HFXI vs VXUS

Quick Verdict

VXUS has a lower expense ratio. HFXI delivered stronger 1-year returns. VXUS offers more diversification with 7861 holdings.

Lower Fees: VXUSHigher Returns: HFXIMore Diversified: VXUS

Side-by-Side Comparison

MetricHFXIVXUSWinner
Expense Ratio0.20%0.05%
AUM$2.0B$156.5B
Dividend Yield3.96%2.60%
Holdings8588,747
YTD Return+16.68%+14.19%
1Y Return+31.27%+27.38%
3Y Return (annualized)+20.64%+19.53%
5Y Return (annualized)+12.08%+9.03%
Volatility (annualized)13.8%15.1%
Max Drawdown-34.2%-39.9%
Fund FamilyINDEXIQ ETF TRUSTVanguard (US)
CategoryEquityEquity
InceptionJul 22, 2015Jan 26, 2011

HFXI vs VXUS Performance

NYLI FTSE International Equity Currency Neutral ETF (HFXI) is a ETF from INDEXIQ ETF TRUST and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year HFXI returned +31.27% while VXUS returned +27.38%. Year to date, HFXI is up 16.68% versus a gain of 14.19% for VXUS.

Over three years, HFXI compounded at +20.64% per year against +19.53% for VXUS; over five years the annualized figures are +12.08% and +9.03% respectively. Across the full 11-year window we track, HFXI has the edge at +7.89% annualized vs +4.83%. 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 13.8% for HFXI. 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 -34.2% for HFXI 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 0.96. They move almost in lockstep, so holding both mostly duplicates the same exposure.

Fees and Cost Over Time

HFXI charges 0.20% per year while VXUS charges 0.05%. On a $10,000 position that is $20 vs $5 annually, a gap of $15 per year that compounds over a long holding period. On income, HFXI currently yields 3.96% against 2.60% for VXUS.

Holdings Overlap

36.1%overlap

HFXI and VXUS share 534 holdings out of 8086 unique holdings combined, representing a 36.1% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in HFXIWeight in VXUSDifference
ASML:AS2.12%1.29%0.83%
000660:KR1.45%0.90%0.55%
ROG:SM1.30%0.75%0.55%
NOVN:SMProProPro
AZN:LNProProPro
HSBA:LNProProPro
NESN:SMProProPro
SHEL:LNProProPro
CBA:AUProProPro
8306:JPProProPro
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Frequently Asked Questions

Which is cheaper, HFXI or VXUS?

HFXI has an expense ratio of 0.20% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $15 per year of difference.

Which performed better, HFXI or VXUS?

Over the past year HFXI returned +31.27% vs +27.38% for VXUS, so HFXI leads on 1-year performance. Over the longest common window we track (11 years), HFXI annualized +7.89% vs +4.83% for VXUS. Past performance does not guarantee future results.

Which is riskier, HFXI or VXUS?

VXUS has been the more volatile fund at 15.1% annualized versus 13.8% for HFXI. Worst drawdown: HFXI -34.2% vs VXUS -39.9%.

Should I hold both HFXI and VXUS?

HFXI and VXUS have a monthly-return correlation of 0.96, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.

What is the holdings overlap between HFXI and VXUS?

HFXI and VXUS share 534 common holdings with a 36.1% weight overlap. Combined, they hold 8086 unique securities.

Which pays a higher dividend, HFXI or VXUS?

HFXI yields 3.96% while VXUS yields 2.60%, so HFXI currently pays the higher dividend yield.

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