INCM vs VXUS

INCM vs VXUS

Which is better, INCM or VXUS?

Allocation/Balanced against Large Cap Blend.

VXUS has a lower expense ratio. VXUS led over 1Y, 3Y and the full window.

Lower Fees: VXUSHigher Returns: VXUS

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

MetricINCMVXUS
Expense Ratio0.38%0.05%Best
AUM$1.8B$158.1B
Dividend Yield5.18%2.51%
Holdings3818,747
YTD Return+7.44%+12.57%Best
1Y Return+11.07%+19.71%Best
3Y Return (annualized)+11.38%+19.25%Best
5Y Return (annualized)-+8.59%
Volatility (annualized)7.2%Best12.3%
Max Drawdown-7.8%Best-13.6%
$10,000 over 3.3 years$13,869$16,964Best
Fund FamilyFranklin Templeton Investments (US)Vanguard (US)
CategoryAllocation/BalancedEquity
StyleAllocation/BalancedLarge Cap Blend
InceptionJun 6, 2023Jan 26, 2011

Not shown on this pair: Top 10 Weight.

Volatility and max drawdown, and the $10,000 over 3.3 years row, are measured over the window both funds cover: Jun 8, 2023 to Sep 15, 2026 (3.3 years).

INCM 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 3.3 years both funds cover.

INCM vs VXUS Performance

Franklin Income Focus ETF (INCM) is an ETF from Franklin Templeton Investments (US) and Vanguard Total International Stock ETF (VXUS) is an ETF from Vanguard (US). Over the past year INCM returned +11.07% while VXUS returned +19.71%. Year to date, INCM is up 7.44% versus a gain of 12.57% for VXUS.

Over three years, INCM compounded at +11.38% per year against +19.25% for VXUS.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VXUS has been the more volatile fund, with annualized monthly volatility of 12.3% compared with 7.2% for INCM. 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 -7.8% for INCM and -13.6% 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 0.79. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

INCM charges 0.38% per year while VXUS charges 0.05%. On a $10,000 position that is $38 vs $5 annually, a gap of $33 per year that compounds over a long holding period. On income, INCM currently yields 5.18% against 2.51% for VXUS.

Holdings Overlap

We hold position weights for 257 holdings in INCM and 8,082 in VXUS, totalling 58.0% and 88.8% 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, 3 positions appear in both.

3 positions in common, counted across the 257 positions we hold weights for in INCM and 8,082 in VXUS, against full books of 381 and 8,747.

Top Shared Holdings

StockWeight in INCMWeight in VXUSDifference
SHELShell Plc1.00%0.57%0.43%
SIE:SGSiemens Ag0.71%0.54%0.17%
SRESempra Common Stock0.24%0.00%0.24%

You are not choosing between two funds in isolation.

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

INCMVXUS

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, INCM or VXUS?

INCM has an expense ratio of 0.38% while VXUS charges 0.05%. VXUS is the cheaper option, by $33 a year on a $10,000 investment.

Which performed better, INCM or VXUS?

Over the past year INCM returned +11.07% vs +19.71% for VXUS, so VXUS leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, INCM or VXUS?

VXUS has been the more volatile fund at 12.3% annualized versus 7.2% for INCM. Worst drawdown: INCM -7.8% vs VXUS -13.6%.

Should I hold both INCM and VXUS?

INCM and VXUS have a monthly-return correlation of 0.79, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.

Which pays a higher dividend, INCM or VXUS?

INCM yields 5.18% while VXUS yields 2.51%, so INCM currently pays the higher dividend yield.

Is VXUS better than INCM?

VXUS has a lower expense ratio. VXUS led over 1Y, 3Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.