PCEF vs VXUS
Invesco CEF Income Composite 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 7861 holdings.
Side-by-Side Comparison
| Metric | PCEF | VXUS | Winner |
|---|---|---|---|
| Expense Ratio | 2.71% | 0.05% | |
| AUM | $796M | $156.5B | |
| Dividend Yield | 7.61% | 2.60% | |
| Holdings | 110 | 8,747 | |
| YTD Return | +7.64% | +14.07% | |
| 1Y Return | +11.67% | +27.24% | |
| 3Y Return (annualized) | +13.26% | +19.27% | |
| 5Y Return (annualized) | +4.89% | +9.14% | |
| Volatility (annualized) | 11.6% | 15.1% | |
| Max Drawdown | -46.0% | -39.9% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Allocation/Balanced | Equity | |
| Inception | Feb 19, 2010 | Jan 26, 2011 |
PCEF vs VXUS Performance
Invesco CEF Income Composite ETF (PCEF) is a ETF from Invesco (US) and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year PCEF returned +11.67% while VXUS returned +27.24%. Year to date, PCEF is up 7.64% versus a gain of 14.07% for VXUS.
Over three years, PCEF compounded at +13.26% per year against +19.27% for VXUS; over five years the annualized figures are +4.89% and +9.14% respectively. Across the full 16-year window we track, VXUS has the edge at +4.83% annualized vs +1.52%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VXUS has been the more volatile fund, with annualized monthly volatility of 15.1% compared with 11.6% for PCEF. 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 -46.0% for PCEF 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 0.85. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
PCEF charges 2.71% per year while VXUS charges 0.05%. On a $10,000 position that is $271 vs $5 annually, a gap of $266 per year that compounds over a long holding period. On income, PCEF currently yields 7.61% against 2.60% for VXUS.
Holdings Overlap
PCEF and VXUS share 1 holdings out of 7967 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in PCEF | Weight in VXUS | Difference |
|---|---|---|---|
| 0QWN:LN | 0.25% | 0.00% | 0.25% |
Frequently Asked Questions
Which is cheaper, PCEF or VXUS?
PCEF has an expense ratio of 2.71% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $266 per year of difference.
Which performed better, PCEF or VXUS?
Over the past year PCEF returned +11.67% vs +27.24% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (16 years), PCEF annualized +1.52% vs +4.83% for VXUS. Past performance does not guarantee future results.
Which is riskier, PCEF or VXUS?
VXUS has been the more volatile fund at 15.1% annualized versus 11.6% for PCEF. Worst drawdown: PCEF -46.0% vs VXUS -39.9%.
Should I hold both PCEF and VXUS?
PCEF and VXUS have a monthly-return correlation of 0.85, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PCEF and VXUS?
PCEF and VXUS share 1 common holdings with a 0.0% weight overlap. Combined, they hold 7967 unique securities.
Which pays a higher dividend, PCEF or VXUS?
PCEF yields 7.61% while VXUS yields 2.60%, so PCEF currently pays the higher dividend yield.
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