ALAI vs VXUS

Quick Verdict

VXUS has a lower expense ratio. ALAI delivered stronger 1-year returns. VXUS offers more diversification with 7861 holdings.

Lower Fees: VXUSHigher Returns: ALAIMore Diversified: VXUS

Side-by-Side Comparison

MetricALAIVXUSWinner
Expense Ratio0.58%0.05%
AUM$461M$156.5B
Dividend Yield1.19%2.60%
Holdings598,747
YTD Return+22.00%+13.40%
1Y Return+37.20%+27.42%
3Y Return (annualized)-+18.54%
5Y Return (annualized)-+9.05%
Volatility (annualized)25.9%15.1%
Max Drawdown-29.4%-39.9%
Fund FamilyAlgerVanguard (US)
CategoryEquityEquity
InceptionApr 4, 2024Jan 26, 2011

ALAI vs VXUS Performance

Alger AI Enablers & Adopters ETF (ALAI) is a ETF from Alger and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year ALAI returned +37.20% while VXUS returned +27.42%. Year to date, ALAI is up 22.00% versus a gain of 13.40% for VXUS.

Risk: Volatility and Drawdowns

ALAI has been the more volatile fund, with annualized monthly volatility of 25.9% 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 -29.4% for ALAI 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 0.40. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

ALAI charges 0.58% per year while VXUS charges 0.05%. On a $10,000 position that is $58 vs $5 annually, a gap of $53 per year that compounds over a long holding period. On income, ALAI currently yields 1.19% against 2.60% for VXUS.

Holdings Overlap

0.7%overlap

ALAI and VXUS share 4 holdings out of 7920 unique holdings combined, representing a 0.7% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in ALAIWeight in VXUSDifference
ASML:AS0.23%1.29%1.06%
GFL:CA1.16%0.02%1.14%
SHOP:CA0.50%0.33%0.17%
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Frequently Asked Questions

Which is cheaper, ALAI or VXUS?

ALAI has an expense ratio of 0.58% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $53 per year of difference.

Which performed better, ALAI or VXUS?

Over the past year ALAI returned +37.20% vs +27.42% for VXUS, so ALAI leads on 1-year performance. Over the longest common window we track (2 years), ALAI annualized +41.63% vs +4.79% for VXUS. Past performance does not guarantee future results.

Which is riskier, ALAI or VXUS?

ALAI has been the more volatile fund at 25.9% annualized versus 15.1% for VXUS. Worst drawdown: ALAI -29.4% vs VXUS -39.9%.

Should I hold both ALAI and VXUS?

ALAI and VXUS have a monthly-return correlation of 0.40, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between ALAI and VXUS?

ALAI and VXUS share 4 common holdings with a 0.7% weight overlap. Combined, they hold 7920 unique securities.

Which pays a higher dividend, ALAI or VXUS?

ALAI yields 1.19% while VXUS yields 2.60%, so VXUS currently pays the higher dividend yield.

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