FHEQ vs VXUS
FHEQ vs VXUS
Fidelity Hedged Equity ETF 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 7860 holdings.
Side-by-Side Comparison
| Metric | FHEQ | VXUS | Winner |
|---|---|---|---|
| Expense Ratio | 0.48% | 0.05% | |
| AUM | $897M | $156.5B | |
| Dividend Yield | 0.55% | 2.60% | |
| Holdings | 172 | 8,747 | |
| YTD Return | +11.13% | +13.57% | |
| 1Y Return | +18.25% | +28.78% | |
| 3Y Return (annualized) | - | +18.63% | |
| 5Y Return (annualized) | - | +9.05% | |
| Volatility (annualized) | 9.7% | 15.1% | |
| Max Drawdown | -11.1% | -39.9% | |
| Fund Family | Fidelity Investments (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Apr 9, 2024 | Jan 26, 2011 |
FHEQ vs VXUS Performance
Fidelity Hedged Equity ETF (FHEQ) is a ETF from Fidelity Investments (US) and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year FHEQ returned +18.25% while VXUS returned +28.78%. Year to date, FHEQ is up 11.13% versus a gain of 13.57% for VXUS.
Risk: Volatility and Drawdowns
VXUS has been the more volatile fund, with annualized monthly volatility of 15.1% compared with 9.7% for FHEQ. 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 -11.1% for FHEQ 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 0.59. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FHEQ charges 0.48% per year while VXUS charges 0.05%. On a $10,000 position that is $48 vs $5 annually, a gap of $43 per year that compounds over a long holding period. On income, FHEQ currently yields 0.55% against 2.60% for VXUS.
Holdings Overlap
FHEQ and VXUS share 3 holdings out of 8025 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FHEQ or VXUS?
FHEQ has an expense ratio of 0.48% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $43 per year of difference.
Which performed better, FHEQ or VXUS?
Over the past year FHEQ returned +18.25% vs +28.78% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (2 years), FHEQ annualized +15.34% vs +4.80% for VXUS. Past performance does not guarantee future results.
Which is riskier, FHEQ or VXUS?
VXUS has been the more volatile fund at 15.1% annualized versus 9.7% for FHEQ. Worst drawdown: FHEQ -11.1% vs VXUS -39.9%.
Should I hold both FHEQ and VXUS?
FHEQ and VXUS have a monthly-return correlation of 0.59, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FHEQ and VXUS?
FHEQ and VXUS share 3 common holdings with a 0.0% weight overlap. Combined, they hold 8025 unique securities.
Which pays a higher dividend, FHEQ or VXUS?
FHEQ yields 0.55% while VXUS yields 2.60%, so VXUS currently pays the higher dividend yield.
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