USMC vs VXUS
Principal U.S. Mega-Cap ETF vs Vanguard Total International Stock ETF
Which is better, USMC or VXUS?
Each has led over a different period.
VXUS has a lower expense ratio. USMC led over 3Y, 5Y and the full window, VXUS over 1Y.
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 | USMC | VXUS |
|---|---|---|
| Expense Ratio | 0.12% | 0.05%Best |
| AUM | $5.1B | $158.1B |
| Dividend Yield | 0.74% | 2.51% |
| Holdings | 29 | 8,747 |
| YTD Return | +12.29% | +13.64%Best |
| 1Y Return | +12.99% | +20.82%Best |
| 3Y Return (annualized) | +20.96%Best | +19.58% |
| 5Y Return (annualized) | +14.48%Best | +9.14% |
| Volatility (annualized) | 15.4%Best | 15.7% |
| Max Drawdown | -30.0%Best | -39.9% |
| $10,000 over 5 years | $19,663Best | $15,485 |
| Fund Family | Principal Funds | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Blend |
| Inception | Oct 11, 2017 | Jan 26, 2011 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Oct 12, 2017 to Sep 17, 2026 (8.9 years).
USMC 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 8.9 years both funds cover.
USMC vs VXUS Performance
Principal U.S. Mega-Cap ETF (USMC) is an ETF from Principal Funds and Vanguard Total International Stock ETF (VXUS) is an ETF from Vanguard (US). Over the past year USMC returned +12.99% while VXUS returned +20.82%. Year to date, USMC is up 12.29% versus a gain of 13.64% for VXUS.
Over three years, USMC compounded at +20.96% per year against +19.58% for VXUS; over five years the annualized figures are +14.48% and +9.14% respectively. Across the full 9-year window we track, USMC has the edge at +14.22% annualized vs +7.05%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VXUS has been the more volatile fund, with annualized monthly volatility of 15.7% compared with 15.4% for USMC. 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 -30.0% for USMC 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 0.79. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
USMC charges 0.12% per year while VXUS charges 0.05%. On a $10,000 position that is $12 vs $5 annually, a gap of $7 per year that compounds over a long holding period. On income, USMC currently yields 0.74% against 2.51% for VXUS.
Holdings Overlap
We hold position weights for 27 holdings in USMC and 8,082 in VXUS, totalling 99.9% and 88.8% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 27 positions we hold weights for in USMC and 8,082 in VXUS, against full books of 29 and 8,747.
What only one of them owns
Measured across the 27 and 8,082 positions we hold weights for.
VXUS holds 35 positions USMC does not, 2.3% of the fund.
Largest: MKL 0.76%, SHEL 0.57%, VWO 0.11%, JD 0.09%, ALC 0.08%
You are not choosing between two funds in isolation.
Whichever of USMC and VXUS you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, USMC or VXUS?
USMC has an expense ratio of 0.12% while VXUS charges 0.05%. VXUS is the cheaper option, by $7 a year on a $10,000 investment.
Which performed better, USMC or VXUS?
Over the past year USMC returned +12.99% vs +20.82% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (9 years), USMC annualized +14.22% vs +7.05% for VXUS. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, USMC or VXUS?
VXUS has been the more volatile fund at 15.7% annualized versus 15.4% for USMC. Worst drawdown: USMC -30.0% vs VXUS -39.9%.
Should I hold both USMC and VXUS?
USMC and VXUS have a monthly-return correlation of 0.79, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, USMC or VXUS?
USMC yields 0.74% while VXUS yields 2.51%, so VXUS currently pays the higher dividend yield.
Is VXUS better than USMC?
VXUS has a lower expense ratio. USMC led over 3Y, 5Y and the full window, VXUS over 1Y. Which one suits a particular account depends on what it is for. This is information, not a recommendation.