RNEM vs VXUS
First Trust Emerging Markets Equity Select ETF vs Vanguard Total International Stock ETF
Which is better, RNEM or VXUS?
Large Cap Value against Large Cap Blend.
VXUS has a lower expense ratio. VXUS led over 1Y, 3Y, 5Y and the full window.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | RNEM | VXUS |
|---|---|---|
| Expense Ratio | 0.75% | 0.05%Best |
| AUM | $17M | $158.1B |
| Dividend Yield | 2.27% | 2.59% |
| Holdings | 311 | 8,747 |
| YTD Return | +4.25% | +16.15%Best |
| 1Y Return | +9.49% | +27.58%Best |
| 3Y Return (annualized) | +8.31% | +20.48%Best |
| 5Y Return (annualized) | +5.72% | +9.09%Best |
| Volatility (annualized) | 14.3%Best | 15.4% |
| Max Drawdown | -42.3% | -39.9%Best |
| $10,000 over 5 years | $13,206 | $15,450Best |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Value | Large Cap Blend |
| Inception | Jun 20, 2017 | Jan 26, 2011 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Jun 23, 2017 to Sep 4, 2026 (9.2 years).
RNEM vs VXUS growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 9.2 years both funds cover.
RNEM vs VXUS Performance
First Trust Emerging Markets Equity Select ETF (RNEM) is an ETF from First Trust Portfolios (US) and Vanguard Total International Stock ETF (VXUS) is an ETF from Vanguard (US). Over the past year RNEM returned +9.49% while VXUS returned +27.58%. Year to date, RNEM is up 4.25% versus a gain of 16.15% for VXUS.
Over three years, RNEM compounded at +8.31% per year against +20.48% for VXUS; over five years the annualized figures are +5.72% and +9.09% respectively. Across the full 9-year window we track, VXUS has the edge at +7.91% annualized vs +3.25%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VXUS has been the more volatile fund, with annualized monthly volatility of 15.4% compared with 14.3% for RNEM. 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 -42.3% for RNEM and -39.9% for VXUS. Drawdown depth is what each fund did in the worst stretch of the window measured above.
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
RNEM charges 0.75% per year while VXUS charges 0.05%. On a $10,000 position that is $75 vs $5 annually, a gap of $70 per year that compounds over a long holding period. On income, RNEM currently yields 2.27% against 2.59% for VXUS.
Holdings Overlap
At least 56.7% of RNEM's money is in holdings VXUS also owns.
Stated as a floor: for VXUS, our book for it covers 87.5% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
The two portfolios partly overlap.
174 positions in common, counted across the 287 positions we hold weights for in RNEM and 8,092 in VXUS, against full books of 311 and 8,747.
Top Shared Holdings
| Stock | Weight in RNEM | Weight in VXUS | Difference |
|---|---|---|---|
| 3034:TWNovatek Microelectronics Corp | 3.99% | 0.02% | 3.97% |
| 500114:MBTitan Co Ltd /Inr/ | 3.45% | 0.04% | 3.41% |
| RELIANCE:MBReliance Industries Ltd | 2.40% | 0.20% | 2.20% |
| TCS:MBTata Consultancy Services Ltd | 2.54% | 0.05% | 2.49% |
| PIDI:MBPidilite Industries Ltd | 2.33% | 0.01% | 2.32% |
| PETR4:BVPetroleo Brasileiro S.a. - Petrobras, Preferred Shares | 1.58% | 0.07% | 1.51% |
| 3320:HKChina Resources Pharmaceutical Group Ltd | 1.52% | 0.00% | 1.52% |
| 1101:TWTaiwan Cement Corp | 1.21% | 0.01% | 1.20% |
| 1402:TWFar Eastern New Century Corp | 1.17% | 0.01% | 1.16% |
| 1102:TWAsia Cement Corp | 1.08% | 0.01% | 1.07% |
56.7% of RNEM is already inside VXUS.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, RNEM or VXUS?
RNEM has an expense ratio of 0.75% while VXUS charges 0.05%. VXUS is the cheaper option, by $70 a year on a $10,000 investment.
Which performed better, RNEM or VXUS?
Over the past year RNEM returned +9.49% vs +27.58% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (9 years), RNEM annualized +3.25% vs +7.91% for VXUS. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, RNEM or VXUS?
VXUS has been the more volatile fund at 15.4% annualized versus 14.3% for RNEM. Worst drawdown: RNEM -42.3% vs VXUS -39.9%.
Should I hold both RNEM and VXUS?
RNEM and VXUS have a monthly-return correlation of 0.85, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between RNEM and VXUS?
At least 56.7% of RNEM's money is in holdings VXUS also owns. Our book for VXUS is partial, so the real figure is this or higher. They hold 174 positions in common, counted across the 287 positions we hold weights for in RNEM and 8,092 in VXUS.
Which pays a higher dividend, RNEM or VXUS?
RNEM yields 2.27% while VXUS yields 2.59%, so VXUS currently pays the higher dividend yield.
Is VXUS better than RNEM?
VXUS has a lower expense ratio. VXUS led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.