VFIAX vs VXUS
Vanguard 500 Index Fund Admiral Class vs Vanguard Total International Stock ETF
Which is better, VFIAX or VXUS?
Each has led over a different period.
VFIAX has a lower expense ratio. VFIAX 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 | VFIAX | VXUS |
|---|---|---|
| Expense Ratio | 0.04%Best | 0.05% |
| AUM | $677.6B | $158.1B |
| Dividend Yield | 1.03% | 2.51% |
| Holdings | 506 | 8,747 |
| YTD Price Return | +10.31% | +13.01%Best |
| 1Y Price Return | +14.25% | +17.42%Best |
| 3Y Price Return (annualized) | +19.25%Best | +16.18% |
| 5Y Price Return (annualized) | +11.63%Best | +5.77% |
| Volatility (annualized) | 15.6% | 15.3%Best |
| Max Drawdown | -25.4%Best | -31.2% |
| $10,000 over 5 years | $17,334Best | $13,238 |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Blend |
| Inception | Nov 13, 2000 | Jan 26, 2011 |
Not shown on this pair: Top 10 Weight.
Returns are price returns and exclude distributions, because our data feed carries no adjusted close for VFIAX. Both funds are measured the same way, so the comparison holds. VFIAX yields 1.03% and VXUS 2.51% on top.
Volatility and max drawdown are measured over the window both funds cover: Sep 20, 2021 to Sep 16, 2026 (5 years).
VFIAX 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 5 years both funds cover. Prices exclude distributions, on both funds alike.
VFIAX vs VXUS Performance
Vanguard 500 Index Fund Admiral Class (VFIAX) is a mutual fund from Vanguard (US) and Vanguard Total International Stock ETF (VXUS) is an ETF from Vanguard (US). Over the past year VFIAX returned +14.25% while VXUS returned +17.42%. Year to date, VFIAX is up 10.31% versus a gain of 13.01% for VXUS.
Over three years, VFIAX compounded at +19.25% per year against +16.18% for VXUS; over five years the annualized figures are +11.63% and +5.77% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VFIAX has been the more volatile fund, with annualized monthly volatility of 15.6% compared with 15.3% 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 -25.4% for VFIAX and -31.2% 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 0.80. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VFIAX charges 0.04% per year while VXUS charges 0.05%. On a $10,000 position that is $4 vs $5 annually, a gap of $1 per year that compounds over a long holding period. On income, VFIAX currently yields 1.03% against 2.51% for VXUS.
Structure and taxes
VFIAX is a mutual fund and VXUS is an ETF. A mutual fund prices once a day at net asset value and may carry a purchase minimum. An ETF trades through the day at whatever the market pays for it.
In a taxable account the difference that usually matters is distributions. An ETF can meet redemptions in kind, so it rarely has to sell holdings and rarely passes a capital gain to the people who held it; a mutual fund that sells holdings to meet redemptions can distribute a realised gain at year end to everyone still in the fund, whether or not they sold anything themselves. In a tax-deferred account that difference largely disappears. Both are descriptions of how the two wrappers work, not a recommendation.
Tax-loss harvesting works on either wrapper.
Holdings Overlap
At least 0.2% of VFIAX's money is in holdings VXUS also owns.
Stated as a floor: for VXUS, our book for it covers 88.8% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
We cannot see either book well enough to say how much of this pair is duplicated.
4 positions in common, counted across the 500 positions we hold weights for in VFIAX and 8,082 in VXUS, against full books of 506 and 8,747.
You are not choosing between two funds in isolation.
Whichever of VFIAX 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, VFIAX or VXUS?
VFIAX has an expense ratio of 0.04% while VXUS charges 0.05%. VFIAX is the cheaper option, by $1 a year on a $10,000 investment.
Which performed better, VFIAX or VXUS?
Over the past year VFIAX returned +14.25% vs +17.42% for VXUS, so VXUS leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VFIAX or VXUS?
VFIAX has been the more volatile fund at 15.6% annualized versus 15.3% for VXUS. Worst drawdown: VFIAX -25.4% vs VXUS -31.2%.
Should I hold both VFIAX and VXUS?
VFIAX and VXUS have a monthly-return correlation of 0.80, 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, VFIAX or VXUS?
VFIAX yields 1.03% while VXUS yields 2.51%, so VXUS currently pays the higher dividend yield.
Is it better to hold VFIAX or VXUS in a taxable account?
VXUS is an ETF and VFIAX is a mutual fund. An ETF can meet redemptions in kind, so it rarely distributes a capital gain to the people holding it. A mutual fund that sells holdings to meet redemptions can pass a realised gain to every holder at year end. In a tax-deferred account that difference largely disappears. This is information, not a recommendation.
Is VXUS better than VFIAX?
VFIAX has a lower expense ratio. VFIAX 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.