MCSE vs VXUS
Franklin Sustainable International Equity 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 8,747 holdings.
Side-by-Side Comparison
| Metric | MCSE | VXUS | Winner |
|---|---|---|---|
| Expense Ratio | 0.59% | 0.05% | |
| AUM | $3M | $158.1B | |
| Dividend Yield | 3.77% | 2.59% | |
| Holdings | 28 | 8,747 | |
| YTD Return | -0.63% | +15.22% | |
| 1Y Return | +3.20% | +26.86% | |
| 3Y Return (annualized) | +1.38% | +20.34% | |
| 5Y Return (annualized) | - | +9.38% | |
| Volatility (annualized) | 19.2% | 15.1% | |
| Max Drawdown | -25.9% | -39.9% | |
| Fund Family | Franklin Templeton Investments (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Oct 31, 2022 | Jan 26, 2011 |
MCSE vs VXUS Performance
Franklin Sustainable International Equity ETF (MCSE) is a ETF from Franklin Templeton Investments (US) and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year MCSE returned +3.20% while VXUS returned +26.86%. Year to date, MCSE is down 0.63% versus a gain of 15.22% for VXUS.
Over three years, MCSE compounded at +1.38% per year against +20.34% for VXUS. Across the full 3-year window we track, MCSE has the edge at +6.41% annualized vs +4.89%. 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 15.1% 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 -25.9% for MCSE 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 0.87. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
MCSE charges 0.59% per year while VXUS charges 0.05%. On a $10,000 position that is $59 vs $5 annually, a gap of $54 per year that compounds over a long holding period. On income, MCSE currently yields 3.77% against 2.59% for VXUS.
Holdings Overlap
MCSE and VXUS share 19 holdings out of 7876 unique holdings combined, representing a 8.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, MCSE or VXUS?
MCSE has an expense ratio of 0.59% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $54 per year of difference.
Which performed better, MCSE or VXUS?
Over the past year MCSE returned +3.20% vs +26.86% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (3 years), MCSE annualized +6.41% vs +4.89% for VXUS. Past performance does not guarantee future results.
Which is riskier, MCSE or VXUS?
MCSE has been the more volatile fund at 19.2% annualized versus 15.1% for VXUS. Worst drawdown: MCSE -25.9% vs VXUS -39.9%.
Should I hold both MCSE and VXUS?
MCSE and VXUS have a monthly-return correlation of 0.87, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MCSE and VXUS?
MCSE and VXUS share 19 common holdings with a 8.2% weight overlap. Combined, they hold 7876 unique securities.
Which pays a higher dividend, MCSE or VXUS?
MCSE yields 3.77% while VXUS yields 2.59%, so MCSE currently pays the higher dividend yield.
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