MSFO vs VXUS

Quick Verdict

VXUS has a lower expense ratio. VXUS delivered stronger 1-year returns. VXUS offers more diversification with 7861 holdings.

Lower Fees: VXUSHigher Returns: VXUSMore Diversified: VXUS

Side-by-Side Comparison

MetricMSFOVXUSWinner
Expense Ratio1.07%0.05%
AUM$100M$156.5B
Dividend Yield42.88%2.60%
Holdings158,747
YTD Return+3.58%+14.57%
1Y Return-2.58%+27.82%
3Y Return (annualized)+15.57%+19.27%
5Y Return (annualized)-+9.28%
Volatility (annualized)23.7%15.1%
Max Drawdown-29.7%-39.9%
Fund FamilyYieldMax ETFVanguard (US)
CategoryAlternativeEquity
InceptionAug 24, 2023Jan 26, 2011

MSFO vs VXUS Performance

YieldMax Microsoft Option Income Strategy ETF (MSFO) is a ETF from YieldMax ETF and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year MSFO returned -2.58% while VXUS returned +27.82%. Year to date, MSFO is up 3.58% versus a gain of 14.57% for VXUS.

Over three years, MSFO compounded at +15.57% per year against +19.27% for VXUS. Across the full 3-year window we track, MSFO has the edge at +15.57% annualized vs +4.86%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

MSFO has been the more volatile fund, with annualized monthly volatility of 23.7% 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 -29.7% for MSFO 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 0.21. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

MSFO charges 1.07% per year while VXUS charges 0.05%. On a $10,000 position that is $107 vs $5 annually, a gap of $102 per year that compounds over a long holding period. On income, MSFO currently yields 42.88% against 2.60% for VXUS.

Holdings Overlap

0.0%overlap

MSFO and VXUS share 0 holdings out of 7863 unique holdings combined, representing a 0.0% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Frequently Asked Questions

Which is cheaper, MSFO or VXUS?

MSFO has an expense ratio of 1.07% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $102 per year of difference.

Which performed better, MSFO or VXUS?

Over the past year MSFO returned -2.58% vs +27.82% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (3 years), MSFO annualized +15.57% vs +4.86% for VXUS. Past performance does not guarantee future results.

Which is riskier, MSFO or VXUS?

MSFO has been the more volatile fund at 23.7% annualized versus 15.1% for VXUS. Worst drawdown: MSFO -29.7% vs VXUS -39.9%.

Should I hold both MSFO and VXUS?

MSFO and VXUS have a monthly-return correlation of 0.21, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between MSFO and VXUS?

MSFO and VXUS share 0 common holdings with a 0.0% weight overlap. Combined, they hold 7863 unique securities.

Which pays a higher dividend, MSFO or VXUS?

MSFO yields 42.88% while VXUS yields 2.60%, so MSFO currently pays the higher dividend yield.

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