Quick Verdict

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

Lower Fees: VXUSHigher Returns: NXTGMore Diversified: VXUS

Side-by-Side Comparison

MetricNXTGVXUSWinner
Expense Ratio0.70%0.05%
AUM$539M$156.5B
Dividend Yield1.15%2.60%
Holdings1088,747
YTD Return+40.42%+14.57%
1Y Return+58.01%+27.82%
3Y Return (annualized)+31.79%+19.27%
5Y Return (annualized)+16.69%+9.28%
Volatility (annualized)17.3%15.1%
Max Drawdown-33.6%-39.9%
Fund FamilyFirst Trust Portfolios (US)Vanguard (US)
CategoryEquityEquity
InceptionFeb 17, 2011Jan 26, 2011

NXTG vs VXUS Performance

First Trust Indxx NextG ETF (NXTG) 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 NXTG returned +58.01% while VXUS returned +27.82%. Year to date, NXTG is up 40.42% versus a gain of 14.57% for VXUS.

Over three years, NXTG compounded at +31.79% per year against +19.27% for VXUS; over five years the annualized figures are +16.69% and +9.28% respectively. Across the full 16-year window we track, NXTG has the edge at +12.01% annualized vs +4.86%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

NXTG has been the more volatile fund, with annualized monthly volatility of 17.3% 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 -33.6% for NXTG 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 0.82. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

NXTG charges 0.70% per year while VXUS charges 0.05%. On a $10,000 position that is $70 vs $5 annually, a gap of $65 per year that compounds over a long holding period. On income, NXTG currently yields 1.15% against 2.60% for VXUS.

Holdings Overlap

1.9%overlap

NXTG and VXUS share 35 holdings out of 7925 unique holdings combined, representing a 1.9% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in NXTGWeight in VXUSDifference
6758:JP1.34%0.31%1.03%
2303:TW1.54%0.05%1.49%
6701:JP1.43%0.08%1.35%
6669:TWProProPro
TCS:MBProProPro
2454:TWProProPro
TECHM:MBProProPro
6723:JPProProPro
PRYMYProProPro
2308:TWProProPro
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Frequently Asked Questions

Which is cheaper, NXTG or VXUS?

NXTG has an expense ratio of 0.70% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $65 per year of difference.

Which performed better, NXTG or VXUS?

Over the past year NXTG returned +58.01% vs +27.82% for VXUS, so NXTG leads on 1-year performance. Over the longest common window we track (16 years), NXTG annualized +12.01% vs +4.86% for VXUS. Past performance does not guarantee future results.

Which is riskier, NXTG or VXUS?

NXTG has been the more volatile fund at 17.3% annualized versus 15.1% for VXUS. Worst drawdown: NXTG -33.6% vs VXUS -39.9%.

Should I hold both NXTG and VXUS?

NXTG and VXUS have a monthly-return correlation of 0.82, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between NXTG and VXUS?

NXTG and VXUS share 35 common holdings with a 1.9% weight overlap. Combined, they hold 7925 unique securities.

Which pays a higher dividend, NXTG or VXUS?

NXTG yields 1.15% while VXUS yields 2.60%, so VXUS currently pays the higher dividend yield.

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