EMD vs VXUS
EMD vs VXUS
Western Asset Emerging Markets Debt Fund Inc vs Vanguard Total International Stock ETF
Quick Verdict
VXUS has a lower expense ratio. VXUS delivered stronger 1-year returns. VXUS offers more diversification with 7861 holdings.
Side-by-Side Comparison
| Metric | EMD | VXUS | Winner |
|---|---|---|---|
| Expense Ratio | 1.59% | 0.05% | |
| AUM | $636M | $156.5B | |
| Dividend Yield | 9.68% | 2.60% | |
| Holdings | 278 | 8,747 | |
| YTD Return | +4.76% | +13.40% | |
| 1Y Return | +15.97% | +27.42% | |
| 3Y Return (annualized) | +17.52% | +18.54% | |
| 5Y Return (annualized) | +4.95% | +9.05% | |
| Volatility (annualized) | 17.2% | 15.1% | |
| Max Drawdown | -64.5% | -39.9% | |
| Fund Family | Franklin Templeton Investments (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Dec 1, 2003 | Jan 26, 2011 |
EMD vs VXUS Performance
Western Asset Emerging Markets Debt Fund Inc (EMD) 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 EMD returned +15.97% while VXUS returned +27.42%. Year to date, EMD is up 4.76% versus a gain of 13.40% for VXUS.
Over three years, EMD compounded at +17.52% per year against +18.54% for VXUS; over five years the annualized figures are +4.95% and +9.05% respectively. Across the full 16-year window we track, VXUS has the edge at +4.79% annualized vs -0.32%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
EMD has been the more volatile fund, with annualized monthly volatility of 17.2% 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 -64.5% for EMD 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 0.80. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
EMD charges 1.59% per year while VXUS charges 0.05%. On a $10,000 position that is $159 vs $5 annually, a gap of $154 per year that compounds over a long holding period. On income, EMD currently yields 9.68% against 2.60% for VXUS.
Holdings Overlap
EMD and VXUS share 1 holdings out of 7996 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 EMD | Weight in VXUS | Difference |
|---|---|---|---|
| ARGENT 4.125 07/09/3 | 2.34% | 0.00% | 2.34% |
Frequently Asked Questions
Which is cheaper, EMD or VXUS?
EMD has an expense ratio of 1.59% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $154 per year of difference.
Which performed better, EMD or VXUS?
Over the past year EMD returned +15.97% vs +27.42% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (16 years), EMD annualized -0.32% vs +4.79% for VXUS. Past performance does not guarantee future results.
Which is riskier, EMD or VXUS?
EMD has been the more volatile fund at 17.2% annualized versus 15.1% for VXUS. Worst drawdown: EMD -64.5% vs VXUS -39.9%.
Should I hold both EMD and VXUS?
EMD and VXUS have a monthly-return correlation of 0.80, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between EMD and VXUS?
EMD and VXUS share 1 common holdings with a 0.0% weight overlap. Combined, they hold 7996 unique securities.
Which pays a higher dividend, EMD or VXUS?
EMD yields 9.68% while VXUS yields 2.60%, so EMD currently pays the higher dividend yield.
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