RNEM vs VXUS

First Trust Emerging Markets Equity Select ETF (RNEM) 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 RNEM returned +7.02% while VXUS returned +27.38%. Year to date, RNEM is up 2.06% versus a gain of 14.19% for VXUS.

Over three years, RNEM compounded at +7.67% per year against +19.53% for VXUS; over five years the annualized figures are +5.45% and +9.03% respectively. Across the full 9-year window we track, VXUS has the edge at +4.83% annualized vs +3.04%. Past performance does not guarantee future results.

VXUS has been the more volatile fund, with annualized monthly volatility of 15.1% 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 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.

RNEM charges 0.76% per year while VXUS charges 0.05%. On a $10,000 position that is $76 vs $5 annually, a gap of $71 per year that compounds over a long holding period. On income, RNEM currently yields 2.77% against 2.60% for VXUS.