MCSE vs VTI
Franklin Sustainable International Equity ETF vs Vanguard Morningstar Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. VTI delivered stronger 1-year returns. VTI offers more diversification with 3,543 holdings.
Side-by-Side Comparison
| Metric | MCSE | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.59% | 0.03% | |
| AUM | $3M | $666.9B | |
| Dividend Yield | 3.77% | 1.07% | |
| Holdings | 28 | 3,543 | |
| YTD Return | -0.63% | +13.38% | |
| 1Y Return | +3.20% | +21.12% | |
| 3Y Return (annualized) | +1.38% | +21.85% | |
| 5Y Return (annualized) | - | +12.44% | |
| Volatility (annualized) | 19.2% | 15.3% | |
| Max Drawdown | -25.9% | -56.6% | |
| Fund Family | Franklin Templeton Investments (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Oct 31, 2022 | May 24, 2001 |
MCSE vs VTI Performance
Franklin Sustainable International Equity ETF (MCSE) is a ETF from Franklin Templeton Investments (US) and Vanguard Morningstar Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year MCSE returned +3.20% while VTI returned +21.12%. Year to date, MCSE is down 0.63% versus a gain of 13.38% for VTI.
Over three years, MCSE compounded at +1.38% per year against +21.85% for VTI. Across the full 3-year window we track, VTI has the edge at +8.10% annualized vs +6.41%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
MCSE has been the more volatile fund, with annualized monthly volatility of 19.2% compared with 15.3% for VTI. 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 -25.9% for MCSE and -56.6% for VTI. 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
MCSE charges 0.59% per year while VTI charges 0.03%. On a $10,000 position that is $59 vs $3 annually, a gap of $56 per year that compounds over a long holding period. On income, MCSE currently yields 3.77% against 1.07% for VTI.
Holdings Overlap
MCSE and VTI share 3 holdings out of 2810 unique holdings combined, representing a 0.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, MCSE or VTI?
MCSE has an expense ratio of 0.59% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $56 per year of difference.
Which performed better, MCSE or VTI?
Over the past year MCSE returned +3.20% vs +21.12% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (3 years), MCSE annualized +6.41% vs +8.10% for VTI. Past performance does not guarantee future results.
Which is riskier, MCSE or VTI?
MCSE has been the more volatile fund at 19.2% annualized versus 15.3% for VTI. Worst drawdown: MCSE -25.9% vs VTI -56.6%.
Should I hold both MCSE and VTI?
MCSE and VTI 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 MCSE and VTI?
MCSE and VTI share 3 common holdings with a 0.4% weight overlap. Combined, they hold 2810 unique securities.
Which pays a higher dividend, MCSE or VTI?
MCSE yields 3.77% while VTI yields 1.07%, so MCSE currently pays the higher dividend yield.
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