TEI vs VXUS
TEI vs VXUS
Templeton Emerging Markets Income Fund Inc. vs Vanguard Total International Stock ETF
Quick Verdict
VXUS has a lower expense ratio. TEI delivered stronger 1-year returns. VXUS offers more diversification with 7861 holdings.
Side-by-Side Comparison
| Metric | TEI | VXUS | Winner |
|---|---|---|---|
| Expense Ratio | 1.14% | 0.05% | |
| AUM | $2,711.9 | $156.5B | |
| Dividend Yield | 12.41% | 2.60% | |
| Holdings | 151 | 8,747 | |
| YTD Return | +9.87% | +14.57% | |
| 1Y Return | +28.63% | +27.82% | |
| 3Y Return (annualized) | +23.94% | +19.27% | |
| 5Y Return (annualized) | +8.86% | +9.28% | |
| Volatility (annualized) | 17.9% | 15.1% | |
| Max Drawdown | -71.1% | -39.9% | |
| Fund Family | Franklin Templeton Investments (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Sep 23, 1993 | Jan 26, 2011 |
TEI vs VXUS Performance
Templeton Emerging Markets Income Fund Inc. (TEI) is a ETF from Franklin Templeton Investments (US) and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year TEI returned +28.63% while VXUS returned +27.82%. Year to date, TEI is up 9.87% versus a gain of 14.57% for VXUS.
Over three years, TEI compounded at +23.94% per year against +19.27% for VXUS; over five years the annualized figures are +8.86% and +9.28% respectively. Across the full 16-year window we track, VXUS has the edge at +4.86% annualized vs +0.38%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
TEI has been the more volatile fund, with annualized monthly volatility of 17.9% 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 -71.1% for TEI 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 0.73. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
TEI charges 1.14% per year while VXUS charges 0.05%. On a $10,000 position that is $114 vs $5 annually, a gap of $109 per year that compounds over a long holding period. On income, TEI currently yields 12.41% against 2.60% for VXUS.
Holdings Overlap
TEI and VXUS share 1 holdings out of 7880 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 TEI | Weight in VXUS | Difference |
|---|---|---|---|
| ARGENT 4.125 07/09/3 | 2.81% | 0.00% | 2.81% |
Frequently Asked Questions
Which is cheaper, TEI or VXUS?
TEI has an expense ratio of 1.14% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $109 per year of difference.
Which performed better, TEI or VXUS?
Over the past year TEI returned +28.63% vs +27.82% for VXUS, so TEI leads on 1-year performance. Over the longest common window we track (16 years), TEI annualized +0.38% vs +4.86% for VXUS. Past performance does not guarantee future results.
Which is riskier, TEI or VXUS?
TEI has been the more volatile fund at 17.9% annualized versus 15.1% for VXUS. Worst drawdown: TEI -71.1% vs VXUS -39.9%.
Should I hold both TEI and VXUS?
TEI and VXUS have a monthly-return correlation of 0.73, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between TEI and VXUS?
TEI and VXUS share 1 common holdings with a 0.0% weight overlap. Combined, they hold 7880 unique securities.
Which pays a higher dividend, TEI or VXUS?
TEI yields 12.41% while VXUS yields 2.60%, so TEI currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.