PCY 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

MetricPCYVXUSWinner
Expense Ratio0.50%0.05%
AUM$1.4B$156.5B
Dividend Yield5.81%2.60%
Holdings1048,747
YTD Return+1.48%+14.57%
1Y Return+8.54%+27.82%
3Y Return (annualized)+9.69%+19.27%
5Y Return (annualized)+1.22%+9.28%
Volatility (annualized)13.6%15.1%
Max Drawdown-49.4%-39.9%
Fund FamilyInvesco (US)Vanguard (US)
CategoryFixed IncomeEquity
InceptionOct 11, 2007Jan 26, 2011

PCY vs VXUS Performance

Invesco Emerging Markets Sovereign Debt ETF (PCY) is a ETF from Invesco (US) and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year PCY returned +8.54% while VXUS returned +27.82%. Year to date, PCY is up 1.48% versus a gain of 14.57% for VXUS.

Over three years, PCY compounded at +9.69% per year against +19.27% for VXUS; over five years the annualized figures are +1.22% and +9.28% respectively. Across the full 16-year window we track, VXUS has the edge at +4.86% annualized vs +0.80%. 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 13.6% for PCY. 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 -49.4% for PCY 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 0.74. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

PCY charges 0.50% per year while VXUS charges 0.05%. On a $10,000 position that is $50 vs $5 annually, a gap of $45 per year that compounds over a long holding period. On income, PCY currently yields 5.81% against 2.60% for VXUS.

Holdings Overlap

0.0%overlap

PCY and VXUS share 0 holdings out of 7939 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, PCY or VXUS?

PCY has an expense ratio of 0.50% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $45 per year of difference.

Which performed better, PCY or VXUS?

Over the past year PCY returned +8.54% vs +27.82% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (16 years), PCY annualized +0.80% vs +4.86% for VXUS. Past performance does not guarantee future results.

Which is riskier, PCY or VXUS?

VXUS has been the more volatile fund at 15.1% annualized versus 13.6% for PCY. Worst drawdown: PCY -49.4% vs VXUS -39.9%.

Should I hold both PCY and VXUS?

PCY and VXUS have a monthly-return correlation of 0.74, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between PCY and VXUS?

PCY and VXUS share 0 common holdings with a 0.0% weight overlap. Combined, they hold 7939 unique securities.

Which pays a higher dividend, PCY or VXUS?

PCY yields 5.81% while VXUS yields 2.60%, so PCY currently pays the higher dividend yield.

Get Full ETF Analytics

Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.

X-ray your whole portfolio
$99/yr7-day refund. ETFs, mutual funds, 401(k)s.
Get Pro →