.

Holdings Overlap

We hold position weights for 723 holdings in GEM and 8,091 in VXUS, totalling 93.2% and 87.7% of the two funds. Neither is a share of a fund we can divide by, so no overlap percentage is shown here. Within what we can see, 528 positions appear in both.

528 positions in common, counted across the 723 positions we hold weights for in GEM and 8,091 in VXUS, against full books of 780 and 8,747.

Top Shared Holdings

StockWeight in GEMWeight in VXUSDifference
000660:KRSk Hynix Inc3.99%2.17%1.82%
9988:HKAlibaba Group Holding Limited Ordinary Shares1.86%0.49%1.37%
2454:TWMediatek Inc Common Stock TWD10.01.40%0.44%0.96%
2308:TWDelta Electronics Inc0.71%0.27%0.44%
2317:TWHon Hai Precision Industry Co Ltd0.52%0.22%0.30%
HDFCBANK:MBHDFC Bank Ltd0.50%0.21%0.29%
ICICIBANK:MBIcici Bank Ltd0.50%0.17%0.33%
009150:KRSamsung Electro-Mechanics Co Ltd0.49%0.18%0.31%
RELIANCE:MBReliance Industries Ltd0.42%0.20%0.22%
1398:HKIcbc Ltd.0.36%0.15%0.21%

You are not choosing between two funds in isolation.

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

GEMVXUS

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, GEM or VXUS?

GEM has an expense ratio of 0.35% while VXUS charges 0.05%. VXUS is the cheaper option, by $30 a year on a $10,000 investment.

Which performed better, GEM or VXUS?

Over the past year GEM returned +36.00% vs +24.27% for VXUS, so GEM leads on 1-year performance. Over the longest common window we track (11 years), GEM annualized +9.41% vs +8.26% for VXUS. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, GEM or VXUS?

GEM has been the more volatile fund at 16.5% annualized versus 14.8% for VXUS. Worst drawdown: GEM -37.0% vs VXUS -39.9%.

Should I hold both GEM and VXUS?

GEM and VXUS have a monthly-return correlation of 0.90, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.

Which pays a higher dividend, GEM or VXUS?

GEM yields 1.87% while VXUS yields 2.51%, so VXUS currently pays the higher dividend yield.

Is VXUS better than GEM?

VXUS has a lower expense ratio. GEM led over 1Y, 3Y and the full window, VXUS over 5Y. The two have moved almost in lockstep, correlation 0.90. Which one suits a particular account depends on what it is for. This is information, not a recommendation.