MFEM vs VXUS
PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF vs Vanguard Total International Stock ETF
Quick Verdict
VXUS has a lower expense ratio. MFEM delivered stronger 1-year returns. VXUS offers more diversification with 7861 holdings.
Side-by-Side Comparison
| Metric | MFEM | VXUS | Winner |
|---|---|---|---|
| Expense Ratio | 0.49% | 0.05% | |
| AUM | $142M | $156.5B | |
| Dividend Yield | 2.14% | 2.60% | |
| Holdings | 730 | 8,747 | |
| YTD Return | +20.36% | +14.07% | |
| 1Y Return | +33.36% | +27.24% | |
| 3Y Return (annualized) | +19.25% | +19.27% | |
| 5Y Return (annualized) | +8.20% | +9.14% | |
| Volatility (annualized) | 17.6% | 15.1% | |
| Max Drawdown | -45.3% | -39.9% | |
| Fund Family | PIMCO (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Aug 31, 2017 | Jan 26, 2011 |
MFEM vs VXUS Performance
PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF (MFEM) is a ETF from PIMCO (US) and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year MFEM returned +33.36% while VXUS returned +27.24%. Year to date, MFEM is up 20.36% versus a gain of 14.07% for VXUS.
Over three years, MFEM compounded at +19.25% per year against +19.27% for VXUS; over five years the annualized figures are +8.20% and +9.14% respectively. Across the full 9-year window we track, MFEM has the edge at +6.72% annualized vs +4.83%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
MFEM has been the more volatile fund, with annualized monthly volatility of 17.6% 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 -45.3% for MFEM 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 0.92. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
MFEM charges 0.49% per year while VXUS charges 0.05%. On a $10,000 position that is $49 vs $5 annually, a gap of $44 per year that compounds over a long holding period. On income, MFEM currently yields 2.14% against 2.60% for VXUS.
Holdings Overlap
MFEM and VXUS share 513 holdings out of 8052 unique holdings combined, representing a 10.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, MFEM or VXUS?
MFEM has an expense ratio of 0.49% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $44 per year of difference.
Which performed better, MFEM or VXUS?
Over the past year MFEM returned +33.36% vs +27.24% for VXUS, so MFEM leads on 1-year performance. Over the longest common window we track (9 years), MFEM annualized +6.72% vs +4.83% for VXUS. Past performance does not guarantee future results.
Which is riskier, MFEM or VXUS?
MFEM has been the more volatile fund at 17.6% annualized versus 15.1% for VXUS. Worst drawdown: MFEM -45.3% vs VXUS -39.9%.
Should I hold both MFEM and VXUS?
MFEM and VXUS have a monthly-return correlation of 0.92, 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 MFEM and VXUS?
MFEM and VXUS share 513 common holdings with a 10.0% weight overlap. Combined, they hold 8052 unique securities.
Which pays a higher dividend, MFEM or VXUS?
MFEM yields 2.14% while VXUS yields 2.60%, so VXUS currently pays the higher dividend yield.
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