LQTI vs VXUS
FT Vest Investment Grade & Target Income ETF vs Vanguard Total International Stock ETF
Quick Verdict
VXUS has a lower expense ratio. VXUS delivered stronger 1-year returns. VXUS offers more diversification with 7861 holdings.
Side-by-Side Comparison
| Metric | LQTI | VXUS | Winner |
|---|---|---|---|
| Expense Ratio | 0.65% | 0.05% | |
| AUM | $282M | $156.5B | |
| Dividend Yield | 9.06% | 2.60% | |
| Holdings | 5 | 8,747 | |
| YTD Return | -1.63% | +15.00% | |
| 1Y Return | +0.51% | +26.87% | |
| 3Y Return (annualized) | - | +19.79% | |
| 5Y Return (annualized) | - | +9.26% | |
| Volatility (annualized) | 3.6% | 15.1% | |
| Max Drawdown | -3.8% | -39.9% | |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) | |
| Category | Alternative | Equity | |
| Inception | Feb 12, 2025 | Jan 26, 2011 |
LQTI vs VXUS Performance
FT Vest Investment Grade & Target Income ETF (LQTI) is a ETF from First Trust Portfolios (US) and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year LQTI returned +0.51% while VXUS returned +26.87%. Year to date, LQTI is down 1.63% versus a gain of 15.00% for VXUS.
Risk: Volatility and Drawdowns
VXUS has been the more volatile fund, with annualized monthly volatility of 15.1% compared with 3.6% for LQTI. 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 -3.8% for LQTI 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 0.60. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
LQTI charges 0.65% per year while VXUS charges 0.05%. On a $10,000 position that is $65 vs $5 annually, a gap of $60 per year that compounds over a long holding period. On income, LQTI currently yields 9.06% against 2.60% for VXUS.
Frequently Asked Questions
Which is cheaper, LQTI or VXUS?
LQTI has an expense ratio of 0.65% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $60 per year of difference.
Which performed better, LQTI or VXUS?
Over the past year LQTI returned +0.51% vs +26.87% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (2 years), LQTI annualized +3.00% vs +4.88% for VXUS. Past performance does not guarantee future results.
Which is riskier, LQTI or VXUS?
VXUS has been the more volatile fund at 15.1% annualized versus 3.6% for LQTI. Worst drawdown: LQTI -3.8% vs VXUS -39.9%.
Should I hold both LQTI and VXUS?
LQTI and VXUS have a monthly-return correlation of 0.60, so combining them can provide real diversification depending on your allocation goals.
Which pays a higher dividend, LQTI or VXUS?
LQTI yields 9.06% while VXUS yields 2.60%, so LQTI currently pays the higher dividend yield.
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